The media and unions have begun a widespread campaign against the lifting of the cap on the number of workers that employers can bring into Australia on the sc457 visa. This goes against the view of both the coalition government and the business community who maintain that s457 program is targeted at specific skills shortages and that employers need more flexibility and less red-tape at a time of economic volatility. How do you fill the job gap?

According to parliamentary documents, the sc457 program is “driven by employer demand, and built on the premise that it does not undermine job opportunities for Australians. It allows employers to access overseas workers where a genuine skill shortage exists or, in effect, where a suitably qualified Australian worker is not available.”

The parliamentary paper by Gareth Larsen (The subclass 457 visa: a quick guide), also states, “Businesses must make a commitment to meet the prescribed training benchmarks for the program, which require an ongoing commitment to training activities for Australian citizens and permanent residents, and that at least 75 per cent of their workforce are Australian residents or citizens. Employers must attest to having a strong record of, or commitment to, employing local labour and non-discriminatory employment practices. Employers must pay employees a rate equivalent to comparable local wages, and must not underpay their employees or deduct money without the employee’s consent for such purposes as rent or board. Employers must also provide a clear understanding of the skills and experience required for the position, and identify where the employee will be working.”

The Migration Alliance notes that the sc457 program has strict guidelines and places onerous obligations on business sponsors. The program is aimed at occupations and industries which have a skills shortages as determined by extensive research by the Department of Employment and related agencies. 

Recent DIBP figures indicate there are 90 780 primary sc457 visa holders in Australia of whom almost two-thirds are categorised as professionals and managers. Almost half of all sc457 visas were granted to foreign workers in the accommodation, telecommunications and healthcare, whereas the projected job-cuts are largely in manufacturing, retail and government sectors. Caps across the board on s457 will thus hurt growing businesses.

The Migration Alliance notes that it is likely that stricter monitoring of business sponsors may follow to help maintain the integrity of the sc457 program which remains essential to many industries and regions that rely on foreign workers. Accordingly, business sponsors should take note and ensure that they review their obligations and maintain full and proper records that clearly set out their compliance with the sponsorship obligations. Business sponsors should seek professional migration assistance, if need be, to help set up systems to ensure proper compliance with their sponsorship obligations.