457 visa sponsor penalised in first court case

Construction works in Western Australia... //TFA Photo

The Federal Magistrates Court in Victoria issued a decision against a 457 visa sponsor who underpaid a worker by $10,000, the Department of Immigration and Citizenship (DIAC) reported recently.

The court issued a pecuniary penalty of $35,000 plus costs of almost $11,000 to the employer, said DIAC, adding that the penalty is a “significant weight on the need to deter other employer sponsors from breaching their obligations.”

The immigration department said that this is the first time an action had been brought before the courts under the Migration Legislation Amendment (Worker Protection) Act 2008.

DIAC said that the court found the 457 sponsor company failing in two of its obligations: the obligation to pay equivalent terms and conditions, and the obligation to keep appropriate pay records.

‘DIAC will not tolerate abuse of the skilled migration program and this finding should send a strong signal to sponsors that they must fulfil their sponsorship obligations,’ a DIAC spokesperson said.

‘While the vast majority of sponsors are compliant, DIAC remains committed to strengthening the integrity of Australia’s skilled visa programs by identifying and penalising employers who do the wrong thing.’

Australia’s 457 visa program, introduced in 1996, was subject of a review in 2008 by Ms Barbara Deegan, an industrial relations expert appointed by the government specifically to review the integrity of Australia’s temporary skilled migration program.

Ms Deegan’s review produced a 100-page report with highlights of complaints by skilled workers including non-payment of overtime work.

The Deegan report also produced major recommendations which partly became the catalyst in the passage of the current worker protection law.

At the time of the review, the top three citizenship countries for primary applications granted were United Kingdom, India, and Philippines.

Demand for the program declined in 2009-10 following the global economic downturn.

In 2010-11 year, the number of subclass 457 primary visa applications picked up again to register a 39.7 per cent increase over the same period in 2009-10 program year.

Of the 38,910 number of primary applications lodged in 2010-11 to June 30, 2011, New South Wales topped with 13,920 applications followed by by Victoria (9,200), Western Australia (6,200), and Queensland (5,440).

As of June 30, 2011, Australia’s 457 program had 11,290 Australian and overseas employers who were approved to sponsor 457 workers.

The Federal Magistrates Court in Victoria issued a decision against a 457 visa sponsor who underpaid a worker by $10,000, the Department of Immigration and Citizenship (DIAC) reported recently.

The court issued a pecuniary penalty of $35,000 plus costs of almost $11,000 to the employer, said DIAC, adding that the penalty is a “significant weight on the need to deter other employer sponsors from breaching their obligations.”

The immigration department said that this is the first time an action had been brought before the courts under the Migration Legislation Amendment (Worker Protection) Act 2008.

DIAC said that the court found the 457 sponsor company failing in two of its obligations: the obligation to pay equivalent terms and conditions, and the obligation to keep appropriate pay records.

‘DIAC will not tolerate abuse of the skilled migration program and this finding should send a strong signal to sponsors that they must fulfil their sponsorship obligations,’ a DIAC spokesperson said.

‘While the vast majority of sponsors are compliant, DIAC remains committed to strengthening the integrity of Australia’s skilled visa programs by identifying and penalising employers who do the wrong thing.’

Australia’s 457 visa program, introduced in 1996, was subject of a review in 2008 by Ms Barbara Deegan, an industrial relations expert appointed by the government specifically to review the integrity of Australia’s temporary skilled migration program.

Ms Deegan’s review produced a 100-page report with highlights of complaints by skilled workers including non-payment of overtime work.

The Deegan report also produced major recommendations which partly became the catalyst in the passage of the current worker protection law.

At the time of the review, the top three citizenship countries for primary applications granted were United Kingdom, India, and Philippines.

Demand for the program declined in 2009-10 following the global economic downturn.

In 2010-11 year, the number of subclass 457 primary visa applications picked up again to register a 39.7 per cent increase over the same period in 2009-10 program year.

Of the 38,910 number of primary applications lodged in 2010-11 to June 30, 2011, New South Wales topped with 13,920 applications followed by by Victoria (9,200), Western Australia (6,200), and Queensland (5,440).

As of June 30, 2011, Australia’s 457 program had 11,290 Australian and overseas employers who were approved to sponsor 457 workers.

Trends in migration of Philippine nationals to Australia

In a separate report, DIAC reported that a total of 10 825 Philippine nationals were granted a permanent visa through Australia’s Migration Program in 2010-11.

Among these new visa holders, skill stream accounted for 73 per cent (7,849 visas) of the permanent visas granted, with nearly 80 per cent of grants going to Employer Sponsored applications.

Family Stream accounted for 27 per cent, or 2,963 visas, with more than 8 in 10 visas going to the partner (84 per cent) of an Australian resident.

During the same period, temporary visas granted to philippine nationals included 3,390 student visas.

Of this, nearly half were granted to those intending to undertake a Vocational Education and Training course in Australia

Business (Long Stay) (subclass 457) visas granted totalled 5,900 with registered nurses, structural steel and welding workers and motor mechanics being the main occupations of sponsored migrants and 36,937 visitor visas.

Australia’s 457 visa program focuses on facilitating the permanent entry of those who can makea positive contribution to Australia through their skills, qualifications, entrepreneurial spirit and employment potential.

The same DIAC source said that since 2007-08, 113 725 skilled visas were granted, with 7 849 grants or 7 percent of the total being granted to Philippine nationals.

Skilled visa grants 5.4 percent overall, however skilled visa grants to Filipinos rose by 15 per cent.

Currently, skilled visas now represent 73 per cent of all permanent visas issued to Philippine nationals compared to only 55 per cent in 2007-8.

Related Posts (by topic or by writer):

• 457 visa changes reduce migrant numbers intake, but healthcare workers still in demand
• Skilled migrant numbers slashed
• Report on integrity review of skilled migration program now available

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About Romy Cayabyab
Romy Cayabyab is publisher and founder of emanila.com and affiliated websites. He is an inaugural winner of the First Multicultural Media Awards for Coverage of Community Affairs in Australia. Learn more.
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