457 Visas: Employer and employee obligations

457 Visas: Employer and employee obligations

The highly publicised troubles of the 7-Eleven group highlights the need for all employers to be aware of their obligations to their employees, particularly if they are employing foreign workers. The current media attention centres around allegations  that foreign workers were paid at rates lower than should be paid for the type of work being done.

 

All employers are subject to scrutiny pursuant to the provisions of the Fair Work Act; in addition, employers of persons on 457 visas are subject to monitoring by the Department of Immigration and Border Protection.

 

From 1 June 2013, employers engaging or contracting legal workers face significant civil penalties up to $76,500 if it can be established that the employer:

 

• has allowed the person to work or does not have a visa,
• has allowed a person to work without a proper work condition,
• has referred a person to work who falls under the above categories, or, has participated in an arrangement where an illegal worker is allowed to work.
   

Employers who are investigated in respect of any of the above breaches must be able to prove that reasonable steps have been taken to verify that an employee or contractor had appropriate permission to work.

 

Two of the most common ways for foreign workers to be employed in a business are first, via the 457 program or second, as students who hold work rights.

 

Available statistics indicate that as at the end of June 2012 the number of businesses employing 457 Visa holders exceeded 22,000. This represented in excess of 160,000 primary and secondary visa holders, all with work rights.

 

Businesses which employ 457 Visa holders are approved by the Department of Immigration as sponsors, and part of the sponsorship process involves the sponsor agreeing to assume a number of obligations which may be subject to monitoring by the Department. Included in these obligations is an undertaking to ensure that the employed worker is to be remunerated appropriately for the role.

 

It is not necessary to have a sponsorship in place in order to employ students, and therefore no formal monitoring is involved. Nevertheless, businesses employing students are obliged to comply with the law and must verify that the students have proper work permissions. Normally students are permitted to work up to 20 hours a week while courses are in session and full-time during vacation periods.

 

Nevett Ford lawyers are specialised in all areas of migration and can advise you on your obligations in relation to employment of foreign workers, as well as providing migration advice to those wishing to apply for an Australian visa.