Sponsoring an Employee: Common Pitfalls
Employers across Australia increasingly rely on skilled overseas workers to fill critical roles. However, sponsoring an employee through visas such as the Skills in Demand Visa (Subclass 482) can be a legally complex and highly scrutinised process.
Mistakes during the sponsorship process can result in visa refusals, compliance issues, fines, and reputational damage—disrupting your workforce and business operations.
Understanding the common mistakes employers make when sponsoring an employee can save time, money, and stress. More importantly, working alongside legal professionals, like the team at AIM Lawyers, can help ensure your sponsorship applications are compliant and successful.
1. Incomplete or Inaccurate Visa Applications
One of the most frequent reasons for sponsorship visa refusals is incomplete or incorrect information provided in the application. This can include:
- Missing or outdated documents.
- Errors in employee work history.
- Incorrect business financials.
- Inconsistencies between the employer’s nomination and the employee’s visa application.
How to Avoid This Mistake:
- Carefully review all application forms and supporting documentation.
- Ensure both the Sponsorship Application, Nomination Application, and Visa Application align perfectly.
- Engage an experienced immigration lawyer to ensure your submissions meet the Department of Home Affairs’ requirements.
2. Not Meeting Labour Market Testing (LMT) Requirements
The Australian Government requires Labour Market Testing (LMT) for certain employer-sponsored visas, such as the Skills in Demand Visa (Subclass 482). Employers must advertise the job vacancy in Australia before nominating an overseas worker.
Common LMT Mistakes Include:
- Not advertising for the required 28 days.
- Advertising on non-approved platforms.
- Failing to provide sufficient evidence of recruitment efforts.
How to Avoid This Mistake:
- Advertise the position on the Government’s JobActive platform and at least two other widely used job boards (e.g., Seek, Indeed).
- Ensure the advertisement runs for at least 28 consecutive days.
- Retain evidence, including screenshots and copies of advertisements.
3. Offering Below Market Salary or Non-Compliant Employment Terms
Under the Temporary Skilled Migration Income Threshold (TSMIT), sponsored employees must receive a salary of at least $73,150 per year (excluding superannuation) or the market salary rate for their occupation—whichever is higher.
For the Skills in Demand Visa (Subclass 482), different income thresholds apply depending on the pathway:
- Specialist Skills Pathway: Minimum salary of $135,000 per year (excluding superannuation).
- Core Skills Pathway: Minimum salary of $73,150 per year (excluding superannuation).
- Essential Skills Pathway: Details for salary requirements are still being finalised for this stream, but it may involve sector-specific agreements
Mistakes to Watch For:
- Offering a salary that doesn’t meet the minimum threshold (TSMIT or stream-specific requirements).
- Providing conditions less favourable than those offered to Australian employees in similar roles.
How to Avoid This Mistake:
- Review the current TSMIT ($73,150 per year) and salary thresholds for the relevant SID Visa pathway (e.g., $135,000 for Specialist Skills Pathway).
- Check salary benchmarks for the occupation before lodging a nomination.
- Provide employment terms and conditions equivalent to those of Australian workers in similar roles
4. Sponsoring an Employee for the Wrong Occupation
Selecting an incorrect occupation from the Core Skills Occupation List (CSOL) or other relevant occupation frameworks can lead to delays, refusals, or complications with the employee’s visa. Some employers attempt to nominate a role that doesn’t accurately reflect the employee’s duties—often to meet visa eligibility requirements.This is considered non-compliance and can result in visa refusal or even sanctions on your sponsorship status.
How to Avoid This Mistake:
- Carefully review the Core Skills Occupation List (CSOL) or any relevant occupation requirements for your chosen Skills in Demand Visa pathway, and select the most accurate occupation for the employee’s role.
- Consult an immigration lawyer specialising in employer sponsorship to confirm your nomination aligns with the current SID Visa requirements.
5. Ignoring Ongoing Sponsorship Obligations
Securing a visa is only the beginning of the employer’s legal responsibilities. Sponsors must comply with strict obligations throughout the employment period, including:
- Notifying the Department of Home Affairs of any changes to employment terms (e.g., salary reductions, role changes).
