Restructuring a business is a common part of modern operations, whether due to growth, acquisition, downsizing, or shifts in market strategy. However, if your workforce includes sponsored visa holders, it’s critical to understand how restructuring may affect their visa status and your obligations as an employer.
Here’s what every employer needs to know when making changes that could affect visa holders.
What Constitutes Business Restructuring?
Restructuring a business can take many forms, including:
- Mergers or acquisitions
- Change in company ownership or legal entity
- Downsizing or departmental changes
- Transferring staff between business entities
- Closure of certain operations or branches
Each of these changes can impact employer-sponsored visa holders, such as those on the Subclass 482 (Skills in Demand) or Subclass 186 (Employer Nomination Scheme) visas.
Key scenarios to consider when restructuring a business:
1. Change in ABN / Business Entity
If your business is taken over, merged, or the ABN changes, and the original entity ceases trading, you must:
- Apply for a new Standard Business Sponsorship under the new entity
- Lodge a new nomination for each sponsored visa holder
- Confirm that the visa holder remains in the same occupation and is paid the appropriate market salary
Note: The visa holder does not need to apply for a new visa, unless their occupation changes or their current visa is expiring.
2. Redundancies and Terminations
If a sponsored visa holder’s role becomes redundant:
- The visa holder must cease employment
- You must notify the Department of Home Affairs within 28 days
- The visa holder generally has up to 180 days to find a new sponsor, apply for another visa, or leave Australia
Failing to comply with these obligations can affect both the business and the visa holder’s status in Australia.
3. Transferring Workers Within a Group of Companies
If you operate under multiple ABNs (for example, subsidiaries or franchises), you must:
- Ensure the correct ABN is listed on the sponsorship
- Lodge a nomination transfer if moving the visa holder between non-associated entities
- Continue to meet all visa conditions and employment standards
How This Affects PR Pathways
Many sponsored workers are on a pathway to permanent residency (such as through the Subclass 186 visa). Business changes could affect their eligibility if:
- The nominated position is no longer available
- There is a gap in employment or sponsorship
- A new business entity has not completed the necessary steps to become a sponsor
It’s essential to maintain continuity of employment and nomination to ensure the visa holder remains on track for permanent residency.
Employer Obligations You Must Still Meet
When restructuring a business, you must continue to:
- Pay visa holders the agreed market salary
- Meet workplace entitlements under Australian law
- Keep accurate records of employment
- Notify the Department of any significant changes, including changes to sponsorship, employment status, or business structure
What Should You Do If You’re Planning to Restructure?
If you’re considering restructuring a business and you have visa holders on staff:
Seek advice early. Migration professionals can assess how the changes may impact your obligations.
Communicate clearly. Keep sponsored employees informed about the implications for their visa.
Prepare documentation. Be ready to submit new sponsorship or nomination applications if required.
Monitor visa expiry dates. Avoid disruptions by staying ahead of key deadlines.
Need Help Navigating Business Changes?
At Australian Visa and Immigration Experts (AVIE), we understand that business doesn’t stand still and neither should your immigration strategy. Our team of registered migration agents can guide you through the visa compliance process during business restructuring, helping you minimise risk and support your valued employees.
Reach out today to ensure your restructuring plans align with Australian immigration requirements.