In a period of economic pressure, businesses are making hard decisions. Restructures, redundancies and performance-related exits are becoming more common, and HR teams are navigating these processes under increasing operational strain. There are specific issues when dealing with sponsored visa holders.
When an employee being terminated is sponsored to be in Australia by your organisation, the process carries additional legal obligations that sit alongside your standard Fair Work responsibilities.
This article outlines what employers need to know and do when terminating a 482 Skills in Demand visa holder.
Can my company terminate a sponsored visa holder?
Employers have the legal right to terminate any employee, including those they sponsor for a visa, provided the termination is lawful.
First, you must comply with the Fair Work Act and follow any procedures set out in the employment contract, award or enterprise agreement. Redundancy, restructuring and genuine performance or conduct issues can all be valid grounds for termination, subject to the usual procedural requirements.
So it is possible to terminate a sponsored visa holder, but there are additional obligations that apply to you as a sponsor in comparison to terminating an Australian permanent resident or citizen.
Employer obligations when terminating a 482 employee
- Notify the Department of Home Affairs
You must notify the Department of Home Affairs within 28 calendar days of the employment ending, whether the employee was terminated or resigned. This is a mandatory sponsorship obligation and applies regardless of the reason for separation.
- Understand the timelines
Once employment ends, the visa holder has 180 days to secure a new sponsoring employer or apply for another visa. If they do not, they may be required to leave Australia. This timeline begins from the effective last day of work, not the date notice was given. If you pay the employee in lieu of notice, the 180-day period starts from that payment date.
- Cover reasonable return travel costs
If the sponsored employee is leaving Australia and requests it, you are required to cover reasonable and necessary travel costs for them and any sponsored family members. The Department of Home Affairs considers the following to be reasonable and necessary: transport from their usual place of residence in Australia to their departure point, travel from Australia to the country for which they hold a passport, and economy class air travel or a reasonable equivalent. Payment must be made within 30 days of a written request. This obligation does not apply if the employee secures a new sponsor or visa. Once payment is made, you must also notify the Department within 28 calendar days.
- Maintain accurate records
Sponsors are required to keep records of any visa-related costs paid, correspondence with the Department, the employee’s work duties and locations, and training activities. Record-keeping obligations continue for two years after your approval as a sponsor lapses and you no longer sponsor a visa holder.
- Be aware of potential liability for removal costs
If your former employee overstays their visa and is removed from Australia, you may be required to contribute up to $10,000 toward the cost of their removal, minus any return travel expenses already covered.
What about redundancy?
Redundancy is permitted for sponsored visa holders on the same basis as any employee, provided the process is genuine and procedurally fair. If you choose to redeploy the worker to another role within the business rather than proceed with redundancy, a new nomination may need to be lodged with the Department of Home Affairs before the employee can legally commence in the new position.
Get sponsored employee termination right from the start
Terminating a sponsored employee involves compliance obligations that run parallel to your standard HR process. Missing a notification deadline or failing to meet travel cost obligations can expose your business to scrutiny from both the Department of Home Affairs and the Fair Work Ombudsman.
The Migration Agency works with employers and HR teams to navigate these obligations correctly. Contact us to ensure your offboarding process for sponsored employees is legally sound and operationally smooth.
