What Happens to a Sponsored Employee When a Business Is Sold?
Selling a business is a complex process involving extensive due diligence, asset transfers, and contract negotiations. However, if your business sponsors migrate workers, such as on a Skills in Demand (SID) (Subclass 482) visa, the transaction becomes significantly more complicated. A Standard Business Sponsorship (SBS) is tied to the specific legal entity that was approved by the Department of Home Affairs (DoHA). It does not automatically transfer to the new owner when a business is sold.
How It Affects the Employer (The Seller)
For the current business owner, your sponsorship obligations do not simply vanish the moment the sale is finalised.
As an approved sponsor, you must notify DoHA within 28 days of any significant changes to your business structure. This includes the sale of the business, a change in directors, or the entity going into liquidation.
You remain responsible for your sponsorship obligations toward the visa holder until one of three (3) things happens:
the employee's visa expires;
they leave Australia; or
another employer (such as the new business owner) lodges and receives approval for a new nomination to take over the sponsorship.
If the new owner chooses not to take on the sponsored employee, you may still be liable for paying the reasonable travel costs for the employee and their family to return to their home country, if requested.
Related: What happens if my sponsor loses their SBS approval while I'm on a SC482 visa?
How It Affects the Employee (The Visa Holder)
For the sponsored worker, the sale of the business creates immediate uncertainty and strict compliance requirements.
A sponsored employee’s visa is tied to the specific ABN/ACN of the entity that nominated them and their specific nominated role.
Depending on the change of business structure, for the employee to continue working in the same business under the new ownership, the buyer must have a valid or become an approved SBS and lodge a new nomination application to transfer the employee to their new entity within the employee’s 180-day grace period. Speak with an immigration lawyer for professional guidance for the transition.
If employment ceases with the original entity, the SC482 visa holder has a limited grace period of up to 180 days to find a new sponsor, apply for a different visa, or depart Australia.
What Are the Risks for Employers and Employees?
Failing to properly manage the transition of sponsored employees during a business sale carries severe consequences for all parties involved:
For the Seller: Failing to notify the Department within 28 days can result in administrative sanctions, including being barred from future sponsorships, and substantial civil penalties (fines).
For the Buyer: Allowing the sponsored employee to work for the new entity before lodging a new nomination breaches the Migration Act. This can result in heavy fines and prevent the new business from being approved as a sponsor.
For the Visa Applicant: Working for the new entity without an approved nomination outside of the 180-day grace period breaches visa condition 8607. This can lead to visa cancellation and potentially jeopardise future Australian visa applications.
Related: Is Your Company at Risk of Adverse Information for a Nomination Application?
What Are Your Next Steps?
To ensure a smooth transition and avoid legal penalties, both the buyer and seller must act proactively. Because corporate restructuring and migration law heavily intersect, professional legal guidance is essential to align the business settlement date with visa and nomination processing times. 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.
Related:
Can We Fire a Sponsored Employee? Understanding Your Obligations as an Employer
How Can a Workplace Investigation Trigger Visa Cancellation under Section 116?
How Can Agape Henry Crux Help You?
Our team of immigration lawyers at Agape Henry Crux can provide tailored, creative professional advice and visa strategy to give you the best chance of success in achieving your sponsorship, nomination, and 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 by calling 02 8310 5230 or emailing 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.
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