How to Sponsor a Worker After SBS Approval

Becoming a Standard Business Sponsor (SBS) is a significant responsibility. It allows businesses to hire skilled workers from overseas to fill gaps in their workforce. However, the sponsorship process doesn’t end once you’re approved. There are several important steps, reports, and responsibilities you need to complete to ensure a smooth and legal employment relationship with your sponsored worker.

In this blog, we’ll walk through the essential steps involved in sponsoring a worker after SBS Approval, including the necessary reports like Labour Market Testing (LMT), Market Salary Rate (MSR), and ensuring that the position is genuine. Let’s dive in!

Confirm Your Sponsor Status

Before sponsoring a worker, you must first be approved as a sponsor by the relevant immigration authorities. The sponsorship process typically involves showing your commitment to hiring from overseas while adhering to the country’s immigration laws.

Once you’re approved, you’ll have sponsor status. However, this comes with ongoing obligations. You need to comply with various regulations, including providing support for your sponsored employee and fulfilling reporting requirements.

Offer a Genuine Position

One of the most critical elements of sponsoring a worker is ensuring the position is legitimate. Immigration authorities want to avoid situations where companies bring in foreign workers to bypass local employment laws or fill non-existent roles.

To prove the position is genuine, you need to demonstrate:

The role aligns with your company’s operations and structure.
It is a full-time, long-term position (not temporary or part-time).
The job description accurately reflects the responsibilities and qualifications required.

When submitting your application for a sponsored worker, be ready to justify the role’s legitimacy with supporting documents and detailed job descriptions.

Conduct Labour Market Testing (LMT)

Labour Market Testing (LMT) ensures that local workers are given priority before sponsoring a foreign worker. LMT involves advertising the position locally to confirm that no suitable candidates are available.

To conduct LMT:

Advertise the position on well-known platforms, such as job boards, newspapers, or industry-specific sites.
Ensure the ad reaches the right audience and remains open for at least four weeks.
Keep detailed records of your advertising efforts, including dates and where the job was posted. These records are necessary for your sponsorship application.

LMT helps demonstrate your genuine efforts to hire locally before seeking foreign labor. The more transparent and detailed your LMT efforts, the stronger your case will be.

Determine the Market Salary Rate (MSR)

Before submitting your sponsorship application, you must confirm that the salary aligns with the Market Salary Rate (MSR). The MSR is the salary typically paid to a local worker doing the same job in your area or industry. Ensuring your salary offer meets or exceeds the MSR helps avoid exploitation of overseas workers and ensures fair compensation.

To determine the correct MSR:

Check salary benchmarks provided by government agencies or labor departments.
Consult industry reports or wage surveys specific to the role or region.
If your company’s wage offer falls below the MSR, consider increasing the salary to meet the threshold.

Failure to meet the MSR may jeopardize your ability to sponsor a worker and legally employ foreign labor.

Provide a Sponsorship Undertaking

As a sponsor, you’ll need to sign a sponsorship undertaking that outlines your obligations and responsibilities. This document serves as a contract with immigration authorities, agreeing to uphold the integrity of the sponsorship.

A sponsorship undertaking will typically include:

A commitment to hire the sponsored worker under fair terms and conditions.
An agreement to provide accurate reports on the worker’s employment status.
A guarantee that you’ll meet workplace rights, including wages, working conditions, and entitlements.
The obligation to notify authorities of any changes in the worker’s status, such as termination, resignation, or promotion.

Ongoing Compliance and Reporting

Once your sponsored worker joins your team, you must comply with several ongoing reporting requirements. These include:

Annual Reports: Some countries require sponsors to submit annual reports. These reports provide details about your business and the status of your sponsored workers.
Reporting Changes: If the worker’s role or circumstances change, notify immigration authorities promptly. Changes such as a job title change, salary adjustment, or relocation must be reported within 28 days.
Monitoring Employment: You must ensure the worker remains in the position for which they were sponsored. If they no longer meet the terms of their sponsorship, you must inform authorities and may need to terminate the sponsorship.

Enforcing Workplace Rights and Responsibilities

As a sponsor, you must comply with workplace laws to ensure your sponsored workers receive the same rights and protections as local employees. This includes:

Ensuring workers are paid fairly and on time.
Providing appropriate working conditions, including breaks and work hours.
Offering necessary tools and resources for the job.

Failure to meet these responsibilities could lead to penalties or the cancellation of your sponsor status.

Conclusion

Sponsoring a worker is a rewarding process that allows you to access global talent and fill critical skill gaps. However, it comes with significant responsibilities. From conducting Labour Market Testing (LMT) and meeting the Market Salary Rate (MSR) to offering a genuine position and ensuring ongoing compliance, every step must be handled carefully.

By staying organized, maintaining detailed records, and keeping the process transparent, you’ll ensure compliance and foster a successful working relationship with your overseas employees.

At Aurelia, we specialize in the 482 and 186 visa processes, helping businesses navigate the complexities of sponsoring workers from overseas. From gaining SBS approval to ensuring compliance with LMT and MSR requirements, we provide end-to-end support to make the process seamless and stress-free. Contact us today to ensure your sponsorship journey is handled with professionalism and expertise.

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