Printing businesses sponsoring overseas based workers to help overcome the current labour shortages in Australia will be faced with new obligations and administrative sanctions following the release of a discussion paper by the Federal Government. 

The Minister for Immigration and Citizenship, Senator Chris Evans (pictured at right), is planning to introduce new laws to help prevent the exploitation of temporary skilled foreign workers and ensure the wages and conditions of Australian workers are not undercut.

The Minister has released a discussion paper seeking stakeholder feedback on proposed reforms to the 457 visa regime following the $19.6 million commitment in the 2008-09 Budget to improve the processing and compliance of the temporary skilled migration program.

A Bill to amend the Migration Act (1958) is planned for September and it is proposed that a range of measures be introduced, including:

• Expanded powers to monitor and investigate employer non-compliance with the 457 visa scheme
• A framework for punitive penalties for employers found to be in breach of their obligations
• Improved information sharing between government agencies to improve compliance
• A redefined sponsorship obligations framework for employers of 457 visa workers and a range of other temporary work visas.

The discussion paper proposes legislation to enable specially appointed officers with investigative powers to enter and search workplaces to determine whether employers are complying with their sponsorship obligations.

The proposed powers would be similar to the powers of workplace inspectors under the Workplace Relations Act 1996.

Employers who provide false or misleading information could face penalties of up to 10 years imprisonment or a fine of up to $110,000 or both.

Administrative sanctions including the cancellation or suspension of an employers’ entitlement to sponsor 457 visa workers will remain.

The proposed legislation will enable the department to publish the names of employers found to be in breach of their obligations where non-compliances have not been remedied or for repeat offenders.

The paper proposes legislative amendments that will allow the department to share and receive information with other government agencies where that is currently not possible. This includes the Australian Taxation Office in relation to whether a visa holder is being paid the correct amount.

The intention of the Bill is to clarify sponsor obligations and provide further fair and transparent mechanisms for temporary workers from overseas.

The discussion paper also seeks feedback on additional potential obligations that sponsors may have in relation to temporary workers from overseas. Some of these potential obligations cover:

• To not use overseas workers as a means of strike-breaking
• To pay income protection insurance
• To pay the primary visa holder at least a particular amount
• To pay travel costs to Australia
• To pay travel costs from Australia
• To pay the costs associated with recruitment
• To pay the costs associated with migration agent services
• To pay costs associated with licensing and registration or similar
• To pay certain medical costs OR to pay for health insurance
• To pay education costs for certain minors

Stakeholder feedback from employers, industry groups such as Printing Industries and unions will be considered in drafting the Bill and associated regulations.

Printing Industries National Manager for Policy and Government Affairs, Hagop Tchamkertenian said that while the proposed measures are aimed at curbing the practices of rogue employers, it is important that they do not negatively impact on the vast majority of employers who do the right thing and fulfil their obligations.

"We are currently reviewing the proposed changes including the range of new obligations that may be imposed on sponsors in the future," Mr Tchamkertenian said. 

"It is crucial that the new measures do not undermine the 457 visa program by increasing the costs to sponsor workers from overseas. The Government needs to remember that in the printing industry, businesses often use 457 visas as a last resort when they have exhausted all other avenues to recruit skilled workers."

Printing Industries National Training Policy Manager, Neal McLary said the proposed reforms to 457 visas offered printing businesses an opportunity to review their overall approach to training as well as their processes and procedures for attracting skilled workers.

"Printing businesses sponsoring skilled workers from overseas face a range of obligations and associated costs that their competitors recruiting locally do not face."

"With the Federal Government now proposing to impose additional obligations on those sponsoring overseas based workers, printing businesses need to review their existing training policies to ensure that they are adequate for the evolving industry and economic climate," he said.        

Mr Tchamkertenian urged the industry to review the Government's discussion paper and provide appropriate feedback to  Printing Industries.

"Any concerns or issues that businesses in the printing industry have with the proposed changes to the 457 visa program should be conveyed to us to allow us to make proper representation to the Government," he said.

Mr Tchamkertenian said industry feedback is needed by Monday 14th of July 2008. The discussion paper is available for download below. You can send your  feedback via this link

Proposed 457 changes (pdf - 168.3 kb) The discussion paper released by the Government concerning proposed changes to 457 visa regime.