Australian Work Visas: An Employer’s Guide to Sponsorship and Compliance

Australian businesses looking to fill critical skill shortages with international talent often consider sponsoring overseas workers on an Australian work visa. However, employer sponsorship is not a simple process. It comes with a formidable set of complex legal and compliance obligations that an Australian employer must fully understand and be prepared to meet. Failing to meet these responsibilities can result in severe penalties from the Australian Government, including fines and reputational damage. This blog offers authoritative guidance on work visas in Australia and the legal responsibilities involved in sponsoring foreign workers.

The Foundations of Employer Sponsorship: Your Obligations

Employer sponsorship is a formal legal agreement where an approved Australian employer agrees to nominate a position and sponsor a foreign worker on a specific visa. This sponsorship process requires a deep understanding of your ongoing sponsorship obligations. Our lawyers have extensive experience in this field and can provide detailed information on what is required to meet sponsorship obligations and maintain your status as an approved sponsor.

As a sponsoring employer, you must:

• Pay the sponsored employee the correct market salary rate, which must be consistent with the salary of an Australian citizen or permanent resident in a similar role and account for all associated costs.
• Comply with Australian workplace laws and employment laws, including those related to working conditions, hours, and pay.
• Meet mandatory training benchmarks designed to support the development of the Australian workforce.
• Maintain meticulous records, including all payroll data and employment contracts, to provide evidence of compliance with all relevant regulations.
• Notify the Department of Home Affairs of any changes to the employment relationship or the business itself, such as a change in address or the cessation of employment.

Fulfilling these legal requirements and compliance obligations is absolutely crucial to maintaining your sponsorship approval and ensuring visa holders can legally work in Australia without issue.

Key Steps in the Sponsorship Process

Navigating the sponsorship process involves a series of key steps that must be completed accurately. The process typically includes:

1. Sponsorship Approval: The business must first become an approved sponsor by demonstrating its financial capacity, its commitment to training Australian citizens and permanent residents, and its sound business practices.
2. The Nomination Application: This is a critical legal document. The nomination application requires the employer to formally identify a genuine position, prove that the role meets specific criteria, and show that labour market testing has been undertaken to ensure no suitably qualified Australian citizen or permanent resident is available to fill the position.
3. The Visa Application: Once the nomination is approved, the skilled worker can apply for the appropriate visa type. This visa application requires the skilled worker to meet eligibility criteria related to their skills, work experience, English proficiency, health checks, and character requirements, which often involves providing police clearance certificates. The processing times for a visa application can vary significantly depending on the visa subclass and the individual circumstances of the applicant.

It is important to remember that all three stages require a high level of accuracy and the necessary documentation to maximise the chances of a successful outcome.

The Main Types of Work Visas for Employers

Australia offers many types of work visas tailored for different employment needs. We can help you choose the appropriate visa type for both your prospective employee and your business. The main types of visas for employer sponsorship are:

Skills in Demand (SID) Visa (subclass 482): As of late 2024, this visa has replaced the former Temporary Skill Shortage (TSS) visa. The SID visa allows Australian businesses to sponsor skilled workers to address labour shortages. It is structured into three new pathways: the Specialist Skills stream, the Core Skills stream, and the Labour Agreement stream. This is a flexible work visa that enables businesses to access overseas workers to fill immediate gaps under a reformed framework.

Employer Nomination Scheme (ENS) Visa (subclass 186): The employer nomination scheme visa provides a pathway to permanent residency through employer sponsorship. This is a highly sought-after permanent work visa that offers stability for both employers and employees. It is for skilled workers who have a job offer from a qualified Australian employer and meet the specific criteria.

Skilled Employer Sponsored Regional (Provisional) Visa (subclass 494): This visa allows regional employers to sponsor skilled workers for positions they cannot fill locally. It is a five-year provisional visa that requires the visa holder to live, work, and study in a designated regional area. After meeting certain requirements, holders may be eligible to apply for permanent residency through the subclass 191 visa. The 494 visa helps address critical skill shortages while encouraging population and economic growth in regional communities.

Other Important Visa Considerations

When sponsoring an overseas worker, you might also need to consider other visa types, such as the Skilled Independent Visa (subclass 189) or the Working Holiday Visa. While these are not employer-sponsored, they may be relevant to a candidate’s current visa details and can impact their eligibility for future employer-sponsored visas. The eligibility criteria for each visa vary based on many factors, and a work permit is required to legally work in Australia. Our team of migration lawyers can provide clarity on all visa options to help you plan your global hiring strategy.

The Role of a Standard Business Sponsor

The concept of a standard business sponsor is central to the new Skills in Demand (SID) visa process. To be an approved standard business sponsor, a business must meet certain requirements set out by the Department of Home Affairs. This involves demonstrating a commitment to employing local workers and having a plan for training Australian workers. Once approved, a business can sponsor multiple overseas workers over five years. It is important to understand the full scope of a standard business sponsor’s obligations to meet the ongoing compliance requirements.

Why You Need an Australian Migration Lawyer

Navigating Australian immigration laws and visa requirements is complex. Our firm has extensive expertise in guiding businesses through this process, ensuring all eligibility criteria are met and visa applications are lodged correctly the first time. We help streamline the entire visa sponsorship process, from initial sponsor registration to the nomination and ongoing compliance.

We assist businesses with all aspects of relocating international talent, helping them understand the different employment needs that can arise. We can provide detailed information on everything from payroll requirements to the specific criteria for each visa. Our goal is to assist you in sponsoring skilled workers while avoiding the common pitfalls that can lead to delays or refusals.

Do not leave your visa sponsorship to chance. Contact Australian Migration Lawyers today for a consultation. Our expert team can provide the tailored legal advice you need to ensure compliance and make informed decisions about your workforce.