Foreign workers must get ‘market rate’

Skilled foreign migrant workers entering Australia on 457 skilled business visas have been the subject of concern that the 457 visa is being used by Australian businesses as a source of cheap labour.

For that reason, The Australian Immigration Minister, Chris Evans, has introduced the new legislation to prevent foreign workers from being exploited, and to prevent locals conditions and wages from being undercut.

The change will mean those on 457 visas will be on the same wages and conditions as Australian workers doing equivalent work

The move to market salary rates means that sponsored Subclass 457 visa holders will benefit from the same terms and conditions of employment as are provided to an equivalent Australian undertaking equivalent work in the same workplace at the same location.

Immigration Minister Chris Evans said the Government had made it clear temporary skilled overseas workers should not be employed ahead of locals because they were cheaper.

He said where there is an equivalent Australian worker in a workplace, the overseas worker must be paid the same rate – and if there wasn’t, the employer must provide the Immigration department with proof that the salary they are paying that worker is equivalent to a market rate.

The 457 program was ''designed to supplement - not replace - the local workforce when there are serious skill shortages'', he said.

Under current arrangements, employers are obliged to pay workers on subclass 457 Australia visas  the minimum salary level of $45,220 or the award rate. This means overseas workers can be paid less than an Australian employee in the same workplace who may be paid at above award rates - which is the market rate.

The change apply to all new visa holders from September 14 except where annual earnings of $180,000 or above are proposed.

Visas will not be granted where the market rate is below the $45,220 threshold, which will be indexed.
There will be transitional arrangements for employers who are paying less than the market rate to existing visa holders. They will have until January 1 to begin to pay the market rates.

The Australian Immigration Minister said that small-time transgressors who failed to remedy a breach of the new law, as well as repeat offenders, would have their details published in an attempt to publicly shame them.

In addition to being publicly shamed, employers caught breaking the law could be fined up to $110,000, or receive a jail term of up to 10 years, or both.

Also, for the first time, Australian Immigration Department will gain access to the Australian Taxation Office (ATO) and other Australian Government Departments. Such access will allow the Australian Immigration Department to check if workers on 457 visas are being paid correctly the market rate.

For more information on reforms to the 457 visa programme or other visa issues, contact us via e-mail: info1@pacific-center.net or telephone  (7) 4946 4680