You've sponsored a skilled employee. They've been with you for a while, but now they've handed in their resignation. So what happens next?
When a sponsored worker leaves, it is not just an HR matter. It triggers a number of legal and immigration obligations that employers must handle carefully and quickly.
Here is what you need to know, and what to do, if a sponsored employee resigns or departs earlier than expected.
1. You must notify the Department and quickly
If your sponsored worker resigns, the first and most important step is to notify the Department of Home Affairs. You generally have 28 calendar days to report the change. This is a strict requirement.
You can do this through the online ImmiAccount or via a formal email to the Department, depending on how the original nomination was submitted.
Do not wait until you process their final pay or replacement hire. The clock starts ticking as soon as the employee stops working in the sponsored role.
2. You may need to cancel or vary the nomination
In most cases, the visa itself remains active after the employee leaves, but the nomination, which ties the person to the specific role and employer, becomes invalid.
If the same position will be filled by another candidate, you may need to submit a new nomination. If the role is no longer required, the sponsorship arrangement for that position should be formally closed off.
Keep a clear record of whether you are replacing the person or closing the role entirely. This may be relevant for future sponsorship applications.
3. You are not responsible for the person's visa after they leave but you should still document the end
Once a sponsored employee leaves your business, you are no longer responsible for their visa. However, the Department may still review your compliance history in future audits or applications.
It is good practice to keep written confirmation of:
- The resignation or end of employment
- Your notification to the Department
- Any final pay and entitlements
A clear paper trail helps protect you if there are future questions about the visa or sponsorship history.
4. There is no requirement to cover flights unless the employee requests it
Many employers are surprised to learn that you are only required to pay for the employee's return travel if they make a formal written request. If they resign and choose to stay in Australia, you do not have to offer or pay for flights.
However, if they do request return travel, the cost must cover travel to the employee's home country (or another agreed destination) for them and any sponsored family members.
Have a standard process for dealing with flight requests so nothing gets missed.
5. Be mindful of future sponsorship implications
The way you manage exits matters. The Department may consider your compliance history when reviewing new sponsorship applications. Failing to notify changes, keeping poor records, or breaching conditions could impact your ability to sponsor workers in the future.
Treat each departure as part of your compliance framework, not just an HR handover.
What if the employee wants to switch employers?
If your sponsored employee wants to take another job with a different business, they must go through a new nomination process with the new sponsor. They cannot simply transfer without approval.
Until that process is complete, they are not lawfully allowed to work for the new business.
Tip for candidates: Encourage your visa holder to seek advice before making any job move. A poorly handled transition can put their visa at risk.
Need help managing a departure?
Roam works with employers across all industries to help navigate sponsorship compliance, from onboarding to exit. If you have questions about what to do when a sponsored employee leaves, we are here to help.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
