Standard Sponsorship Obligations

The sponsorship compliance framework was introduced in 2009 and sets out the obligations that sponsors must meet, the prescribed circumstances for which action may be taken, the range of penalties that can be considered for breaches and the powers of delegated inspectors who administer the framework. The framework is designed to protect sponsored persons from exploitation, the sponsored visa subclasses are being used for their intended purpose and the integrity of the sponsored visa programs is maintained. The current sponsorship compliance framework seeks to ensure that:

• the working conditions of sponsored persons meet Australian standards
• sponsored persons are not exploited by their sponsors
• visa programs are used for their intended purpose
• the obligations and requirements all sponsors must meet are standardized.

If a sponsorship obligation has been breached or a circumstance exists that the Australian Border Force (ABF) could take enforcement action, there are a number of actions that can be taken including:

• pursuing a civil penalty
• barring or cancelling the sponsor from engaging in the program
• serving an infringement notice
• engaging in an enforceable undertaking—currently not used under policy
• issuing an informal or formal warning
• taking a security—currently not used under policy

Approved sponsors

The sponsorship obligations apply to approved sponsors, as listed below:

• standard business sponsors
• temporary activities sponsors
• parties to a work agreement

The sponsorship obligations

The sponsorship obligations are:

• Cooperate with inspectors
• Ensure equivalent terms and conditions of employment
• Pay travel costs to enable sponsored persons to leave Australia
• Pay travel costs – Domestic Worker (executive)
• Pay costs incurred by the Commonwealth to locate and remove unlawful non-citizen
• Keep records
• Provide records and information to the Minister
• Provide information to this department when certain events occur
• Secure an offer of a reasonable standard of accommodation
• Ensure primary sponsored person works or participates in nominated occupation, program, or activity
• Ensure primary sponsored person works or participates in the activity in relation to which the visa was granted
• Not recover, transfer, or take actions that would result in another person paying for certain costs
• Provide training
• Not engage in discriminatory recruitment practices

Enforcement options

The Migration Act 1958 (the Act) prescribes several enforcement options depending on the type of failure, breach or contravention of the relevant provisions that has occurred.

Section 140K Sanctions for failing to satisfy sponsorship obligation

If an approved sponsor (or former sponsor) is found to have failed a sponsorship obligation, section 140K enables the Department to take one or more of the following actions:

• bar the sponsor or former sponsor
• cancel the person’s approval as a sponsor
• apply for a civil penalty order
• as an alternative to civil penalty proceedings, issue the person an infringement notice
• (via an authorised officer), require and take a security or enforce a security already taken

Cancelling approval as a sponsor or barring a sponsor

Under section 140L, if satisfied that any of the prescribed circumstances listed below exist in respect of an approved sponsor or former sponsor, the Department can take administrative action under section 140M. These actions may be to:

• cancel the approval of a person as a sponsor
• bar the sponsor from sponsoring more persons
• bar the sponsor from making future applications for approval as a sponsor.

The prescribed circumstances are:

• failure to meet the sponsorship obligations
• provision of false or misleading information
• application or variation criteria no longer met
• contravention of law
• unapproved change to professional development program or special program
• failure to pay additional security
• failure to comply with certain terms of special program agreement