A recent Australian Border Force (ABF) investigation has reinforced an important message for employers who sponsor overseas workers: sponsorship related costs cannot be recovered from sponsored workers.

Background

An aged care provider located on the New South Wales South Coast sponsored 19 workers under the Skills in Demand (Subclass 482) visa program. The employer was subsequently the subject of a report from the Border Watch.

Following the report, ABF officers from the Department of Home Affairs’ Sponsor Monitoring Unit commenced an investigation into the company.

As part of the investigation, ABF officers conducted an unannounced site visit and interviewed both sponsored workers and company officials.

The investigation identified that the aged care provider had recovered sponsorship and nomination related costs from 13 of its sponsored workers. The total amount recovered from the employees was AUD $118,197.

Restrictions under Australian Migration Law

Australian migration law strictly prohibits approved sponsors from recovering certain sponsorship and nomination costs from sponsored workers.

As part of their sponsorship obligations, approved sponsors must agree that they will not:

1. Pass on sponsorship and nomination related costs to sponsored workers. These costs can include, but are not limited to, legal professional fees, migration agent fees, Department of Home Affairs nomination fees, sponsorship fees and the Skilling Australians Fund (SAF) levy;
2. Take action, or enter into an arrangement, that results in another person paying costs that the sponsor is prohibited from passing on;
3. Recover costs associated with a sponsored worker’s travel to leave Australia; and
4. Recover costs incurred in relation to removing an unlawful non-citizen from Australia.

Employers should also be aware that attempting to disguise or conceal the recovery of these costs does not avoid their obligations. For example, employers may breach their obligations if they manipulate or falsify payslips or otherwise structure payments to conceal amounts being recovered from sponsored workers.

Potential Consequences for Sponsors

If an employer is found to have breached its sponsorship obligations, enforcement action may include:

1. Requiring repayment to affected sponsored workers;
2. Restricting the company from sponsoring or nominating additional workers;
3. Cancelling the company’s sponsorship approval; and
4. Issuing infringement notices.

There is also a Register of Sanctioned Sponsors, which records employers that have been subject to certain sanctions.

Sanctions Imposed on the Aged Care Provider

The investigation found that the aged care provider had unlawfully recovered sponsorship and nomination related costs from sponsored workers.

The company acknowledged the breaches and repaid the affected workers in full, totalling nearly AUD $120,000.

In addition to repaying the workers, the company is now subject to a six-month bar on making new sponsorship and nomination applications.

A Warning for Sponsors

The restrictions on recovering sponsorship related costs are designed to protect sponsored workers and ensure that employers meet their obligations under Australia’s migration laws.

ABF Acting Commander Tim Thorley, Field Operations and Sponsor Monitoring, recently stated:

“The ABF conducts targeted and unannounced compliance activities across Australia and will take action where sponsors fail to comply with their legal responsibilities.”

This case serves as a clear warning to employers that sponsorship obligations must be taken seriously and complied with in full.

Sponsors should ensure that all sponsorship and nomination costs are properly identified and paid by the employer and are not passed on, directly or indirectly, to sponsored workers.

Contact our migration team to discuss how we can assist with your sponsorship obligations today.