Monitoring and Compliance

When a business agrees to sponsor a worker, it commits to a number of obligations, known as ‘undertakings’, with the Australian Department of Immigration and Citizenship (DIAC).

The current sponsorship undertakings for the Subclass 457 program, for example, include:

• Paying sponsored workers either the Minimum Salary Level or relevant award or collective agreement that applies to the person in relation to the position they were nominated for – whichever is higher.
• Ensuring obligations for PAYG tax and superannuation are the same as for Australian employees.
• Notifying DIAC of changes to the nature of a sponsorship such as change of address, changes to a company’s structure and details of any mergers.
• Ensuring sponsored workers hold any licence, registration or membership that is mandatory for their role.
• Advising DIAC of any substantial changes to the role and responsibilities of a sponsored worker – this may require a new visa application.

The penalties for non-compliance can be high and can be detrimental to the sponsoring business for years to come. Penalties available to DIAC under the Subclass 457 program include:

• cancellation of a sponsorship
• a bar that prevents a sponsoring business from sponsoring any more overseas workers under the program for up to five years
• the issuing of a formal warning, which will be considered when the business applies for more overseas workers in the future.

Monitoring of a business’s compliance can be undertaken as a desktop audit or visits by DIAC investigators. It is a requirement of a sponsorship agreement to cooperate with DIAC in the event of any monitoring.

ISA Group is one of the few immigration companies that provides a thorough monitoring and compliance service. We have helped businesses to avoid costly penalties by ensuring they meet the myriad of obligations that they undertake as part of a business sponsorship.

For more information on ISA Group’s monitoring and compliance service, please email noelene@isa.com.au