Migration compliance a headache for franchisors

SYDNEY: Major franchisors are among a growing number of Australian companies facing serious difficulties in complying with recently tightened migration deadlines, and fear this will adversely impact their future workforce planning needs. The concern is greatest among local franchise organisations with parent companies overseas, which ‘import’ international talent to strengthen or streamline the system in Australia.

Companies sponsoring employees to migrate into Australia may lose their ability to sponsor their employees internationally into Australia if they fail to comply with recent Business (long stay) Visa-Subclass 457 migration legislation (457 Visa).

Even though the greater obligations came into force on 1 July 2004, employers sponsoring assignees (457 visa holders) are still struggling to comply with the onerous obligations due to the complexities of understanding the regulations, according to KPMG Migration Group executive director, Karen Waller.

The 457 Visa is a visa class regularly used by companies to sponsor expatriates to work in Australia as temporary residents for a maximum period of four years.

“We are hearing from various companies that they are struggling to comply with the requirements of the amended 457 Visa migration legislation. Further, they are concerned that they may be unable to meet their workforce planning needs in the future if they are not able to comply with these new rules,” Waller, who recently conducted briefings on migration regulations in Sydney, Melbourne and Perth, says.

“Under the new regulations companies must now notify the Department of Immigration Multicultural and Indigenous Affairs (DIMIA) of any change in circumstances that may affect a business’ capacity to honour its sponsorship obligations,” Waller explains. “Companies must also cooperate with DIMA’s monitoring of a business or of any sponsored persons. Failure to comply means DIMA has the power to cancel business sponsorship approval as a sponsor, bar the business for a specified period from making further applications for approval as a sponsor, and cancel the visas of the assignee and family members.

“The interpretation of the recent legislation can be very broad and companies are concerned that DIMA will also take any failure to comply with these obligations into account in assessing any future sponsorship applications made by the business.”

Other obligations to comply with include, notifying DIMA within five working days after an expatriate ceases to be employed; meeting repatriation costs of travel for the expatriate and family members; and payment of all medical or hospital expenses for an expatriate (other than costs met by health insurance arrangements or prior arrangement with the expatriate to meet those costs).

“It is imperative that companies take these amended migration regulations seriously, especially those companies and industries that are reliant on importing talent from overseas,” Waller continues. “It is also vital that companies are well educated and aware of potential migration implications in relation to the recent regulations.

“Individual work contracts need to be reviewed to ensure they include the adjustments to the migration rules. Furthermore, companies need to review their human resource policies and internal corporation policies to ensure they also encompass the new migration rules.

“From our recent briefings on migration regulations, it is evident that companies need to understand the broad interpretation of the 457 Visa migration legislation to be able to meet their workforce planning needs.”

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