The Federal Government has announced the first ever termination of a labour agreement after the Department of Immigration and Citizenship (DIAC) revoked the rights of a Victorian on-hire company’s right to recruit 457 visa holders.

 

Federal Minister for Immigration and Citizenship, Chris Bowen, said the agreement was terminated after the company was found to be employing its subclass 457 visa workers on a casual basis, underpaying them and providing false and misleading information to the DIAC.

 

“The Government will not tolerate abuse of the skilled migration program and this termination sends a strong message to companies that they should fulfil their obligations under their agreement,” Mr Bowen said. 

“Companies found to be doing the wrong thing may be fined or suspended from using the program or, in serious cases such as this, their labour agreement may be terminated or court action taken.”

The visa holders affected by this termination will be given a reasonable period of time in which to seek alternative employment with another approved sponsor. 

The Victorian company’s breaches were uncovered during a monitoring exercise by DIAC. The department has also increased investigations into the standard 457 visa program.