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457 visa, confusing earnings and contract negotiations


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Hi,

 

I am currently in the process of applying for a 457 visa under a specific occupation which requires that my employers pay me at least 53,900 per year. I have signed a contract with my employers but the rates I am paid are not very clearly defined in the very general contract signed over a year and a half ago. I get paid different rates depending on my role and the sites I am working each day. I also get an hourly rate increase if I'm working on any site and a daily lump sum. Additionally I am paid for the kilometres travelled between work sites. None of this is very well defined in the contract and I think some of the varying site rates are not in the contract at all.

My fortnightly payslips confuse even me to be honest. When I first looked at the requirements for the 457 I looked at my yearly earnings from my PAYG payment summary for an estimate of my earnings. I recently found out that immigration does not count travel allowances as earnings which puts me about $1000 short of the visa requirements. This could easily be made up in the yearly salary increase that is set into the contract I have currently signed but as of June my employers are negotiating a new contract with the unions which has yet to be signed off on. This leaves me with a signed contract that doesn't have rates and raises past June 2014. I am certain I would make at least 53,900 but until the contract is agreed on I don't have much in the way of evidence. As my company is an industry leader our rates play a role in determining base rates for everyone throughout the industry. This means that the new contract negotiations will likely be a drawn out process and my employers will resist the idea of drawing up a contract specifically for me. Any ideas or advice on how to handle this situation would be greatly appreciated.

 

Cheers!

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Seems very odd that you don't have clearly defined rates of pay in a contract you signed a year and a half ago. Are you already working and earning in Australia? It sounds like it from your explanation. What visa do you currently have?

 

A 457 visa is for skilled persons who are nominated to fill a required position in Australia. The employer obviously wants you in Australia otherwise they wouldn't bother with the hassle of the whole process. Yet they don't want to pay the employee the going rate for the job in accordance with the visa requirements? And they are an industry leader. This isn't making sense unless I am missing something..

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No I don't really understand either, everybody I know and work with would be very clear about what they are paid. Sill you don't have to prove to immigration your earnings every year and you believe you are at the right level, so I am not sire what the immigration issue is. If you want to get clarity over what you earn then that is another question.

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Hi,

 

I am currently living in Melbourne and on a skilled graduate 485.

When I signed my contract yearly earning weren't that much of a concern for me. The contract I signed wasn't a contract drawn up specifically for me but for hundreds of employees which outlines rates for different roles. So for example about half the time I'm paid at level 2 rates and half at level 3. Our base rate goes up by a set amount if we are working on site (which we almost always are) and we get a daily flat amount tacked on for travelling to site. We are also paid completely different base rates depending on the site type and they pay us for kilometres travelled between sites. Some of our higher base rates are the result of another company being incorporated into our works and these site base rates are not included in the original contract at all probably due to a lack of foresight. There are no rates outlined past June 2014 and we continue to work on these set rates until a new enterprise bargaining agreement is settled on. When these new rates take effect we will be back paid from June 2014.

I am currently applying for a 457.

I understand that I must be paid a set Market Rate and for my nominated and previously assessed skill that is $53,900. Proving to immigration that I make that much when my current employers are negotiating an enterprise bargaining agreement is a bit challenging though.

If my nomination is refused would a repeal be possible?

Edited by waterhyacinth666
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Hi,

 

I am currently living in Melbourne and on a skilled graduate 485.

When I signed my contract yearly earning weren't that much of a concern for me. The contract I signed wasn't a contract drawn up specifically for me but for hundreds of employees which outlines rates for different roles. So for example about half the time I'm paid at level 2 rates and half at level 3. Our base rate goes up by a set amount if we are working on site (which we almost always are) and we get a daily flat amount tacked on for travelling to site. We are also paid completely different base rates depending on the site type and they pay us for kilometres travelled between sites. Some of our higher base rates are the result of another company being incorporated into our works and these site base rates are not included in the original contract at all probably due to a lack of foresight. There are no rates outlined past June 2014 and we continue to work on these set rates until a new enterprise bargaining agreement is settled on. When these new rates take effect we will be back paid from June 2014.

I am currently applying for a 457.

I understand that I must be paid a set Market Rate and for my nominated and previously assessed skill that is $53,900. Proving to immigration that I make that much when my current employers are negotiating an enterprise bargaining agreement is a bit challenging though.

If my nomination is refused would a repeal be possible?

 

I just am really baffled as to how you don't know what you are paid, what you have been paid, what you will be paid? If you cannot find this out, I am not sure what you want anyone on the forum to do for you to be honest?

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So the rates as of June 2014 are your current rates. You can't make assumptions or expectations about future earnings just because there is a re-negotiation process ongoing.

 

Otherwise, I'm off to test drive a few Bentleys because I might be earning a few hundred thousand more next year! :-)

 

Get professional help quickly.

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There are no rates outlined past June 2014 and we continue to work on these set rates until a new enterprise bargaining agreement is settled on. When these new rates take effect we will be back paid from June 2014.

I am currently applying for a 457.

I understand that I must be paid a set Market Rate and for my nominated and previously assessed skill that is $53,900. Proving to immigration that I make that much when my current employers are negotiating an enterprise bargaining agreement is a bit challenging though.

If my nomination is refused would a repeal be possible?

 

The market rate is not $53,900, that's simply the threshold limit which the market rate cannot be below in the 457 program. The market rate is set by the terms and conditions that apply or would apply to an equivalent Australian worker and you must be paid equal to or greater than the market rate. This is to try and prevent foreign workers being used as cheap labour at the expense of Australian workers. In your case it sounds like employment arrangements come under an industry/company award rather than individual agreements so the award will set the market rate as that's what every comparable worker will be paid.

 

Only guaranteed earnings are relevant when stating how much you get paid. Doesn't matter if you get a bonus, commission, site adjustment, travel allowance etc. All you state is your base salary and then how much you are guaranteed to earn per annum as per your contract. For example travel allowances can be included if the amount is guaranteed i.e. if the contract specifies something like "You are required to travel reasonable distances to remote sites as part of this job and you will receive a minimum travel allowance of $2,000 pa", that $2,000 can be included as a guaranteed earning. In contrast if the contract says something like "You will be paid a travel allowance of $0.25 per km" it's not acceptable as there's no way of guaranteeing the amount you'll receive.

 

This is a matter for the nomination anyway which is the company's responsibility, and a company with 100's of employees really should engage the services of a Registered Migration Agent or failing that at least have a dedicated HR professional with experience of the system.

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  • 2 months later...

Hi Adam Grey,

 

Thank you for reading my post and the helpful comment. That does clarify the issue. Do you think if my company can prove that my wages are standard and that many Australian workers are paid the exact same rates it would help?

 

Our enterprise bargaining agreement is expected to come into effect in the next couple weeks. In this new agreement the bulk of our 'allowances' will be paid on holidays, sick, annual leave, etc days so I feel that these should count as guaranteed earnings.

 

Also, I think you are right, they should have a Registered Migration Agent.

 

Cheers

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