Employer Sponsorship Obligations: What Businesses Need To Know After Approval

Being approved as a standard business sponsor isn't the end of the process – it's the beginning of a set of ongoing obligations. These apply to businesses that hold Standard Business Sponsorships and/or Temporary Activity Sponsorships, and the specific obligations will vary depending on the nature of the sponsorship held.

It's also important to note that some of these obligations can apply for years after the sponsorship has expired (depending on the particular obligation). Below is an overview of the key areas that businesses should be across.

Which sponsor obligations apply to your business?

As mentioned earlier, the obligations that apply depend on the type of sponsorship you hold.

Standard Business Sponsor obligations generally apply to workers sponsored under the Subclass 482 (Skills in Demand) and Subclass 494 visas. Temporary Activity Sponsor obligations apply in respect of Subclass 407 visa holders, as well as certain Subclass 408 and Subclass 403 visa holders.

Obligations in respect of the sponsored worker

Sponsors have obligations relating directly to the employment of sponsored workers. These include (but are not limited to) the requirement that the worker:

• Works in their nominated position or occupation
• Receives a salary that is at least the amount listed in the nomination; and
• Receives a salary that is no less than what an Australian employed by the company in the same position would receive

You cannot pass sponsorship costs on to sponsored workers

The company must not pass on the costs associated with the sponsorship or nomination applications – including the professional fees associated with those applications – to the sponsored worker. These costs firmly remain the responsibility of the business. The costs associated with the visa application can generally be paid by either company or applicant.

RELATED: What Happens When A Sponsored Employee Resigns Or Is Terminated?

When do employers need to pay return travel costs?

If a sponsored worker decides to make their final departure from Australia after ceasing their sponsored role (either through resignation or being terminated), and makes a written request for the company to cover their return travel, the company is obliged to meet those costs.

In practice this generally means the cost of an economy flight to the worker's home country, along with the cost of travel to the airport.

This obligation ceases if the worker obtains a new visa, is nominated by a new sponsor, or leaves Australia. Where such travel costs are requested or paid, records should be kept.

When do you need to notify the Department of Home Affairs?

The company is also obliged to ensure the Department of Home Affairs is kept updated in respect of certain changes.

This includes changes to the company itself, such as, but not limited to:

• Legal or trading name
• Business structure
• Registration details
• Directors, or its entering insolvency or liquidation

It also includes certain changes to a sponsored worker's circumstances such as a change in their duties, the cessation of their employment, or where they have failed to commence working with you.

Importantly, the end of a worker’s employment or the expiry of your sponsorship does not necessarily mean every sponsor obligation ends immediately.

Speak to us before issues arise

There are many further aspects and complexities to the sponsor obligations beyond those set out above. If you would like to discuss any aspect of your obligations – whether it's before applying, during the sponsorship, or after it has ended – please reach out to Xemplo Legal (we'd be more than happy to assist).

This article provides general information only and does not constitute legal advice. It does not take into account your specific circumstances and should not be relied on as a substitute for advice tailored to your situation. For advice about your particular circumstances, please contact Xemplo Legal.