In short: A dismissed sponsored worker has 21 days to apply to the Fair Work Commission. The sponsor has 28 calendar days to tell the Department. Compensation is capped at half the worker's annual wage or $95,050 in 2026-27, whichever is lower.
Two clocks started on the same Friday
A Dandenong South transport operator called our commercial practice on Monday. They had dismissed Arun, a diesel mechanic on a 482 visa, the previous Friday, 2 October. A truck had slipped on a hoist, and the workshop manager sent him home on the spot. No warning, no meeting, no letter. The directors wanted to know whether a sponsored worker could even claim.
He can. Arun's 21 days to apply to the Commission run out on 23 October. The company's 28 calendar days to notify the Department run out on 30 October. Today is day 10.
The visa does not change who can claim
Unfair dismissal eligibility turns on the employment, not the passport. A 482 or 494 holder working for a private company in Victoria is a national system employee. The Fair Work Act asks the same four questions it asks of anyone.
| Test | What it means for a sponsored worker |
|---|---|
| National system employer | Almost every private employer in Victoria. Labour hire workers claim against the agency, not the host business. |
| Minimum employment period | 6 months, or 12 months where the employer is a small business. A contractual probation period does not shorten it. |
| High income threshold | Workers above it are excluded unless an award or enterprise agreement covers them. Most sponsored roles sit under an award. |
| Dismissal, not resignation | A forced resignation can still count as a dismissal. The end of a fixed term contract usually does not. |
One point catches sponsors out. Service with the business before the visa counts towards the minimum period. A student who became a 482 holder in the same job after 8 months was never in a probation window.
Why was the sponsored worker dismissed?
What the Commission can order, and what it does to the sponsorship
Reinstatement is the primary remedy under the Fair Work Act. The Commission looks at it first and turns to compensation only when giving the job back is not appropriate. For a sponsored worker, reinstatement has a second effect. The employment resumes with the same sponsor in the nominated occupation. The sponsor must then tell the Department that the notified end date has changed. The obligation covers a changed end date as well as the end itself.
Compensation is for lost remuneration only, never for distress. The cap is half the worker's annual wage or $95,050 for 2026-27, whichever is lower. A mechanic paid the Core Skills Income Threshold of $79,423 therefore has a cap of half that salary. The Commission can reduce an award for misconduct or for income earned after the dismissal.
The application fee is $92.70 for 2026-27, paid by the worker and waived in hardship. The employer has 7 days to respond once the Commission serves the claim. Those 7 days usually fall inside the 28 day Department window. So we draft the Form F3 response and the sponsor notification together, describing the same dismissal for the same reason.
Treat the dismissal as two files from day 1. The commercial team tests the reason and the process against sections 385 and 387. The migration team lodges the cessation notice inside 28 calendar days. Do not send a reference, a final pay or a deed that contradicts either file.
Apply inside 21 days even if your evidence is incomplete. Late applications need exceptional circumstances. The dismissal does not cancel your visa. You have up to 180 days to be nominated by a new employer or to arrange to leave. A Commission claim does not pause that window, so keep both running.
Service with the old owner can transfer with the business. A worker you inherit may already have passed the minimum employment period. The sponsorship and nomination do not transfer. Our note on selling a business with sponsored employees sets out the order of steps.
The deed of release is where the sponsor obligations bite
Most claims settle at conciliation, and the settlement is written into a deed. For a sponsored worker, three clauses need care.
The deed cannot recover any sponsorship cost. The nomination charge, the Skilling Australians Fund levy and recruitment costs stay with the business. A set-off against the settlement sum breaches the sponsor obligations. So does a promise to repay the levy. Our note on employment contracts for sponsored staff explains why the same rule governs the contract.
The deed cannot rewrite the Department's record. Parties often agree to describe the dismissal as a resignation. The cessation notice must still be lodged, and the date employment ended does not move. We align the deed with the notice, not the other way round.
The deed should deal with return travel. A sponsor must pay reasonable return travel costs if the worker asks in writing. A deed that ignores the request leaves that obligation open.
The Small Business Fair Dismissal Code and sponsored staff
An employer with fewer than 15 employees who follows the Code has a defence. The Code still requires a reason, a warning for performance and a chance to improve. Summary dismissal is reserved for conduct serious enough to justify it. The Code does not change the 28 day notification, and a Code-compliant dismissal still ends the nominated employment.
The first 180 days
- Day 0, 2 October Dismissal takes effect. Both teams open the file and secure the warning history and the incident report.
- Within 7 days of service The employer's Form F3 response goes to the Commission. It states the reason the Department notice will repeat.
- Day 21, 23 October The worker's application deadline. A late claim needs exceptional circumstances.
- Day 28, 30 October The sponsor's deadline to notify the Department that employment has ended.
- Conciliation A conciliator convenes the parties by phone. Most matters resolve here, usually with a deed.
- Day 180, 31 March 2027 The end of the worker's window to be nominated by a new employer or to arrange to leave Australia.
Before you dismiss a sponsored worker
Our commercial practice runs the Commission claim and drafts the deed. The migration team lodges the notification and advises the worker's next sponsor on timing. If a sponsored worker was dismissed in the last three weeks, speak to us before either deadline passes. Where the role has genuinely gone, read our note on making a sponsored worker redundant instead.
Figures verified against Home Affairs visa pricing as at 1 July 2026. Eligibility, the 21 days, the $95,050 cap and the $92.70 fee from the Fair Work Commission, read 12 October 2026. Sponsor notification, cost recovery and the 180 day rule from Home Affairs, read the same day.
Frequently asked questions
Can a 482 visa holder make an unfair dismissal claim?
Yes. The claim turns on the employment, not the visa. A sponsored worker with 6 months of service, or 12 months with a small business, can apply within 21 days.
Does the dismissal cancel the worker's visa?
No. The visa stays in effect. The worker has up to 180 days to be nominated by a new employer or to arrange to leave Australia. The sponsor must notify the Department within 28 calendar days.
If the Commission orders reinstatement, what happens to the nomination?
The worker returns to the same sponsor in the nominated occupation on terms no less favourable than before. The sponsor must tell the Department that the notified end date has changed. We confirm the position against the approved nomination before the return date.
Can the settlement deed require the worker to repay the SAF levy?
No. A sponsor must not transfer or charge sponsorship or recruitment costs to the worker. A repayment clause or a set-off in a deed breaches that obligation, whatever the worker agrees to.
How much compensation can the Commission order?
Half the worker's annual wage or $95,050 for 2026-27, whichever is lower. Compensation covers lost remuneration only. The Commission can reduce it for misconduct or for income earned after the dismissal.
General information as at 12 October 2026. Not legal advice. Unfair dismissal claims, sponsor obligations and visa conditions turn on your own contracts, award coverage and facts. Obtain advice before you dismiss a sponsored worker, respond to a claim or sign a deed.