Business Sale and the 482 Visa: Nominee Rights on Change of Owner

When the business changes hands, what happens to the 482 visa?

Selling, merging, or restructuring a business is normal in commerce. However, for an employee sponsored on a subclass 482 visa, this event raises a number of important legal questions: Is the visa still valid? Does the new owner automatically become the sponsor? What must the employee do?

The answer depends on the form of the business transaction — and this is where many people are confused and overlook the issue until it is too late.

Two forms of transfer with different consequences

In a share sale, the owner sells their shares in the company to a buyer. The legal entity does not change — it is still the same company with the same ACN. Only the shareholder changes.

Effect on the 482 visa:

The company’s SBS status is usually maintained (because the legal entity does not change)
The employee’s 482 visa remains valid
The existing nomination remains in effect
The sponsor in law remains the same legal entity (even though the underlying owner has changed)

However, the new owner is obliged to notify DHA of the change in ownership within the prescribed period, and must ensure ongoing compliance with the sponsor obligations.

Form 2: Asset sale

In an asset sale, the buyer acquires the assets, customers, brand, and contracts — but does not acquire the legal entity. The old company is usually wound up or ceases operating.

Effect on the 482 visa:

The old company’s SBS status does not automatically transfer to the new company
The new company needs to register its own SBS (if it does not already hold one)
The old nomination is tied to the old legal entity and becomes ineffective if that entity ceases operating
The employee’s 482 visa remains valid, but the employee cannot continue working for the new company until there is a new nomination

This is the point many people do not realise: a valid visa does not mean the employee can work for the new owner without a new nomination.

A nominee’s rights after a change of owner

The visa remains valid

A subclass 482 visa is granted to the individual nominee, not to the sponsor. As a result, when the sponsor changes or ceases operating, the visa is not automatically cancelled. The nominee may remain lawfully in Australia.

The right to find new work — 60 days

When a sponsor can no longer continue to sponsor (because of an asset sale, winding up, insolvency, and so on), the nominee is given a period of time to:

Find a new sponsor (move to another employer)
Prepare to depart Australia if none can be found

This period is known as the “60-day period” — 60 days from when they are no longer sponsored. During this time, the nominee does not breach the visa conditions even without a job.

Note: 60 days is a maximum period; it does not mean the employee can work freely for anyone during that time. To work for the new owner, an approved nomination from the new owner is required first.

Rights to wages and working conditions

During the transition period, the nominee’s labour rights under the Fair Work Act remain fully protected. The old owner (or the buyer where there is a takeover) is responsible for paying all outstanding amounts in full: wages, annual leave, and superannuation.

A sponsor’s responsibilities when selling the business

A sponsor that sells the business is obliged to:

Notify DHA of the change in the structure of the business — this is a mandatory obligation within the prescribed period
Notify the nominee of the sponsorship status so that they can plan
Pay in full all financial obligations before handover
Not transfer the sponsorship obligation to the buyer without a formal DHA process

Failing to notify DHA can lead to a breach of sponsor obligations and penalties.

The process for the new company to continue sponsoring

If the new company wishes to continue employing a worker on a 482 visa, the process is:

The new company registers an SBS (if it does not already hold one) — processing usually takes 3–8 weeks
Once the SBS is in place, lodge a new nomination for the nominee
After the nomination is approved, the nominee begins working for the new company
No new visa is needed if the current 482 visa remains valid and the position conditions are similar

During the wait, both parties must be careful: the nominee must not work for the new company until the nomination is approved. Breaching the visa conditions can seriously affect future visa applications.

Practical advice

If you are an investor acquiring a business: check the list of 482 employees during due diligence, and have an SBS + nomination plan in place before the transaction completes.
If you are a nominee: ask both the old and new owner to clarify your sponsorship status as soon as there is information about the transaction.
If you are a business owner selling: consult a migration agent before signing the sale contract so that you understand your obligations to 482 employees.