Rights of 457 visa holders in the event of losing job highlighted

by Ray Clancy on November 24, 2011

in Australia Immigration

Immigration implications for businesses and overseas workers they make redundant

With uncertainties about the economy creeping into Australia, overseas workers who are holders of 457 visas should be aware of their rights should their employer decide to reduce their hours or even make them redundant, it is claimed.

Employers who sponsor overseas workers have certain obligations and if they decide to make a 457 visa a holder redundant or otherwise terminate their employment they need to be aware of the immigration implications of this decision, according to advice from KPMG.

The business has an obligation to inform the Department of Immigration of the cessation of employment of a 457 visa holder within 10 working days and also to provide reasonable travel costs for the 457 visa holder and their dependant family members who also hold a 457 visa to return to their home country, it says.

It also points out that the situation of the visa holders needs to be taken into account which goes beyond just losing a job.

‘For those 457 visa holders not intending to return home or alternatively, unsure what their visa options are, the conclusion of their employment may leave them in a distressing situation where they have 28 days to leave Australia,’ it says.

KPMG advises that employers should sit down with the visa holder to discuss all possible options and adds that what might appear a simple option, such as reducing working hours, is not that straightforward.

‘It is important to note that there is no requirement that 457 visas holders work on a full time basis, however, if the visa nomination was granted on the basis of working full time and they will then be reducing their hours, and their salary, a new nomination would have to be approved before doing so,’ the advice explains.

‘As part of having a new nomination approved to allow a 457 visa holder to work part time the business will need to address whether other Australian employees in the business are also working reduced hours and ensure that the revised enumeration will still be in line with the market salary rate for the occupation and that the earnings will not be less than the Temporary Skilled Migration Income Threshold which is currently $49,330,’ it adds.

Some 457 visa holders may choose to take unpaid leave while a business is experiencing a quieter period and KPMG says that this may be possible without breaching their visa conditions or the businesses sponsorship obligations. This leave should be formally applied for by the 457 visa holder and must not exceed 12 months.

‘It is also important to note that if the 457 visa holder elects to do this they will need to have sufficient funds to support themselves during this period as they will not be able to seek other employment,’ KPMG says.

‘We recommend that the Department of Immigration and Citizenship (DIAC) is notified of periods of unpaid leave that are longer than one month as a conservative measure,’ it adds.

{ 1 comment… read it below or add one }

Max May 11, 2015 at 4:34 am

Thanks for writing something with no source material. Pointless.


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