A Cautionary Tale: Substantial Penalties Imposed For Breaches of 457 Sponsorship Obligations
The operator of a number of restaurants and cafes in Darwin has been ordered to pay civil penalties of $175,400 for committing multiple breaches of its obligations under the 457 program. These fines were imposed by Justice Mansfield of the Federal Court of Australia in the case of Minister for Immigration and Border Protection v Choong Enterprises Pty Ltd (2015) FCA 390 (27 April 2015).
Although it does not appear that it is at all common for the Department to take enforcement proceedings against a 457 sponsor (in fact, my review of the Austlii database did not reveal any other cases where such action has been taken!) the Choong case should nonetheless serve as a reminder to sponsors concerning the importance of complying with their sponsorship obligations. The case also illustrates the serious financial consequences that can result if a sponsor does not comply.
Further, the result in this case demonstrates that RMAs can very meaningfully assist sponsoring employers by making sure that they are aware of the duties that are imposed on them under the migration legislation: an RMA’s work is not necessarily completed once a 457 visa has been granted!
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