Migration changes remove ‘golden handcuffs’ for employers

Recent changes to the Migration Act have “ushered in a pivotal change” for employers, presenting both challenges and opportunities for businesses and HR teams – including the chance to “try before [you] buy” with onshore talent.

The changes

Last month, several key migration changes were introduced, via the Migration Amendment Regulations, as part of the Albanese government’s broader migration strategy.

These included, Holding Redlich migration practice director Rebecca Macmillan outlined, changed conditions for several sponsored work visas to reduce temporary migrants’ dependency on a single employer sponsor, a new Workplace Justice Visa, and a new bill to amend the Migration Act.

“The Workplace Justice Visa allows temporary migrants to remain in Australia to undertake legal proceedings or file complaints related to workplace exploitation,” she said.

“The new bill seeks to extend labour market testing requirements from four months to six months as well as annual indexation of income thresholds and the publication of a register of approved sponsors.”

Changes were also made, Macmillan continued, to the Migration Act to “strengthen protections for migrant workers reporting exploitation, making it illegal for employers, sponsors, and labour hire intermediaries to coerce or pressure temporary visa holders into breaching visa conditions or accepting exploitative work arrangements”.

Additionally, she went on, the Department of Home Affairs has “ramped up” sponsorship monitoring activities, including announced and unannounced business visits. Inspectors will check compliance, including pay rates, hours worked, and sponsorship obligations.

Taking off the ‘golden handcuffs’

Reflecting on the changes, BDO migration services principal Rebecca Thomson said that the Migration Amendment Regulations have “ushered in a pivotal change”.

The changes, she posited, have dissolved the “golden handcuffs that once bound sponsored workers to their employers”.

“This reform enhances labour market mobility, granting temporary sponsored workers greater freedom to switch jobs and reducing dependency on a single employer sponsor,” Thomson said.

For employers, she continued, the shift presents both challenges and opportunities.

“While it necessitates a more dynamic approach to talent retention, it also provides the chance to ‘try before they buy’ with onshore talent,” she said.

However, Thomson added, employers must be “acutely aware” of the increased compliance requirements.

“Significant penalties of up to $79,200 per incident can be imposed under the enhanced employer sanctions for allowing an employee to work in breach of a visa condition,” she said.

“Employers need to ensure that sponsored workers have not ceased work for more than 180 consecutive days or accumulated more than 365 days of non-sponsored work during their visa period.”

In light of this, she concluded, regular audits, diligent record keeping, and robust compliance programs “are essential to navigate these changes successfully”.