- Keeping accurate records of employment.
- Ensuring the employee works only in the nominated role approved under the Skills in Demand Visa (Subclass 482).
Failure to comply with these obligations can result in visa cancellation, fines, or bans from future sponsorship.
How to Avoid This Mistake:
- Familiarise yourself with your ongoing sponsorship obligations under Australian migration law.
- Schedule regular reviews with an immigration lawyer to ensure continued compliance.
Key Takeaways for Employers Sponsoring an Employee
| Mistake | How to Avoid It |
| Incomplete or Inaccurate Applications | Review documentation; Seek legal assistance. |
| Labour Market Testing (LMT) Errors | Follow advertising requirements; Retain evidence. |
| Offering Below Market Salary | Check salary benchmarks; Comply with TSMIT ($73,150) and pathway-specific salary requirements (e.g., $135,000 for Specialist Skills Pathway). |
| Selecting the Wrong Occupation | Align duties with the Core Skills Occupation List (CSOL) or other relevant occupation requirements. |
| Ignoring Sponsorship Obligations | Stay updated on SID Visa requirements; Implement compliance checks. |
| Not Seeking Legal Advice | Engage an immigration lawyer early. |
Frequently Asked Questions (FAQs)
1. How long does the employee sponsorship process take in Australia?
The processing time for a Skills in Demand Visa (Subclass 482) typically ranges between 1 to 3 months, depending on:
- The pathway chosen (Specialist, Core, or Essential Skills Pathway).
- The occupation and salary level.
- The completeness of your application.
- Whether Labour Market Testing (LMT) was conducted correctly (for applicable pathways).
2. Can my employee start working before the visa is approved?
No, an employee cannot commence work until their visa is approved.
Employing someone without a valid visa is a breach of immigration law, which can result in substantial fines and restrictions on your ability to sponsor workers in the future.
3. What is the Temporary Skilled Migration Income Threshold (TSMIT)?
The TSMIT is the minimum salary requirement for sponsoring skilled workers under the Skills in Demand Visa (Subclass 482). As of February 2025, the TSMIT is $73,150 per year (excluding superannuation).
Employers must pay the higher of:
- $73,150 per year, or
- The market salary rate for the occupation.
Pathway-Specific Salary Requirements:
- Specialist Skills Pathway: $135,000+ per year (excluding superannuation).
- Core Skills Pathway: $73,150+ per year (excluding superannuation).
- Essential Skills Pathway: Details are still being finalised for this stream
4. What happens if my employee’s visa application is refused?
If the Department of Home Affairs refuses your sponsored employee’s visa application, you may:
- Review the refusal notice to understand the reason.
- Consider lodging an appeal with the Administrative Appeals Tribunal (AAT) (if eligible).
- Review your sponsorship obligations and decide whether to submit a new nomination with corrected information.
5. Can I sponsor an employee if I run a small business?
Yes, small businesses can sponsor employees, provided they meet the eligibility criteria, which include:
- Demonstrating financial capacity to pay the employee’s salary.
- Proving a genuine need for the overseas worker.
- Meeting sponsorship obligations, including providing appropriate employment terms and paying contributions to the Skilling Australians Fund (SAF).
Need Help Sponsoring an Employee? Speak with AIM Lawyers Today
Mistakes during the sponsorship process can jeopardise your visa application and your business’s workforce stability.
Working with an experienced immigration lawyer can reduce your risk and ensure your applications are successful.
At AIM Lawyers, we assist businesses across Melbourne with:
- Sponsorship applications.
- Labour Market Testing compliance.
- Salary and occupation assessments.
- Ongoing sponsorship obligations.
Final Thoughts
Sponsoring an employee can unlock growth and fill skill gaps in your business—but the process must be managed carefully.
Understanding the common mistakes and partnering with experienced immigration lawyers can safeguard your business and ensure visa success.
Avoid the stress and uncertainty—reach out to AIM Lawyers today for a free consultation.
Note: The Skills in Demand Visa (Subclass 482) replaced the Temporary Skill Shortage (TSS) Visa in December 2024. If you applied under the TSS Visa, your application may still be processed under the previous rules. Check the Department of Home Affairs for updates.