Subclass 457 Visas – Cessation of Employment & Redundancy

When a project ends or a position is made redundant, there are many issues that the employer and employee need to consider and undertake.

If the employee is also a subclass 457 visa holder there are the additional matters of sponsorship obligations, notifications and the potential cancellation of the subclass 457 visa to contend with. In this article, we provide a brief overview of the issues and actions to undertake.

The Employer Sponsor

An employer sponsor of subclass 457 visa holders is required to abide by the business sponsor obligations. One of these obligations is to notify the Department of Immigration within 10 working days of the cessation of employment of the subclass 457 visa holder’s employment. Where an employee visa holder is made redundant or their position (such as a fixed term contract position) ends, this would constitute a cessation of employment.

Once the notification of cessation of employment has been made to the Department of Immigration by the employer sponsor, the Department of Immigration will proceed to prepare a letter of notification of intention to cancel the subclass 457 visa. This letter is sent to the subclass 457 visa holder employee directly.

From this stage, communication is usually between the Department of Immigration and employee only. It is important to note that the Department of Immigration is responsible for the cancellation and approval of any visas, not the employer sponsor.

The Employee Subclass 457 Visa Holder

Where an employee subclass 457 visa holder’s position with the employer sponsor has concluded or been made redundant, it is advisable that the employee visa holder put their effort into gaining a new job as soon as possible, unless they are planning to depart Australia.

It is important to note that under policy, the Department of Immigration should give the employee visa holder 28 days to find a new sponsor or depart Australia, before consideration is given to cancelling the visa.

It is important not to waste the Department of Immigration’s time, however we would advise that the employee visa holder inform the Department of Immigration of current activities regarding either an intention to leave Australia, or current activities in seeking a new job.

The Department of Immigration case officers generally do not want to cancel visas where it is not necessary and it is useful to provide the Department of Immigration with your progress in obtaining a new job.

The New Employer Sponsor

From an Australian migration perspective, where the employee subclass 457 visa holder has been made redundant or their job has concluded, a new employer need only lodge and have approved a new nomination application in order for the employee visa holder to start work for the new employer sponsor.

A new employer sponsor needs to hold a valid business sponsorship in order to lodge a new nomination to sponsor the employee visa holder. The new nomination application will need to correspond with the visa holder and address the relevant criteria such as confirmation that the position meets the market rate salary and equivalent employment terms and conditions.

Apart from the employee visa holder’s qualifications, skills and experience, including Australian work experience, the main advantages for the new employer and the employee visa holder are that a new subclass 457 visa does not need to be lodged again and the employee visa holder is already settled in Australia and available for face to face interview. Another advantage is that the Department of Immigration in Perth is currently processing subclass 457 nomination applications within 2 to 5 days which is below the standard processing time.

For further information, please contact Tim Harper, Manager – Interpeople Migration Services.

Level 1, 10 Ord Street, West Perth WA 6005

t. +61 (0)8 9389 2800 | m. +61 (0)407 605 960 |

Please note: the above is general information only and does not constitute advice. We recommend that employers and employees seek advice regarding their specific circumstances in relation to all Australian visa and immigration matters.