IMPACT – HIGH

What is the change? Employers sponsoring workers in the Subclass 457 visa category will soon be given 28 calendar days to report certain status changes, such as the end of the visa worker’s employment or changes to his or her work duties. Currently, employers are only given 10 working days.

What does the change mean? The change was one of several the Australian Government said it would endorse when it announced its support for a number of recommendations an independent committee made to overhaul the 457 visa category.

  • Implementation timeframe: 18 April 2015.
  • Visas/permits affected: Subclass 457 visas.
  • Who is affected: Employers sponsoring foreign workers in the Subclass 457 visa category.
  • Business impact: The change is a positive development for business, as employers will have more time to notify authorities of changes related to employees holding 457 visas.

Background: Earlier this month, the Australian Government announced its support for a number of changes that had been recommended to overhaul the Subclass 457 visa programme. The changes include altering English-language testing requirements, changing training programmes, re-evaluating visa processing and fees and stricter penalties for abuse.

The 28-day notification period, which was recommended by the committee in 2014, provides employers sponsoring 457 visa holders more leeway and flexibility when it comes to notifying the Government of certain changes to the visa holder’s status. Changes that require notification – “notifiable events” – include the end of the visa holder’s employment, changes in work duties, payment of a visa holder’s return travel costs and, in some cases, changes in the company’s corporate structure.

BAL Analysis: The change is a positive development for 457 visa sponsors, who, up to this point, have been given a short window of time to report “notifiable events” to the authorities.

This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.

MARN: 9683856

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