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Temporary Business (Long Stay) Subclass 457

This information is largely taken verbatim from DIAC web site.

This is the most commonly used program for employers to sponsor overseas workers to work in Australia on a temporary basis. There are also special arrangements for employers in regional areas across Australia.

With this visa an employer can employ overseas workers for a period of between three (3) months and four (4) years. People employed from overseas can work in Australia for the same period of the visa, bring any eligible family who can work and study, and after entering Australia, have no limit on the number of times they travel in and out of Australia. So it has its merits.

The visa is flexible and attractive for migrants who are not wanting to live permanently in Australia. For many others, it is the only way they can get an employer will support them, although it can lead towards Permanent Residence later on, subject to other conditions being met.

The 457 (as it is known) is a simple visa that has to be administered properly, due to previous rorting of the system by a few unscrupulous employers and (mainly) overseas labour hire companies. Employers can be either Australian businesses or overseas businesses (this may be more restricted in the near future.)

Changes have taken effect from July 1 2007, most notably the requirement that workers possess at least IELTS 4.5 English skills, and employers ensure that migrants they hire have this level of English. (Ask the worker to provide proof results from their IELTS test unless they are a native born English speaker.)

To start with, your business will need to be approved as an eligible employer, and the next step is to nominate the job position, and then identify the employee (who then applies for the 457 visa in their own name)

The several steps in the process are:

Employer

  1. applies to be a sponsor to recruit overseas workers
  2. nominates the positions they want to fill
  3. recruits the overseas workers to fill the nominated positions
  4. act as a sponsors for your employees applying for a visa
  5. co-operates with DIAC's monitoring requirements
  6. meets costs and other obligations as part of the program.

    7. The numbers 1 and 3 in the employer section can be changed around, it’s often a good idea to find the worker and agree terms which may include various structures on sponsorship undertakings, and then go through the process of becoming a sponsor.

    The main reason for not doing it that way would be if there are concerns with your employer status, regarding profitability, employment records etc. In most cases, these issues can be dealt with by providing a short but well focused business plan of 6-8 pages. Refer to State Sponsorship Services for information and prices for these reports.

    Job vacancies must meet a certain formula in order for the vacancy to be accepted as genuine by DIAC.

Employee

  1. accepts the offer of employment from the employer
  2. applies for a visa
  3. meets all conditions on their visa.

To apply for this category a job seeker must:

  • be sponsored by an employer to fill a nominated position
  • have skills, qualifications, experience and an employment background which match those required for the position
  • be eligible for any relevant licences or registration required for the nominated position
  • demonstrate that they will be paid at least the minimum salary level that applies at the time a decision is made on the visa.

The Process Mapped Out

For a subclass 457 visa application there are three steps involved when a person from overseas to work in Australia:

Stage 1 - Lodging an employer sponsorship application where the employer must be approved as a sponsor.

      The employer needs to show the Company:

      • is lawfully and actively an operating business;
      • will be the direct employer;
      • has a sound business record and abides by immigration laws;
      • can show the employment will bring economic benefit to Australia;
      • will advance employee's skills with training.

Stage 2 - Employer lodging a business nomination that describes the position to be fulfilled.

      The employer needs to show the:

      • company is an approved business sponsor;
      • position relates to an occupation which meets a minimum skill set;
      • position is to be paid at or above the minimum salary level.

Stage 3 - Lodging a visa application.

      The employer needs to show the:

      • Company has an approved and current business sponsorship;
      • Company has the nominated position approved.

      The employee needs to show they:

      • have the required skills for the position;
      • are qualified for the position.

In order for Stage 3 of the 457 Visa process to be successful, Stages 1 and 2 must be approved by DIAC.

Here is the general framework of the visa:

http://www.immi.gov.au/skilled/skilled-workers/sbs/index.htm

This link covers the special arrangements for employers in regional areas across Australia.

http://www.immi.gov.au/skilled/skilled-workers/sbs/eligibility-regional.htm

These links give more information about how this visa works:

There is a minimum salary level that is required to be paid without unauthorised deductions that take it below the stated minimum. Refer to this link:

http://www.immi.gov.au/skilled/skilled-workers/sbs/occupations.pdf

Here is DIAC’s list of unauthorised deductions.

    “These salaries must not include:

    • accommodation or rental assistance, board, upkeep, meals or entertainment
    • incentives, bonuses or commissions
    • shares or bonus shares
    • travel, holidays, health care/insurance
    • vehicles or vehicle allowances
    • communications packages
    • Living-Away-from-Home-Allowance
    • superannuation contributions (either voluntary employee or compulsory employer contributions)
    • any other non-salary benefits not included in the above, with the exception of Medicare benefits received as a fee for service by medical practitioners.”

From this it becomes clear that the 457 has good flexibility in terms of who can come over and work, and processing of this visa is quicker than most other options, but the downside is that some costs are landed with the employer who then has to factor them in to working out the whole cost of recruitment.

The main thought we want to leave you with on this page is that a recruitment agent might charge you up to 25% of salary package to find this worker for you, in addition to these costs.

Hire A Migrant is a free service to employers, workers you source through us on this visa will not carry additional costs to what is listed or linked to these pages.

This site is not intended for use by either migrants or sponsors who are directly in the act of sponsoring a future employe. It is a condition of use of this site that all users acknowledge that they are not seeking migration advice for themselves as migrant or to act as sponsor of a future worker. For full legal entitlement and disclaimer for use please click here (c) Hire A Migrant Pty Ltd ACN 124 164 138 unless otherwise attributed.