SBS Sponsor Compliance Obligations After Approval
When approved as an SBS, a business begins a chain of long-term legal obligations. These obligations exist for the whole time the SBS is in force, and in some cases continue after an employee leaves the business.
Workplace obligations — the most important
Pay the correct salary and conditions: The employer must pay at least the rate agreed in the nomination — it cannot reduce the salary once the visa is granted. It must comply fully with the Fair Work Act.
Do not charge recruitment costs to the nominee: The employer cannot require the nominee to pay the SAF levy, visa fees, or nomination costs. This is a serious breach.
Do not exploit workers: Forcing unpaid overtime, providing worse working conditions than the contract, or abusing the worker’s dependence on the visa breaches both workplace law and immigration obligations.
Reporting obligations
The business must report to the Department within 28 days when any of the following occurs:
- A sponsored employee stops working (resignation, termination)
- A sponsored employee fails to report for work for a significant period
- The business changes its address, name, ABN, or legal structure
- The business ceases trading or merges
Report through ImmiAccount — there is a dedicated “sponsor obligation” section.
Obligation to cooperate with inspectors
The Department has the power to inspect a business to check compliance. When required, the business must:
- Allow inspectors to enter the business premises
- Provide relevant documents (payslips, timesheets, contracts)
- Answer the inspectors’ questions
A refusal to cooperate is a separate breach that can be dealt with on its own.
Return-travel costs if needed
In some situations (a visa cancelled because of the employer’s fault, where the nominee must leave Australia), the business may have to bear the cost of returning the nominee home. This obligation rarely arises but exists in the rules.
Consequences of a breach
Depending on the severity of the breach:
- Infringement notice: a fine from $13,320 (an individual) up to $66,600 (a body corporate) for each breach
- Civil penalty: a federal court may impose a higher penalty
- Bar from sponsoring: being barred from sponsoring for a period
- Cancellation of the SBS: affecting every employee currently being sponsored
The Fair Work Ombudsman and the Department cooperate in some investigations — a Fair Work breach can lead to a review of the SBS.