Becoming a Standard Business Sponsor allows an eligible Australian business to sponsor skilled overseas workers for certain employer-sponsored visa pathways. But sponsorship is not simply a one-off approval.
Once a business becomes an approved sponsor, it takes on a range of ongoing obligations designed to protect sponsored workers, support compliance with Australian workplace laws and ensure the employer-sponsored migration program is being used appropriately.
For businesses sponsoring workers on the Skills in Demand visa (subclass 482) and other relevant employer-sponsored pathways, understanding these obligations is essential.
A failure to meet sponsorship obligations can result in compliance action, financial penalties, restrictions on future sponsorship and, in serious cases, cancellation of existing sponsorship approvals.
So, what does a Standard Business Sponsor actually need to do?
What are the obligations of a Standard Business Sponsor?
The Department of Home Affairs sets out a number of obligations for Standard Business Sponsors. These include obligations relating to:
- Sponsored workers and their employment
- Salary and employment conditions
- Record keeping
- Reporting changes to the Department
- Recruitment practices
- Sponsorship and recruitment costs
- Travel costs
- Cooperation with inspectors
Some obligations continue after the sponsored worker stops working for the business or after the sponsorship approval ends.
This means businesses need to think about sponsorship as an ongoing compliance responsibility, rather than something that ends once a visa is granted.
What changes should I tell my registered migration agent about?
Businesses should not wait until a compliance issue arises before speaking with their registered migration agent (RMA).
If there is a significant change to the business or a sponsored employee’s circumstances, tell your RMA as soon as possible. Your RMA can assess whether the change needs to be reported to the Department of Home Affairs and advise on what steps need to be taken.
Changes that may need to be reported include:
- A sponsored employee stopping work or their employment ending earlier than expected
- A change to the employee’s duties
- Changes to the business name, structure, ownership or directors
- A change to the business address or contact details
- The business becoming insolvent or entering administration or liquidation
- The business ceasing to operate as a legal entity
In many cases, sponsors have a 28-calendar-day timeframe to notify the Department of relevant changes.
Rather than trying to determine the reporting requirements yourself, keeping your RMA informed allows them to identify what needs to be reported and help ensure the business remains compliant.
If your business sponsors overseas workers, AVIE’s Corporate Services team can provide support with employer sponsorship, nominations and ongoing immigration compliance.
Can I change my sponsored employee’s duties?
Sponsored workers generally need to work in the occupation for which they were nominated.
If a business wants to substantially change a sponsored employee’s role or duties, speak with your RMA before making the change.
Depending on the circumstances, a new nomination or other immigration steps may be required. Allowing a sponsored worker to move into a different occupation without checking the requirements first can create compliance issues for both the employer and employee.
The safest approach is to have the proposed change reviewed before it happens.
What salary and employment conditions must I provide?
Sponsors must meet Australia’s requirements around salary and employment conditions.
In general, a sponsored worker must receive at least the salary specified in the relevant nomination, and the employment conditions must not be less favourable than those provided to an equivalent Australian worker in the circumstances where the relevant requirements apply.
This means sponsorship is not simply about meeting the visa requirements at the time of application. Employers need to continue meeting their obligations throughout the sponsored worker’s employment.
If you are considering changing a worker’s salary, hours, position or employment conditions, speak with your RMA before making the change.
What records does a Standard Business Sponsor need to keep?
Sponsors must maintain records relating to their sponsorship obligations and make those records available if requested.
Depending on the circumstances, records can include information about:
- The sponsored worker’s position, duties and work location
- Salary and employment conditions
- The written employment contract
- Recruitment processes
- Travel costs
- Benefits provided to the worker
- Changes to the business or sponsored worker’s circumstances
- Notifications made to the Department
- Other documents relevant to sponsorship obligations
Good record keeping is an important part of sponsorship compliance. It can also make it significantly easier for your RMA to assess a situation if circumstances change.
Can I make a sponsored worker pay the cost of sponsorship?
No. There are certain sponsorship, nomination and recruitment costs that a business cannot pass on to a sponsored worker or their family.
This can include costs associated with becoming a sponsor, nomination-related costs and certain recruitment expenses.
This is an area where employers can unintentionally create compliance issues, particularly when multiple parties are involved in the recruitment process.
What happens if a sponsored worker needs to leave Australia?
In certain circumstances, a sponsor must pay reasonable and necessary travel costs for a sponsored worker and their family members to leave Australia if the worker makes a written request.
Sponsors generally need to meet the relevant costs within 30 days of receiving the request.
If a sponsored worker is leaving Australia and there is uncertainty about who is responsible for the costs or what the sponsor is required to pay, speak with your RMA before making arrangements.
Can the Department of Home Affairs inspect a sponsoring business?
Yes. Sponsors can be subject to monitoring and compliance activity.
The Department of Home Affairs can request information and records and may conduct site visits as part of its compliance activities. Information may also be shared with other government agencies where permitted.
This is another reason why maintaining accurate records and keeping your RMA informed about significant changes is so important.
A compliance issue is much easier to address when the business has accurate records and has sought professional advice before making significant changes.
What happens if a Standard Business Sponsor breaches its obligations?
Breaching sponsorship obligations can have serious consequences.
Depending on the circumstances, the Department may take action such as issuing a compliance notice, accepting an enforceable undertaking, restricting a business’s ability to sponsor additional workers or cancelling sponsorship approvals.
Civil penalties may also apply for certain breaches.
The consequences will depend on the nature and circumstances of the breach, which is why businesses should seek professional advice as soon as they become aware of a potential compliance issue.
How long do Standard Business Sponsor obligations last?
Not all sponsorship obligations end at the same time.
Some obligations can continue for a period after sponsorship ends or after the business stops employing a sponsored worker. For example, certain record-keeping and cost-related obligations can continue for two years, while some compliance-related obligations can extend for up to five years.
This means businesses should not assume that their responsibilities disappear as soon as a sponsorship approval expires or a sponsored employee leaves the business.
If you are unsure whether an obligation still applies, speak with your RMA before taking action.
How can a business stay compliant with its sponsorship obligations?
The simplest way to manage sponsorship compliance is to treat it as an ongoing business responsibility rather than a one-off visa process.
Businesses should:
- Keep their RMA informed about changes to the business or sponsored employees.
- Speak with their RMA before changing a sponsored worker’s role, salary or employment conditions.
- Keep accurate sponsorship and employment records.
- Make sure sponsored workers are employed in accordance with their nomination and visa requirements.
- Understand which costs the business is responsible for.
- Respond promptly to requests for information or documentation.
- Seek advice before making changes that could affect sponsorship.
Having a registered migration agent involved throughout the sponsorship process can help businesses identify potential issues early and take the appropriate steps to remain compliant.
Considering becoming a Standard Business Sponsor?
Sponsoring skilled workers can be an important part of a business’s workforce strategy, but it also comes with significant responsibilities.
Whether you are considering applying for Standard Business Sponsorship, preparing to nominate a worker or already sponsoring employees, getting the right advice can help you understand your obligations and avoid preventable compliance problems.
AVIE works with Australian businesses on employer-sponsored migration matters, including sponsorship, nominations and ongoing immigration requirements.
If you are unsure about your sponsorship obligations or have a change coming up within your business, speak with your registered migration agent before making the change. Getting advice early can help ensure the appropriate immigration steps are taken and your business continues to meet its sponsorship obligations.
