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HR and compliance teams throughout Australian organisations must adopt a strong attention to detail as enforcement activities around immigration employment increase.
Enforcement activity from the Department of Home Affairs is continuing to ramp up over 2025, off the back of the department conducting 1,706 site visits between July and December 2024.
Just weeks ago, around 40 businesses throughout Melbourne that employ migrant workers were hit with surprise inspections conducted by the Fair Work Ombudsman (FWO) in conjunction with officers of the Department of Home Affairs – with the businesses targeted primarily residing in the food sector, including fast-food chains, restaurants, and cafes.
These recent examples are only a snapshot of the increased scrutiny that Australian businesses that employ migrant workers will be under – regardless of their sector or industry.
Considering the severity of the consequences that non-compliance can bring, it’s crucial that businesses ensure they are operating within the legal parameters. During the July to December period in 2024, more than 160 businesses faced adverse actions, with 11 receiving infringement notices totalling over $737,718.
“These penalties are not just minor fines – they can have serious financial and operational consequences for businesses,” said BDO Migration Services principal lawyer Rebecca Thomson.
“These penalties are not just minor fines – they can have serious financial and operational consequences for businesses.”
“For many employers – particularly in high-demand sectors – the risks of non-compliance are becoming increasingly evident.”
According to Thomson, the main culprits for non-compliance often boil down to verifying worker eligibility, maintaining accurate records, and meeting ongoing sponsorship obligations – warning businesses that accidental breaches can still lead to substantial fines and reputational damage.
“Many businesses assume that once a visa is granted, their compliance obligations end. However, ongoing compliance is essential to avoid costly enforcement action,” Thomson said.
“Failure to meet documentation and reporting requirements can lead to serious repercussions, including significant fines, reputational damage, and even restrictions on future sponsorship.”
Thomson offered businesses numerous approaches that can assist them with ensuring that they are operating within the legal parameters, which includes providing the HR team with adequate training to stay on top of these obligations.
“It’s imperative to regularly review sponsorship obligations to ensure all visa conditions are met, including proper record keeping and reporting of any changes in employment conditions,” Thomson said.
“Conducting internal audits is also essential, as businesses should routinely assess their workforce compliance to identify and address potential risks before an inspection occurs. Employers must also confirm that all foreign workers hold valid visas with work rights matching their employment conditions.
“Providing training for HR and compliance teams to keep staff informed about sponsorship obligations and compliance risks can help prevent inadvertent breaches. Additionally, seeking professional legal advice is crucial, as immigration laws are complex and evolving, and working with specialists can help businesses navigate their responsibilities and minimise risks.
“Compliance is no longer just about avoiding fines; it’s about protecting the ability to sponsor workers, maintaining a good reputation, and securing long-term workforce stability and should be viewed not merely as a legal obligation, but as a strategic priority that contributes to business continuity and long-term success.”
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Compliance often refers to a company's and its workers' adherence to corporate rules, laws, and codes of conduct.
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
