Monitoring

Sponsor Monitoring

Businesses that have been approved to sponsor overseas workers may be monitored by the Department of Immigration & Citizenship (DIAC) to check the businesses compliance with DIAC’s sponsorship obligations.

Employers need to be aware of the obligations imposed when they are approved as business sponsors under the Migration Act 1958.

In brief, these obligations relate to record keeping, paying certain costs for visa holders, notifying DIAC of certain events, and ensuring that visa holders enjoy terms and conditions of employment that are no less favourable than their Australian counterparts. For a full list and description of the obligations, please click here.

Employers who fail to satisfy their sponsorship obligations may be sanctioned by DIAC. In relation to the sponsorship obligations, particular points to be aware of are:

  • If a sponsored employee ceases working for you, you must notify DIAC within ten working days of the person ceasing employment. You can also inform DIAC ahead of time.
  • You must keep certain records relating to sponsored employees, including a current position description which records the location of where the sponsored person is employed.
  • DIAC’s new record keeping requirements mean that, practically speaking, it is no longer possible to pay cash to sponsored persons for their work.
  • Certain DIAC monitoring officers now have inspection powers (similar to Fair Work inspectors), and have a lawful power to enter the premises of a business sponsor, as well as the authority to request documents from a sponsor, or to interview any employees.

How We Can Help

We can provide expert, in-depth advice on the sponsorship obligations framework, how it may impact on your business, and how you can comply with the obligations. In addition, we can take on matters where non-compliance has occurred, and work with you to achieve the best possible outcome with the least disruption to your business.

Our expertise in this area has recently been augmented by the recruitment of a former DIAC monitoring inspector. Our corporate clients are kept abreast of important changes to the monitoring space. We offer expertise & advice in relation to the sponsorship obligations.

  • Prevention & risk management in relation to the sponsorship obligations.
  • Acting on your behalf in relation to DIAC monitoring audits.
  • Advice & advocacy if you find you have breached the sponsorship obligations framework.

Possible Sanctions

Infringement Notices

Legislative changes introduced in September 2009 mean that DIAC monitoring inspectors can now issue Infringement Notices to employers who fail to satisfy a sponsorship obligation. An Infringement Notice is an on-the-spot fine that an employer can choose to pay to avoid further legal action by DIAC.

Infringement Notices can be issued for amounts of $6,600 for a body corporate and $1,320 for an individual for each failure to satisfy a sponsorship obligation.

Civil Penalties

In some cases DIAC may apply to a Court for a civil penalty order. A Civil Penalty Order can be a fine of up to $33,000 for a corporation and $6,600 for an individual for each failure to satisfy a sponsorship obligation.

Sponsorship Bar or Cancellation

In addition to financial penalties, DIAC can cancel a current sponsorship or bar an employer from sponsoring overseas workers for a period up to five years (or both). If a business’ sponsorship is cancelled, any 457 workers employed by that business may have their visas cancelled.

If you find yourself inadvertently in breach of the obligations framework, please  contact us.

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