457 Work Condition 8107

From 1 July 2024 visa conditions 8107, 8607 and 8608 are changing to help tackle worker exploitation and drive productivity as was outlined within the Migration Strategy.

Temporary Work (Skilled) (Sc 457) visa holders, Temporary Skill Shortage (Sc 482) visa holders and Skilled Employer Sponsored Regional (provisional) (Sc 494) visa holders who stop working with their sponsoring employer will have more time to find a new sponsor, apply for a different visa or arrange to depart Australia.

These visa holders will have up to:

180 days at a time, or
a maximum of 365 days in total across the entire visa grant period.

During this time, visa holders can work for other employers. This includes work in occupations not listed in their most recently approved sponsorship nomination. This will ensure that visa holders can support themselves while they look for a new sponsor.

Unless exempt, a visa holder cannot work for another employer unless they have ceased work with their sponsoring employer. Visa holders must remain in their nominated occupation while working for their existing sponsor.

Sponsors must still let the department know if there is any change in situation within 28 days. This includes ceasing sponsorship or if a visa holder resigns.

Visa holders must not do any work that is inconsistent with any licence or registration needed for their nominated occupation. This includes any conditions or requirements they are subject to.

The changes apply to existing visa holders, as well as those granted a visa on or after 1 July 2024. Any periods a visa holder stopped working for their sponsor before 1 July 2024 will not count towards the new time periods outlined above.

The main 457 visa holder is subject to the 8107 work restriction.

The work restriction comes into effect once a nomination by an employer is approved. Once this happens, the 457 holder can only work for the nominating employer in the occupation which is specified in the nomination.

There are only a few exceptions to this rule:

If the employee is employed as a general manager or medical practitioner; or
The employee needs to serve out a notice period with the previous employer; or
The employer is an “associated entity” of the sponsor – this would include subsidiaries, parents and sibling companies

If the person ceases employment, this can only be for a maximum of 60 days before the 457 holder is considered to be in breach of their visa conditions and subject to visa cancellation.

457 visa holders must commence work within 90 days of arrival in Australia, otherwise they will be in breach of condition 8107.

If licensing or registration is required for the employee to work in their occupation in Australia, then the employee must obtain the necessary licensing or registration before commencing work.

CHANGING EMPLOYERS ON A 457 – EXAMPLE

As an example – if Bob is employed by Company A on a 457, and obtains a new job with Company B, the process would work as follows:

Company B would apply for a nomination for Bob
Once the nomination is approved, Bob could work for Company B. Bob would not need to apply for a new 457
If Bob then gives notice to Company A, he can serve his notice period with Company A before working with Company B
Note, however, that if Bob gives notice too early and the nomination takes some time to come though, he may be in breach of the 60 day limitation on being out of work

The above process avoids the necessity of applying for a new 457, thus avoiding paying the lodgement fee for the visa and the 457 holder redoing medicals.