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Standard Business Sponsorship (SBS) Obligations

Nov 11, 2022 | AUS | 0 comments

If you wish to sponsor a foreign worker, you will need to meet certain requirements. The Department of Home Affairs (DOHA) has set out several requirements that a sponsor must adhere to when acting as a standard business sponsor. If a sponsor fails to meet the requirements, they could face several penalties. Obligations commence on the day the sponsorship is approved or the day the work agreement commences. Obligations include:

Inform the Department when certain events occur

The sponsor must tell the Department when certain events occur. 

  1. All businesses – all businesses must notify the Department within 28 calendar days if:
  • the visa holder’s employment ends or is expected to end 
  • there are changes to the work duties carried out by the sponsored visa holder
  • you have paid the return travel costs of a sponsored visa holder or any of their family members in accordance with the obligation to pay return travel costs
  • you have become insolvent 
  • business ceases to exist as a legal entity
  1. Companies – all companies must notify the Department within 28 calendar days if:
  • if an administrator is appointed for the company 
  • the company resolves by special resolution to be wound up voluntarily 
  • a court has ordered that the company be wound up in insolvency 
  • a court has appointed an official liquidator to be the provisional liquidator of the company 
  • a court has approved a compromise or arrangement proposed by the company 
  • the property of the company becomes subject to a receiver or other controller 
  • procedures are initiated for the deregistration of the company 
  • a restructuring practitioner for the company is appointed 
  1. Partnerships – all partnerships must notify the Department within 28 calendar says it:
  • a new partner joins the partnership
  • any of the events listed for an individual or a company occurs
  1. Unincorporated associations – all unincorporated associations must notify the Department within 28 calendar says if:
  • a new member is appointed to the managing committee of the association
  • any of the events listed for an individual or a company occurs

Ensure employees work only in the nominated occupation

A sponsor must ensure the sponsored employee works only in the nominated occupation. A sponsor must lodge a new nomination if the visa holders want to work in a different occupation.

Ensure equivalent terms and conditions of employment

If you are a standard business sponsor:

  • the annual earnings of the employee must be at least the same as those stated on the nomination application when we approved the application
  • the employment conditions of the employee must not be less favourable than those of an equivalent Australian worker

Not engage in discriminatory recruitment practices

A sponsor must not engage in, or have not engaged in, discriminatory recruitment practices that adversely affect Australian citizens, or any other person, based on their visa or citizenship status.

Keep records

You must keep records to show your compliance with your sponsorship obligations. All records must be kept in a reproducible format and some must be capable of verification by an independent person. 

Assume all costs yourself

You must pay and assume all the following costs yourself:

  • cost of becoming a sponsor
  • nomination charges
  • migration agent costs associated with sponsorship and nomination applications

You must also pay and assume all costs associated with the recruitment process

Pay travel costs

You must pay reasonable and necessary travel costs to let the sponsored employee and their sponsored family members leave Australia.

Pay costs to locate and remove an unlawful non-citizen

If your sponsored employee or any of their sponsored family members becomes an unlawful non-citizen, you might have to repay the costs incurred by the Commonwealth in relocating and/or removing them from Australia.

Cooperate with inspectors

Inspectors are appointed under the Migration Act 1958 (the Act) to investigate whether:

  • your sponsorship obligations are being, or have been, complied with
  • you have hired an illegal worker
  • there are other circumstances in which we could take administrative action

Monitoring of sponsors and visa holders

The Department monitors compliance with sponsor obligations when you are a sponsor and up to five years after your sponsorship ends.

Some obligations apply to some temporary activities sponsors only, these include:

Subclass 407 visa holders – You must ensure the visa holder only works or participates in the nominated occupation, program or activity. If you want to engage a visa holder for a different job, program or activity, they must submit a new visa application.

Subclass 408 visa holders – You must ensure the visa holder only performs the activity for which the visa was granted. If you want to engage a visa holder for a different activity, they must submit a new visa application.

Secure an offer of a reasonable standard of accommodation for the visa holder – If you sponsor someone to work for you as a volunteer without a salary or wages, you must secure an offer of a reasonable standard of accommodation in Australia for them and members of their family unit who hold the same visa.

Pay travel costs of sponsored visa holders This obligation applies to temporary activities sponsors of 408 visa holders.

Key TakeawayIf you wish to sponsor a foreign worker, you must be met sponsorship obligations. If a sponsor fails to comply with the obligations, they could face sanctions. If you have any questions about sponsorship obligations, please do not hesitate to contact us at ross@crystalmigration.net or on (02) 9189 2988.