What Records Must Employers Maintain for Sponsored Employees? A Guide for Standard Business Sponsors

Introduction

If your business holds a Standard Business Sponsorship (SBS) approval to employ overseas workers under the TSS 482, ENS 186, or other skilled visa programs, you are legally required to maintain detailed records for each sponsored employee.

Maintaining accurate and up-to-date records is not only a legal obligation under the Migration Regulations 1994, but also a crucial aspect of remaining compliant with both the Department of Home Affairs and the Fair Work Ombudsman.

In this article, we outline the essential records you must keep, how long to retain them, and the consequences of failing to comply.

Why Record-Keeping Matters for Standard Business Sponsors

The Department of Home Affairs conducts compliance monitoring and audits to ensure sponsors are upholding their obligations. Inadequate or missing records can lead to:

• Sponsorship cancellation
• Civil penalties and fines
• Ineligibility to sponsor in the future

Good record-keeping practices demonstrate that your business:

• Is paying sponsored employees lawfully
• Is offering terms equivalent to Australian workers
• Is not abusing the visa program

What Records Must Employers Keep?

As a sponsor, you must maintain the following records for each sponsored employee. These must be in English, easily accessible, and kept for five years, even if the employee has ceased employment.

1. Employment Records

• Copy of the signed employment contract
• Job description and position title
• Start and end dates of employment
• Terms and conditions (e.g., hours of work, leave entitlements)

2. Payment and Payroll Records

• Payslips showing wages, superannuation, and deductions
• Bank statements or remittance evidence of salary payments
• Timesheets (if applicable)
• Records showing the employee is paid at least the nominated salary or the Award minimum—whichever is higher

3. Work Location and Role

• Records of where the employee performs their duties
• Any role changes, promotions, or relocations
• Documentation of duties actually performed and any changes to tasks

4. Leave and Absence Records

• Records of annual leave, personal leave, and unpaid leave
• Documentation showing approval of leave by the employer
• Any unauthorised absences or abandonment of employment

5. Training and Qualifications

• Copies of qualifications and licenses (if relevant)
• Records of any on-the-job training or development activities

6. Notification Records

• Evidence of compliance with notification obligations, such as informing the Department of:
  • Ceasing employment
  • Business restructuring
  • Change in job duties or salary
• Copies of communication with the Department of Home Affairs

7. Advertising Evidence (for Labour Market Testing)

• Screenshots or receipts of job advertisements
• Summary of applicants and reasons for hiring the visa applicant

How Long Should Records Be Kept?

All relevant records must be kept for five years from the date they are created. This applies even if:

• The sponsorship has ended
• The employee is no longer employed
• The visa holder has left Australia

Best Practices for Managing Sponsored Employee Records

• Use a dedicated HR management system or secure cloud-based platform
• Conduct regular internal audits
• Train your HR and payroll teams in migration compliance
• Seek advice from a registered migration agent or employment lawyer when unsure

Penalties for Non-Compliance

Failure to maintain required records may lead to:

• Infringement notices or fines
• Cancellation of your SBS approval
• Up to $93,900 in corporate penalties or $18,780 for individuals

In serious cases, sponsors may be placed on a sponsorship monitoring watchlist, damaging the business’s ability to hire skilled workers in the future.

Final Thoughts

Being a sponsor is a privilege that comes with serious responsibilities. Maintaining complete and compliant records is a core requirement of your ongoing sponsorship obligations. By keeping proper documentation, you protect your business, your sponsored employees, and your ability to participate in Australia’s skilled migration program.

Need help setting up compliant record-keeping for your sponsored staff? Contact VALID VISAS for expert advice and support. Contact us on  admin@validvisas.com.au or employment law professional today.