Allegations of labor trafficking


Author: Craddock Murray Neumann Lawyers

Publish Date: Jul 01, 2007

The Federal Government has rejected outright a recommendation by the US State Department regarding ‘allegations of labor trafficking’ in connection with the temporary skilled 457 visa.

Immigration Minister Kevin Andrews said the recommendation, contained in the US State Departments 2007 Trafficking in Persons Report "appears to be ill informed in respect to the purpose of the 457 visa and the obligations placed on employers who use the scheme."Although the State Department placed Australia in the top tier of nations taking firm action against people trafficking, it warned Australia to pay more attention to allegations of labour trafficking under the 457-visa scheme – particualry with regards to sex-slavery.  The US State Department Report blacklisted 16 nations (including Iran, Kuwait, Burma, Cuba and North Korea) for turning a blind eye to the human trafficking trade in sex and labour slaves, estimating that 800,000 people each year are trafficked across international borders and forced into slavery and prostitution.

However the Minister said that if there is any allegation of an employer not complying with the law these claims can and should be reported to the Workplace Ombudsman and the Department of Immigration and Citizenship also investigates any allegations made against employers.

The Australian Government recently committed an additional $85.3 million over the next four years to maintain the 457 visas scheme, and to ensure that employers complied with the strict guidelines of the visa.The Government has also committed to introducing new civil penalties under the Migration Act 1958  for organisations that breach sponsorship obligations.

What is the 457 Visa?

The 457 visa is designed for employers who would like to employ overseas workers to fill nominated skilled positions in Australia. Under the Migration Act 1958,employers can employ overseas workers for a period of between three months and four years, and bring any eligible secondary applicants with them to Australia – secondary applicants can work and study after entering Australia, have no limit on the number of times they travel in and out of Australia. A minimum skill level applies to all postitons to be filled under the 457 visa, and there are four major occupation groups – managers and administrators,professionals, associate professionals, tradespersons and related workers.

If the visa application for a temporary visa is approved, employment is subject to visa requirement  8107, which means the employee must not:

  • Cease working for the employer who sponsored them (that is, become unemployed or change employer) work in a different position other than the position that was nominated in the visa application.
  • Work for another person or for themselves while working for the sponsor.
  • If an employee wishes to change employer, a new sponsorship and visa application will be required.

Under recent Federal Government Reforms, employer compliance has been targeted to ensure that the small numbers of employers who intentionally misuse the system are investigated and face significant penalties for any breaches of the system. The Migration Act 1958 has been amended to ensure employers of skilled temporary overseas workers face tougher penalties if they breach their sponsorship obligations, and new civil penalties will apply, including fines for those employers who commit the most serious offences. These offences will relate to such matters as failure to pay the minimum salary level, using workers in unskilled jobs, or behaving in ways that are contrary to the intentions of the Act.

The Department of Immigration and Citizenship will also be given stronger powers to enforce employer compliance with the 457-visa programme, including the power to conduct unannounced audits of employers and their premises.

This will be complemented with additional powers for the Office of Workplace Services to investigate breaches of the Minimum Salary Level. The Australian Government will also put in place formal arrangements for the fast tracking of applications from those employers who have a strong and demonstrated record of complying with the 457 visa programme. Applications lodged by fast-tracked employers and their overseas personnel will be priority processed, helping to streamline access to skilled workers.


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