On 20 May 2015, the Federal Court of Australia handed down the
largest ever court imposed fine for breaches of the Subclass 457
business sponsorship program to Choong Enterprises. An operator of
restaurants and cafes in Darwin, the company acted as a sponsor for
10 employees from the Philippines, who travelled to Australia on
457 visas.
A 457 business sponsor's primary obligation is to ensure
that the sponsored employees are employed the same on terms and
conditions to those of an Australian employee for an equivalent
role in the same position.
Not only was Choong Enterprises not paying entitlements such as
loadings, sick leave and superannuation contributions, it was also
paying below the award minimum at approximately $12 per hour. In
addition to award minimums, the Migration Regulations also provides
a minimum salary threshold of $53,900 per annum. In this case, the
salaries being paid by Choong Enterprises to their 457 visa holders
($45,220 per annum) was below
