Sponsorship Obligations for Standard Business Sponsors

When businesses sponsor skilled workers for visas in Australia, they assume various responsibilities known as sponsorship obligations. These obligations are crucial for maintaining compliance with immigration laws and ensuring the welfare of sponsored employees. Failure to meet these obligations can lead to sanctions, including the cancellation of sponsorship status. This blog outlines the key sponsorship obligations that standard business sponsors must fulfill. Understand SBS here.

You have obligations as a sponsor. Some of your obligations apply beyond the term of sponsorship approval. To retain or renew your standard business sponsorship, you must continue to meet your sponsor obligations. You can read more about these here.

Notify Changes

As a sponsor, it is essential to inform the Department of Home Affairs about certain changes in your business or the employment status of your sponsored visa holders. Key events that require notification include:

Changes to your legal name, trading name, registration details, or business structure.
Changes to ongoing communication contacts or owners, directors, principals, or partners.
If your business becomes insolvent or ceases to exist as a legal entity.
If a sponsored employee stops working, has a change in duties, or did not commence work.

You must notify of these changes within 28 calendar days by emailing sponsor.notifications@abf.gov.au or completing the Notification of Sponsor Changes form in your Immi Account.

Employ Only in the Nominated Occupation

Sponsors must ensure that their employees work solely in the occupation for which they were nominated. If there is a need for the employee to switch to a different occupation, a new nomination must be lodged. This obligation begins when the visa is granted and continues until the employee’s visa is no longer valid.

Ensure Equivalent Terms and Conditions of Employment

As a sponsor, you are responsible for ensuring that the annual earnings and employment conditions of your sponsored employee are at least equivalent to those of an Australian worker in the same role. This obligation applies only if the employee earns less than AUD 250,000.

Maintain Records

It is essential to keep detailed records to demonstrate compliance with your sponsorship obligations. Records should include:

Written requests for payment of travel costs.
Details of how and when travel costs were paid.
Events that require reporting, including the date and method of notification.
Tasks performed by the employee and their corresponding earnings.

These records must be maintained in a format that can be verified by an independent person.

Pay Travel Costs

Sponsors are obligated to pay reasonable travel costs for their sponsored employees and their family members to leave Australia. This includes economy-class travel from the employee’s usual place of residence in Australia to their departure point and from Australia to their home country.

Costs for Locating and Removing Unlawful Non-Citizens

If a sponsored employee or their family member becomes an unlawful non-citizen, sponsors may be required to repay the Commonwealth for costs incurred in relocating or removing them from Australia. This obligation can extend up to five years after the sponsored individual has left Australia.

Cooperate with Inspectors

As part of your obligations, you must cooperate with inspectors appointed under the Migration Act 1958. This includes providing access to your premises, personnel, and necessary documents for investigation purposes. This obligation begins on the day the sponsorship is approved and lasts for five years after the sponsorship ends.

Monitor Compliance

The Department of Home Affairs monitors both sponsors and sponsored visa holders to ensure compliance with obligations. This monitoring can include site visits and requests for information about sponsorship compliance.

Conclusion

Understanding sponsorship obligations for standard business sponsors is crucial for maintaining your business’s sponsorship status and supporting your sponsored employees. By keeping the lines of communication open, ensuring compliance with employment conditions, and maintaining thorough records, businesses can effectively manage their responsibilities and contribute to a positive workplace environment. Always consult the Department of Home Affairs for the most up-to-date information on sponsorship obligations and ensure your business remains compliant.

Navigating sponsorship obligations can be complex and time-consuming. Aurelia Legal specializes in assisting businesses with compliance by providing expert legal advice, tailored solutions, and proactive strategies to meet their sponsorship obligations. If you need help understanding these obligations, ensuring compliance, or becoming a Standard Business Sponsor, contact us today. Let us guide you through the process with ease and confidence.

DISCLAIMER: This blog is for general information only. Legislation may change from time to time. Please refer to the latest legislation for current details.