From 14 September 2009, all 457 visa sponsors (i.e. employers) are required to meet new sponsorship obligations.
Now, if you want to sponsor a worker under the Subclass 457 visa program, you must provide evidence to the Department of Immigration that you will pay the worker at market salary rates (i.e. equivalent salary rates to non-457 workers).
Example
Josie is a 457 visa holder and works for you as a tool maker. Other tool makers employed by you who have equivalent qualifications and experience as Josie are paid $48,000 a year. Therefore you must pay Josie $48,000.
If the visa holder is the only employee of their kind in your workplace, then the market salary rate you have to pay them will be determined by an applicable modern award or collective agreement. If an award or agreement does not apply to the employee’s type of work, then the market salary rate will be determined by remuneration surveys.
Under the new obligations, you cannot pay a 457 visa holder less than the Temporary Skilled Migration Income Threshold – currently $45 220 per annum. However, if you propose to pay a 457 visa holder more than $180 000 per annum, then the Department will not require evidence that their pay is the market salary rate.
Important: If you are party to an approved labour agreement then you must pay the 457 worker in accordance with that agreement.
For existing 457 workers, the minimum pay will remain the Minimum Salary Level (MSL) or prescribed level for the worker’s occupation, but only until 1 January 2010.
However, the new salary obligations will apply to an existing 457 worker if they:
- apply for a new Subclass 457 visa;
- change their employer sponsor; or
- vary their occupation.
For more details on how you can make sure your business is prepared for all the Fair Work Act changes, take a 14 day FREE trial of the Employment Law Practical Handbook. Click here to find out more!
Regards,
Charles Power
Editor-in-Chief
Employment Law Practical Handbook
Tags: 457 Visa, Collective Agreement, Department of Immigration, fair work act, market salary rate, Minimum Salary Level, modern award, new salary obligations, sponsorship obligations, subclass 457 visa program, Temporary Skilled Migration Income Threshold, visa holder
