Friday, November 13, 2009

Sponsorship for temporary changes affecting the Australian economy

Major changes to the law relating to the sponsorship of the 457 visas for temporary workers, which came into force on September 14, 2009. The 457 Program is the way most Australian businesses available to them to bring highly skilled workers to Australia and the visa may be up to 4 years.

He was elected one of the first initiatives the new Labor government in November 2007 to significantly speed the processing of 457 visas to allow businesses to more foreign workers to Australia. At the end of 2007 there were approximately 457 holders of 65.000 in Australia. By the end of 2008 there were 457 holders of 83.000. Grants of 457 visas for 7000 per month peak in May 2008.

With the economic downturn, the Government has completely overhauled the system 457. The changes made the 457 visa much more unattractive to employers. The reason for this change was to the integrity "of the 457 program to increase the exploitation of foreign workers to avoid. It is clear that the activities of covert action to protect Australian jobs and working conditions.

1. Sponsorship Requirements

Employers sponsoring overseas, the company must first apply for approval as business sponsor. The requirements for approval is now fully re-written. The main changes are as follows:

* Further to the requirement to show a benefit to Australia in sponsoring overseas workers
* More stringent requirements for business to demonstrate training Australians in business
* To remove the option of reflecting the new technology in the training center

Of greatest concern is the need of training - the Ministry of Immigration has introduced an objective test requirement, in most cases, that at least 1% of wages and salaries to spend on training. You can not consider much, and most large employers can employ a resource special education department, not much of a problem.

However, the small businesses, to establish the training needs almost impossible. Can not rely on-the-job training or training to owners of the farm to the extent necessary. Small businesses are almost entirely on such training.

An alternative but the company does not comply with the requirement of 1% on training at least 2% of wages and salaries paid in industry training fund.

What companies are less than 12 months ago created a show that only verifiable plan on the level of expenditure necessary to achieve. However, as the company is trading for more than 12 months, has escaped from the training requirement.

The story is worse still for overseas companies wishing to establish operations in Australia. Such undertakings would normally bring high-skilled workers from abroad and letting only a few local officials. As for Australians only training counts towards the requirement these companies will be expected that spending at least 1% of wages and salaries in education Australians within 12 months after commencement of operations. The demand is very heavy, especially when it can accept several years to resolve foreign firms in Australia.

Many of the bodies what we want in Australia - at the forefront of science and technology. Employers were able to demonstrate that they use or the introduction of new technology in Australia, as an alternative to the training requirement. It is not possible after September 14, 2009

2. Market Rate Salary

The previous system required 457 workers that pay at least a certain level (MSL). The system was simple - most employees be paid at least $ 45,220 or $ 61,920 for IT professionals. Since September 2009, only the salary of the worker at least $ 180,000, the employer must prove that the employee must pay the market rate ".

If the employer can demonstrate that the Australian working in the business, paid at the same level or lower than the overseas worker, and then meet the requirement. This would require, however, offer a salary level of details of the Australian workers at the Department of Immigration - in the form of contract or pay slips. The possibility of violation of privacy for Australians working in show business.

If not, then the employer or labor survey data identifying Please support the case - however, the Department of Immigration will want to see information on salary levels for the same job at the same location in Australia. Although we had previously tested the very clear and to achieve, we have examined the subjective costs significantly-for research and employers concerned.

And the story is worse - January 1, 2010, all 457 employees (all 80,000 or so they must) be paid at the market rate or the employer could one severe penalties. Immigration Department now has extensive powers on the relevant documents requested by employers in assessing the performance of the new rules. The Department has indicated that the payroll data for each worker - whether Australian, or a request can not - to determine whether the salary paid the market.

3. Transfer to new employer

Previously it was not possible for one person on a 457 visa to work for another employer. If they wish to change employers, they would submit a new 457 visa application - this would mean paying additional fees, the completion of the new medical checks and in some cases, language tests EspaƱol.

From September it is much easier for holders to change employers 457. But the new employer must submit a nomination for the worker - that cost $ 70 - And when the nomination is approved, the employee must be working for new employer. If the employees decide to stop working for the sponsoring employer, the employee has 28 days to find a new employer to appoint them.

If they are able to find a job, they can ask the sponsoring employer to pay for return airfares for themselves and their families. Employers are not able to request the employee to the cost of recruiting or sponsoring employee compensation under the new regulations.

Although it was previously a power imbalance in favor of the employer can face, is clearly the possibility of abuse by unscrupulous employees. Employers are much less likely for the time and effort to find and employees to Australia if the employee is able to transfer only those employers through clear, simple and free on arrival to Australia.

4. Regional Sponsorship

A series of concessions in terms of minimum wages and a wider range of possible careers and were previously under the old 457 visa. Na has been scrapped now, which means that regional employers get much more difficult for overseas workers to Australia.

Conclusion

It is vital for the Australian economy, employers are able to bring highly skilled foreign workers to bring to Australia to meet skills shortages. Previously, the 457 visa-effective way to do this - it was fast, the criteria are relatively easy to understand and if not the worker, or that they had no need more, they have returned home.

The new system is much less transparent - what is clear is that the draft regulations are hastily and still much uncertainty about what are the rules. We can expect longer hours and as a result of a higher rate of refusal. Immigration Department of the intensification of enforcement actions to force seeking more documentation, better cooperation with other agencies such as the ATO and the Department of Employment and higher penalties for breaches - but the rules are less clear than ever.

Ironically it is now more attractive for employers to use employer-sponsored permanent options such as the Employer Nomination Scheme (ENS). The market require any interest to be paid, is any sponsor obligations and they are flexible in terms of training needs. However, if it is not the worker to make and it is dismissed, they would remain permanent members of the Australian workforce.

The changes at 457 caomhnaitheachta be worse - there are clear implications for smaller employers, federal employers, foreign companies want a solution in Australia and high-technology companies. They stifle innovation and entrepreneurship at a time when efforts should encourage such.

Perhaps the change is most important that the 457 visa program soon and pressure down on wages and salaries and had a positive impact on productivity, on the new changes effectively nullify this effect. All in the name of protecting Australian jobs in the short term.

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