Sponsorship obligation amendments: strengthening the effectiveness of the worker protection reforms




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SPONSORSHIP OBLIGATION

AMENDMENTS:

STRENGTHENING THE EFFECTIVENESS OF THE WORKER PROTECTION REFORMS (OBPR ID: 2012/14171)


REGULATION IMPACT STATEMENT

Department of Immigration and Citizenship



January 2013

SPONSORSHIP OBLIGATION AMENDMENTS:
STRENGTHENING THE EFFECTIVENESS OF THE WORKER PROTECTION REFORMS (OBPR ID: 2012/14171)
REGULATION IMPACT STATEMENT
Contents


  1. Setting the scene - The Temporary Work (Skilled) (Subclass 457) visa program:




    1. Glossary of terms

1.2 Eligible skilled occupations

1.3 List of sponsorship obligations and the monitoring process

1.4 Sanctions for non-compliance


  1. Introduction


2.1 Overview of RIS

2.2 Overview of the Temporary Work (Skilled) (Subclass 457) visa program

2.3 Overview of the Worker Protection Act

2.4 The Deegan Review

2.5 Intention of the Worker Protection Act


  1. Problem


3.1 Current outcomes which are contrary to the above stated intentions

3.1.1 Regulation 2.86 - obligation to ensure primary sponsored person works or participates in nominated occupation, program or activity

3.1.2 Regulation 2.87 – Obligation not to recover certain costs from a primary sponsored person or secondary sponsored person

  1. Options


4.1 Maintain status quo

4.2 Amend policy settings

4.3 Amend regulations
5. Proposed solution - amend regulations
5.1 Objectives of the proposed regulatory amendments
5.2 First issue: Unintended employment relationships

5.3 Second issue: Recovery of costs
6. Impact Analysis – compliance consequences, benefits and risks
6.1 Likely impact of the proposed regulatory changes upon sponsors

6.2 Likely costs of compliance

6.3 Likely impact of the proposed regulatory changes upon sponsored persons

6.4 Likely impact of the proposed regulatory changes upon sponsored persons

6.5 Benefits

6.6 Risks
7. Consultation
7.1 External consultation
7.2 Internal consultation
8. Implementation and transitional arrangements
9. Conclusion

SPONSORSHIP OBLIGATION AMENDMENTS:
STRENGTHENING THE EFFECTIVENESS OF THE WORKER PROTECTION REFORMS
REGULATION IMPACT STATEMENT


1.SETTING THE SCENE




1.1 Glossary


ANZSCO

Australian and New Zealand Standard Classification of Occupations

Approved sponsor

A person who has been approved by the Minister (under s140E of The Migration Act 1958) in relation to a kind and class of visa prescribed by the regulations; and a person whose approval has not been cancelled

Australian

An Australian citizen or permanent resident

Associated entity

As defined in section 50AAA of the Corporations Act 2001

CSOL

The Consolidated Sponsored Occupation List (CSOL) details the occupations which a sponsor may nominate under the 457 visa program

Direct employment relationship

For the purposes of the 457 program, a direct employment relationship requires that an employer provides standard employment entitlements such as PAYG tax, superannuation and leave

Labour agreement

Labour agreements are formal agreements between the Australian Government and an employer. They enable employers to fill vacancies with 457 visa holders where they would not otherwise be able to under the standard 457 Program. Labour agreements enable employers to, amongst other things, on-hire sponsored employees to unrelated businesses

On-hire industry

Companies who seek to recruit overseas workers to hire out to unrelated businesses


Primary sponsored person

A primary sponsored person is an overseas person skilled worker who has been nominated to work temporarily in an occupation in Australia by a standard business sponsor

Secondary sponsored person

A secondary sponsored person is someone who

is included in the nomination by the sponsor for the primary sponsored person on the basis of being a member of the primary sponsored

person’s family unit. A secondary sponsored person is often also a secondary visa applicant


Secondary visa applicant

A secondary visa applicant is a person who is

seeking to meet the secondary requirements for the grant of a subclass 457 visa on the basis of being a member of the primary visa applicant’s family unit



Standard business sponsor

An Australian or overseas business that has been

approved as a standard business sponsor by the Minister (under s140E of The Migration Act 1958). This includes existing and formerly approved sponsors



Unintended employment relationship

For the purposes of the 457 visa program,

employment relationships which:



  • involve the sponsor

circumventing the benefits and entitlements (such as PAYG tax, superannuation or leave) that are normally associated with a direct employment relationship; or

  • where the authority to direct and control the work of a primary sponsored person may be ambiguous.


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