457 Standard Business Sponsorship Obligations

Standard Business Sponsors, or otherwise referred to as Subclass 457 Sponsors, must adhere to certain sponsorship obligations for each year that they are an approved 457 sponsor. Failure to adhere to these sponsorship obligations can lead to a variety of sanctions including:

Administrative Sanctions

• cancelling the sponsor’s approval as a sponsor
• barring the sponsor, for a specified period, from sponsoring more people under the terms of one or more existing specified approvals for different kinds of visa (however described)
• barring the sponsor, for a specified period, from making future applications for approval as a sponsor in relation to one or more classes

Enforceable Undertaking

You could be invited to enter into an enforceable undertaking.  Enforceable undertakings require you to promise, in writing, to undertake to complete certain actions to demonstrate that the failures have been rectified and won’t happen again. 

Civil

The DIBP can issue an infringement notice of up to AUD 10,200 for a body corporate and AUD 2,040 for an individual for each failure. The DIBP can also apply to a court for a civil penalty order of up to AUD 51,000 for a corporation and AUD 10,200 for an individual for each failure.

Accordingly, 457 sponsors must:

• cooperate with inspectors
• ensure equivalent terms and conditions of employment
• keep records
• provide records and information to the Minister
• tell us when certain events occur
• ensure  the visa holder  participates in the nominated occupation, program or activity
• not recover from, transfer or charge certain costs to another person
• pay travel costs to enable sponsored people to leave Australia
• pay costs  to remove unlawful non-citizens
• provide training to Australians and permanent residents
• not engage in discriminatory recruitment practices.

For more information, download our 457 Sponsor Obligation PDF Handout here.

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