Subclass 457 business sponsors - penalties, sanctions & enforcement

On 14 September 2009, the Migration Amendment (Worker Protection) Act 2008 (“the Worker Protection act”) gave effect to reforms to the temporary sponsored worker program (subclass 457). 

The laws introduced a new enforcement regime, including the introduction of civil penalty provisions.  The laws enabled the department of immigration to apply to a court (that is, an eligible court as defined in section 5(1) of the Act) for a civil penalty order or, alternatively, serve an infringement notice on a 457 business sponsor that is believed to have contravened a civil penalty provision. 

In addition to the civil penalty provisions, the administrative sanctions to bar a sponsor or cancel the approval of a 457 business sponsor were expanded to provide that action could be taken against all classes of approved sponsor in certain circumstances. 

On 1 July 2013, the Migration Act 1958 was amended to introduce enforceable undertakings as an alternative sanction option that may be applied if an approved 457 business sponsor is found not to have mat the applicable sponsorship obligations.  Enforceable undertaking may be used in addition to, or instead of, other administrative penalties available to the department of immigration.   

The various actions that may be taken in relation to approved 457 business sponsors or former approved sponsors are as follows: 

·         Bar or cancel the sponsor (under section 140M);

·         Serve an infringement notice

·         Obtain an enforceable undertaking

·         Pursue a civil penalty 

Business Monitoring

The department of immigration routinely monitors approved and former approved 457 business sponsors to determine their compliance with the sponsorship obligations.  Monitoring of sponsors typically requires the provision of records and documents, and may involve a site visit to the sponsor’s premises to interview visa holders, other employees and the sponsor.