Visa sponsor fined for underpaying worker

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Created on Tuesday, 03 July 2012 13:37

Written by Editorial staff

Employers are being reminded to make sure they comply with all necessary workplace legislation when sponsoring those on 457 visas, following a high-profile fine in Victoria.

The Federal Magistrates Court found the employer to have underpaid their sponsored worker by $10,000, therefore making them in breach of the Migration Legislation Amendment (Worker Protection) Act 2008.

Sahan Enterprises Pty Ltd was discovered to have failed on two of its obligations - namely to pay equivalent terms and conditions and to keep hold of appropriate pay records.

Workers on 457 visas who suspect their needs are not being met by their employer can gain advice from migration consultants on how best to proceed.

A spokesperson from the Department of Immigration and Citizenship (DIAC) explained that this should serve as an example to sponsors that they must fulfil their obligations.

"This is a timely reminder that Australian workplace laws apply universally to all. Sponsors found to be doing the wrong thing by the department’s inspectors may be subject to administrative sanctions, an infringement or civil litigation, as in the case of Sahan Enterprises," they commented.

The company will now be forced to pay a pecuniary penalty of $35,000 as well as costs of nearly $11,000, which should serve as a deterrent to any employer who is considering flouting the rules.

Failures were identified by the DIAC during its monitoring process, leading to the issuance of an infringement notice and request for the visa holder to be paid their outstanding wages.

However, Sahan Enterprises still failed to comply and so the case was referred to the courts for a civil penalty.

"While other cases have been filed, those matters have been settled via alternative means to the satisfaction of the department and any sponsored people involved," emphasised the DIAC spokesperson.

They were keen to point out that the vast majority of sponsors are compliant with the necessary regulations, but an example needs to be made when they do not to ensure skilled visa programs maintain their integrity.

The DIAC's compliance team recently arranged the removal of 19 suspected illegal farm workers in northern Victoria, who were transferred to Adelaide Immigration Transit Accommodation pending further investigation.

As a result of the discovery, the DIAC stressed that it is a criminal offence to knowingly or recklessly allow a person to work illegally in Australia, or to refer them for a position elsewhere.