Wednesday 30 November 2016

Changes to 457 scheme on the way


It seems that every few years the 457 temporary work visa comes under intense parliamentary and media scrutiny, and we are now at that point again.

In the past few weeks we have seen an intense media campaign highlighting alleged rorts of the system by unscrupulous employers. In addition, possibly reflecting elements of the political agenda of Donald Trump, the opposition leader, Bill Shorten, has introduced a private members bill to review the 457 visa system.

The Migration Amendment (Putting Local Workers First) Bill 2016, calls for stronger testing, stricter licensing criteria for 457 workers and more restrictions for employers.

Not surprisingly, the ACTU is strongly in support of this bill, arguing that the system needs a complete review notwithstanding the fact that a comprehensive review was only recently finalised.

The biggest area of attack on the current scheme is the list of eligible occupations for 457 purposes. This list currently includes 651 occupations which many argue bears little resemblance to areas of general skills shortage.

Adding to the pressure for a further review system is the evidence of exploitation which has surfaced as a result of the 7 Eleven scandal, and more recently, potentially Caltex as well. Typically, employees of these organisations have been either 457 holders, backpackers or students with work rights, and there has been concern that in many cases employers have forced people to work for sub par wages and conditions with veiled threats of possible visa violation charges, and possible deportation if they do not accept terms which have been offered.

A recent statement by the Minister in Parliament makes it clear that the list of occupations will be looked at. Possibly we will also see more stringent labour market testing being introduced in the future.

Employers contemplating sponsoring someone for a 457 visa, or workers hoping to be sponsored should think about making an application as soon as possible prior to any changes being introduced.
 
 

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