Has Covid-19 Killed Sponsorship Of Overseas Workers?

Recognition of need for overseas workers

It is estimated that between 2.1 and 2.5 million temporary workers, including working holiday makers, international students, skilled temporary workers, and family members contribute to Australia’s workforce.

Skilled workers

Australia’s reliance on temporary workers has been recognised by the Temporary Skill Shortage (TSS) (subclass 482) visa program that came into effect on 18 March 2018, replacing the previous Temporary (Work) Skilled (subclass 457) visa that also allowed businesses in Australia to benefit from overseas sourced skills. International travel has been seriously inhibited by COVID-19 and restrictions imposed by government. 

Restrictions on travel  

Due to COVID-19 restrictions on travel to Australia by temporary visa holders the sponsoring and nominating of overseas employees has effectively ceased. Exemption from this travel prohibition is obtained from the Commissioner of Border Force. Exemptions are to be given on a “case by case” basis and for compelling or compassionate reasons.  Generally and in principle this is to be for return of visa holders who were previously in Australia and were caught out by the subsequent COVID-19 travel ban, or for those who have established a business in Australia beforehand, or for partners of Australian permanent residents. It can be assumed that exemptions will not be given to newly nominated and sponsored temporary workers.  However, additional exemptions may be considered by the Commissioner for people working in critical medical services or people with critical skills (for example, medical specialists, engineers, marine pilots and crews).

Further restrictions

The Federal government has halved the number of persons permitted to enter, including Australian citizens and residents. The NSW government, while requiring all incoming persons, again including Australian citizens and residents, to a spend 14 days in quarantine in a hotel, but also now obliges them to pay $3,000 per week for one person, $1,000 per partner and $500 per child. This means that bringing in temporary workers is not only almost impossible, but will involve a minimum of 14 days delay after arrival, and expensive hotel stay.

Unemployment versus shortage of temporary workers

It is clear that COVID-19 has already had and will increasingly have an enormous impact on employment, forcing many out of work or just reducing hours. Nevertheless, there is still a shortage of temporary workers, some for rural areas where extension of working holiday makers may fill the gap, and other essential workers and skilled workers for re-opening or expanding or recovering businesses. The question is how to deal with this dilemma brought about by the conjuncture of travel restrictions and shortages of appropriate workers.

Temporary work sponsored visa holders already in Australia

Temporary work visa holders (subclass 482 and 457) who have been stood down due to the impact COVID-19 but not terminated will maintain a valid temporary visa and businesses will have the opportunity to extend their visa as per the normal arrangements. Many temporary work sponsored visa holders have been stood down from jobs and in sectors that have been seriously impacted by the COVID-19 crisis, such as in hospitality and tourism. Restaurants and tourist operators have temporarily (hopefully) closed down pending lifting of restrictions on operations and availability of tourist visas. Employers/sponsors are now able to reduce hours of work sponsored subclass 482 or 457 visa holders, contrary to previous requirements for full time (35 hours per week) employment for such visa holders.  

Employment of temporary work sponsored visa holders in Australia

Those temporary work sponsored employees (subclass 482 or 457 visa holders) already in Australia who have been stood down, had their hours reduced, who simply want to move jobs, are free and available to transfer their existing 482 or 457 visa to another employer.

As lockdowns diminish, the economy revives, and some businesses open up, need for skilled and experienced personnel may become evident – a need that cannot only be filled by Australian residents.  From this it flows that for those businesses searching for qualified persons in Australia there remains the possibility to draw on temporary workers already here and who are eager join such businesses.

Employers in Australia therefore have access skilled non-permanent residents as before, subject only to candidates already being onshore.

Requirements for transfer of employment

As before, the employer has to be registered with the Australian Department of Home Affairs as a sponsor, or take steps to register, then carry out labour market testing, with some exemptions for nationals of particular countries, and nominate the preferred candidate.  Once these steps are achieved, a temporary work sponsored visa holder can transfer their visa to the new employer/sponsor and will be able to start working for the new employer/sponsor once the new nomination has been approved. 

Further information

We will be pleased to advise further.

Our contacts are:

Hillman & Associates Lawyers

t +61 2 9232 8392

e info@hillmanlawyers.com.au

w www.hillmanlawyers.com.au

GPO Box 3449 Sydney NSW 2001

Suite 1803, level 18, 109 Pitt Street Sydney NSW 2000 Australia