RCSA calls for clarification on 457 visas

The peak body for the Australian recruitment and on-hire industry has called for more accuracy in the debate around the use of 457 visas, claiming the on hire industry is being misrepresented in some forums.

The Recruitment and Consulting Services Association (RCSA) argues that some political debates and media reports on alleged abuses of the system have been inaccurately blaming on-hire (also called labour-hire) companies.

ìThere are in fact significant differences between Australian employers, Australian on-hire companies and off-shore recruitment agencies ñ all of whom have been implicated in the current debate without appropriate checks. Not only do Australian on-hire firms use just a small fraction of the 457 visas issued, none of them have been shown to abuse the system in any way,î Julie Mills, CEO of RCSA said.

The RCSA points to media reports about a Queensland company Dartbridge Welding abusing 457 visas and mistreating Filipino workers..

ìWhile any claims against Dartbridge are yet to be established, some reports have wrongly called the company a labour-hire firm. This is incorrect, as the company is in fact a direct employer,î Ms Mills said.

Australian on-hire firms recruit and employ offshore skilled workers using 457 visas, then place workers in client sites, and remain their employer.

Ms Mills said the number of Australian on-hire companies using the visas in this way has been overstated in much of the debate.

ìAccording to the Department of Immigration and Multicultural Affairsí(DIMA) figures, the visas issued by Australian on-hire companies make up only a small fraction of the almost 40,000 granted in total between 2005-2006.

ìThere appears to be a tendency to lump both Australian and off-shore recruitment and on-hire firms into the same basket, but there is a world of difference.

ìAustralian firms are bound by Australian laws, and the vast majority are also RCSA Members, bound by our Code of Professional Practice. Foreign recruitment firms have no such limitations, and indeed, the Government cannot impose our laws on a firm operating outside Australiaî, she said.

However, Australian employers who use off-shore recruitment firms to source workers from overseas, but then directly employ them upon arrival, have obligations under Australian law.

ìIf these Australian employers are abusing the system, they are subject to Australian workplace laws, and audits by DIMA. If they do the wrong thing they will be penalised, and RCSA Members advocate robust penalties, including fines, for companies that breach the rulesî, Ms Mills said.

According to the RCSA, the recruitment and on-hire industry in Australia is using 457 visas for the purpose they were designed ñ to plug skills shortages when no Australian workers can be found.

ìUnfortunately there may be a small number of unscrupulous operators, and currently, we are all being tarred with the same brush,î Ms Mills said.