Employer-sponsored workers can be critical in addressing skills shortages and filling specialist roles. However, sponsoring skilled workers imposes certain obligations on the employer which do not end when a visa is granted or even when the employment ends.
Businesses approved as standard business sponsors must comply with ongoing obligations relating to sponsored workers, including their employment arrangements, remuneration, record keeping and reporting requirements. Importantly, these obligations can be affected by decisions that would otherwise be treated as routine employment matters, such as promotions, restructures or terminations.
Failure to comply can expose a business to penalties, sponsorship restrictions and reputational damage. Below we discuss three sponsorship obligations that are commonly overlooked and how employers can manage the associated risks.
Three commonly overlooked sponsorship obligations
The obligation to notify the Department of Home Affairs within 28 days of specified events occurring which affect the business or the sponsored employee.
Sponsors must notify Home Affairs within 28 days of certain events. These include where a sponsored employee does not commence employment, ceases employment, or where significant changes occur within the sponsoring business, such as changes to directors, business details or financial status.
These obligations are often overlooked because employment decisions are made by HR, payroll or operational managers without reference to the person responsible for migration compliance. Businesses should ensure there is a process for escalating reportable events before notification deadlines expire.
The obligation to ensure the sponsored employee works only in their nominated occupation and on compliant terms and conditions.
Sponsored workers must continue to work in their nominated occupation and receive compliant employment conditions. A promotion, secondment, restructure or substantial change in duties may create migration issues if the resulting role no longer aligns with the approved occupation.
Before implementing significant changes, employers should assess whether the proposed duties remain consistent with the nominated occupation and obtain advice where necessary.
The obligation to keep records and provide information to inspectors when requested.
Sponsors must maintain records demonstrating compliance with sponsorship obligations, including records relating to employment, remuneration and work location. Sponsor monitoring may occur years after a visa is granted and the inability to produce records can itself breach both the Migration Act 1958 (Cth) and the Fair Work Act 2009 (Cth).
Employers should ensure HR, payroll and migration records are retained and accessible throughout the sponsorship period and any applicable record retention period.
Why compliance matters
Home Affairs has a range of enforcement options where sponsors fail to comply with their obligations. These can include compliance notices, financial penalties, enforceable undertakings, cancellation of sponsorship approvals and restrictions on future sponsorship applications.
In serious cases, employers may be placed on the Australian Border Force’s Prohibited Employer Register, preventing them from sponsoring additional workers and exposing the business to significant reputational damage.
For businesses that rely on skilled migration, the consequences can extend beyond regulatory penalties. Sponsorship restrictions may delay recruitment, leave specialist roles vacant and affect operational capacity.
The most effective way to manage this risk is to incorporate migration compliance into existing HR and workforce management systems. Sponsors should maintain central records of visa holders, establish escalation pathways for role changes and terminations, and ensure key personnel understand when migration advice should be sought.
How Batch Mewing Lawyers can help
Sponsorship obligations are often triggered by ordinary workplace decisions and can easily be overlooked without appropriate systems and oversight.
Batch Mewing Lawyers advises businesses on sponsorship compliance, internal compliance frameworks, audits, reporting obligations and responses to Home Affairs investigations. We work with employers to identify risks before they become compliance issues.
To discuss your sponsorship obligations or arrange a sponsorship compliance review, contact our Employment Services team.
