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Temporary and Permanent Resident Employer Sponsored Visas – Associated Entities Provision

Written By Michael Walker
Wed, Sep 17, 2014
Michael Walker

What many Australian Employers may not realise, when considering sponsoring overseas workers on 457 visas, is the effect of the Associated Entities provisions, as contained with the Corporations Law Act of Australia and how those provisions may relate to sponsored work visas.

Section 50AAA of the Corporations Law Act provides for related bodies corporate, other than the principal. Under the Australian Migration Legislative framework, these associated entities provisions are recognised and accordingly, an Australian Business may sponsor a person to work for one its associated entities, other than the principal entity.

An example of this is where a principal business has already received approval to sponsor overseas workers on 457 visas, to fill discernible skill gaps within their business, but may also need to fill vacancies in one its other associated businesses. Under the Migration Regulations of Australia, it is possible for this to occur, providing proof of common directorship (associated persons) is provided in the nomination application, that the principal entity (the approved sponsor) is associated with another entity, for which the 457 visa applicant is to be nominated.

Under the Employer Nomination Scheme (ENS); permanent residency visa category, it is also possible to utilize the Associated Entities provisions, under the Temporary Residence Transition (TRT) stream for ENS. Providing the nomination made by the business for ENS, is consistent with the nomination made for the purposes of the original 457 visa application. That is, at the time the 457 nomination application was made by the sponsor, it indicated that the nominee was to work for an associated entity.

However, the Associated Entities provisions cannot be utilized for the purposes of a Direct Entry ENS nomination, as, under that pathway, there must be a direct link to the nominating employer.

Should you wish to enquire or seek clarification on how the Associated Entities provisions may apply to your business, for the purposes of sponsored work visas to Australia, please do not hesitate to contact one of our registered practitioners at TSS Immigration.

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