What Happens If a Sponsored Employee Resigns?

It is normal for individuals to move between roles to grow their careers every day. However, if you are in Australia and on an employer-sponsored visa, such as the Skills in Demand (SID) (Subclass 482) or the Skilled Employer Sponsored Regional (SESR) (Provisional) (Subclass 494) visa, resigning is more than a career move. There are many myths about what happens when a sponsored worker quits. Some believe they must leave the country immediately, while others think they are locked to their boss for the period. However, that is not usually the case.

The Employer’s Immediate Obligation: Notify the Department

The moment an employee’s resignation is accepted, the clock starts for the employer. Under Australian migration law, the sponsor must notify the Department of Home Affairs (DoHA) within 28 days of the employee’s last day of work. Failure to notify the Department is a breach of sponsorship obligations and can lead to fines for the business. Once the Department is notified, they will officially record that the visa holder is no longer working in their nominated position.

The Employee’s Safety Net: The 180-Day Rule

For the worker, the most important thing to know is that your visa is not cancelled the day you resign. Under the current policy, you, as the visa applicant, have a period of up to 180 days (approximately 6 months) to resolve your status. During this window, you must either:

Find a new employer to sponsor you;
Apply for a different visa subclass; or
Make arrangements to leave Australia.

Now, you have unrestricted work rights during the grace period. To support yourself while you look for a new permanent role, you can work for any employer in any industry—even if it is not the occupation listed on your visa. Note that the visa applicant is allowed a total of 365 days of ceased employment across the entire period of your visa. This means you can change jobs multiple times, provided you don't exceed the total one-year limit.

Moving to a New Sponsor: Lodgement vs. Approval

If you find a new business willing to take over your sponsorship, you no longer have to wait months for a new visa grant to start your new role. As soon as your new employer lodges a new nomination application with the Department within the 180-day grace period, you can legally begin working for them in your nominated occupation. This lodgement-based work right is designed to help skilled migrants move quickly into new roles where they are needed.

What Happens to Your Path to Permanent Residency (PR)?

Resigning can affect your timeline for PR, especially the Employer Nomination Scheme (Subclass 186) - Temporary Residence Transition (TRT) stream. The SC186 (TRT) requires you to work for your sponsor for a specific period of 2 years as of today. If you resign, your work experience with your new employer can still be counted toward the 2-year requirement for SC186 (TRT).

Your Resignation Checklist

For Employees:

Confirm how much time is left on your current visa through VEVO.
Keep a record of your official last day of work.
Use your 180-day grace period wisely to find a sponsor who aligns with your PR goals.
Understand how leaving will affect your specific pathway to PR.

For Employers:

Get the resignation in writing.
Ensure your HR team notifies the Department via the sponsorship portal within 28 days.
Ensure the worker is paid all entitlements, including pro-rata leave.
Speak with an immigration lawyer if you are unsure about what to do next.

Read our clients’ testimonials on Agape Henry Crux and Accredited Specialist in Immigration Law, Jason Ling.

How Can Agape Henry Crux Help You?

Our team of immigration lawyers at Agape Henry Crux can provide tailored and creative professional advice and visa strategy to give you the best chance of success in meeting your visa goals. The team works closely with two of our Accredited Specialists in Immigration Law who specialise in complex visa matters. We recommend booking a Migration Planning Session with our team by calling 02 8310 5230 or emailing us at info@ahclawyers.com to arrange a time.

We speak fluent English and Mandarin. If this isn’t your language, we can also help you arrange an interpreter.

Our founder and principal lawyer, Jason Ling, is recognised in the 2026 edition of The Best Lawyers in Australia™ and the 2027 edition of The Best Lawyers in Australia™. Agape Henry Crux is named as Best Immigration Law Firm 2025 - Sydney by APAC Insider Awards and in the 2027 edition of The Best Law Firms™ - Australia.

This article/presentation (“publication”) does not deal extensively with important topics or changes in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you find this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances, please contact our office.

Client Testimonials

….we call it Support Network

As navigating through the immigration law process may be difficult, our former clients have agreed to share their experiences through telephone chats, emails and meetings in person.

These are their stories…

Our Employer-Sponsored Visa Grants