IMPACT – MEDIUM

What is the change? Australian authorities raided the offices of a major mining and infrastructure firm this week, suspecting widespread visa fraud.

What does the change mean? The raids are the latest sign that the Australian Government is growing increasingly serious about Subclass 457 sponsorship violations. Employers should be vigilant to ensure they are in compliance with all 457 sponsorship requirements.

  • Implementation timeframe: Immediate and ongoing.
  • Visas/permits affected: Subclass 457 visas.
  • Who is affected: Employers sponsoring 457 visa holders.
  • Business impact: Businesses sponsoring 457 employees should take notice of the recent enforcement efforts.

Background: Officials raided the offices of Murphy Pipe and Civil, which authorities suspect helped dozens of foreign workers fraudulently obtain 457 visas. BAL reported last week that Australia has seen a string of cases involving employers alleged to have violated 457 sponsorship requirements. In Melbourne, a popular restaurant lost its right to recruit foreign workers for five years after being cited for 457 sponsorship violations. In Sydney, a restaurant and its owner faced penalties after being found to have underpaid a South Korean cook by more than A$50 000 over a 13-month period. And work at Manildra Group’s ethanol plant in Bomaderry was stopped last week after labour union leaders alleged incidents of Subclass 457 visa abuse.

BAL Analysis: The recent focus on Subclass 457 violations is a reminder of the importance of complying with visa guidelines. Penalties can be harsh and may include fines and sanctions. Contact a BAL Registered Migration Agent about taking the necessary measures to stay in compliance with Subclass 457 requirements.

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

MARN: 9683856

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