Stella Martika and Beauty Co Assessment Answer

Q1: Has Stella, as CEO of Beauty Co, complied with the sponsorship obligations as a Standard Business Sponsor? 

Stella Martika hired many migrated workers to work within the company with the use of varied visas. Stella bought Fredrick Muller from Germany to enhance the graphic designing facets of the business with a ‘Holiday Class’ TZ subclass visa of (417), which is not at all applicable as per the regulations of the Australian sponsorship. The Visa classes enabled by the Australian Standard Business Sponsorship requirements are of two types - Temporary Skill Shortage Visa (482) and Skilled Employer Sponsored Provisional Visa (494).[1] Moreover, Stella attracted DaniPieris from Hungary to perform as an IT specialist with the use of Employer Nomination Class EN subclass (186) visa that does not apply within the Australian Territory. As per Division 2.19 of the Migration Regulations, it is entirely illegal for Stella to hire such individuals to work within Beauty Co. in the mentioned posts. Division 2.19 states sponsorship obligations wherein it shall be the duty of the employer to ensure that the employee works within the nominated occupation.Thereafter, the shop of Beauty Co. can lead to permanent closure for breach of visa sponsorships.

Other Obligations:

• Stella is expected to be informed of the rules and laws that the Australian visa might require. Stella hired Vanja as another employer in the post of an advertising specialist, with the use of Temporary Skills Shortage Class GK (482) visa. Herein, the visa can be used by employers in Australia in order to enhance the business conditions within the region. Moreover, she could not mention the presentation of fair remuneration to all.[3] Fair remuneration is a deemed right of employees and is one of the most important requirements as per the Australian rules that Stella should abide by.
• Stella Martika failed to present the exact reason for hiring the employees. The fact that immigration can be done for the need of any particular occasion is not shared by the individual by Stella.[4] This is because Stella gained popularity within the situation of the Covid-19 pandemic, by selling beauty products through social media campaigns. However, with such conditions, Stella cannot apply for a visa for hiring any employee to work in the Australian region. In totality, such activity is illegal and the Government of Australia does not offer any such permission to the residents. Such implementation can result in the cancellation of the visa and impose bans on the sponsorship applications by the government officials of Australia. Therefore, Stella shall be imposed heavy fines and penalties to be furnished to the Government for non-compliance with terms and conditions.

Stella is in non-compliance with statutory provisions within the sponsorship obligations of the Australian market. This is because as per the Australian sponsorship rules, it is mandatory to highlight the skills required for the proper operation of the business, which marks its absence within the region. As per the literal interpretation, skilled workers seem to be essential for the concern that is lacking within Australia. In order to cover vacancies, capable individuals are hired from varied other region that Stella tried to hire but in non-compliance of the statutory provisions. A better suggestion for Stella Martika is to follow the regulations of sponsorship of a visa for hiring the staff and should not rise with sudden online success. Therefore, Stella made such type of uncertain and illegal decisions to attract the staff for Beauty Co.

Q2: Are there any consequences for Stella as CEO of Beauty Co for adopting the current business practices?

Stella Martika, the CEO of Beauty Co.., suddenly attained extreme success at the time of the pandemic as online business attained a consistent hike. To retain such a reputation, she decided to attract varied types of employees from varied regions with the help of different visas. After doing such types of illegal applications, Stella failed to offer fair business practices to its employees. This is because, at the initial stage, Stella presented the entire details of all the roles and responsibilities of all the employees. This proved extremely effective for employees such as Fredrick Muller, Vanja, and DaniPieris. However, after a certain time, many staff quitted from the warehouse of Stella and this presented negative impacts on Beauty Co. Due to the lack of employees, all types of roles were performed by all the workers. So, the roles and assigned jobs of Fredrick, Vanja, and Dani altered each week as compared to the previous one and this created a detrimental effect on them. As a result, they sometimes performed their usual roles and at other times had to get engaged in packing the orders.[5] Apart from this, the compensation offered by Stella is also very low compared to other companies operating in the market of Australia. As per Division 2.19.1 of the Migration Regulations, this is punishable as per the Australian sponsorship rules. Since, the individual hire for sponsorship works need to be offered varied types of facilities such as traveling cost, relocation costs, fair compensations, etc. Other than this, the sponsors need to be presented with the nominated works only rather than others. However, such types of work are not performed by the employees hired by Stella, due to attrition of various workers. This is also a punishable offense for Stella as it is illegal as per the Australian sponsorship and it can result in huge penalties for breaching the Fair Work Act. Some of the consequences are:

• The working laws of Beauty Co. can get canceled due to the improper activities of Stella and this can also lead to imprisonment for certain long years.To mitigate such types of issues, it is essential to abide by the rules of Australian sponsorship. Then it could become effective as well as flourishing for Stella as well as the other immigrant workers to enhance their living standards. Besides this, the employees can also utilize their skills in an efficient manner to augment the productivity and output of the organization in the current in upcoming scenario. Despite knowing all these above facilities, Stella tried to misuse the employees after attracting them within Australia. This proved extremely pessimistic for Stella and also for Beauty Co. as most of the workers left their jobs and many complained for presenting inadequate salaries.

Hence, it can be mentioned that Stella needs to follow the laws of Australia in terms of sponsorship to maintain the business operation of Beauty Co. in an effective manner. Contrary to this, it can be revealed that failure to use it appropriately can result in varied types of illegal issues leading to the cancelation of the business and even a ban on visa sponsorships as resulted in the case of Stella. In lieu of this, Beauty Co. lost its brand image and reputation in the online premises and this also hindered the entire profitability and revenues of the firm.

Bibliography

1. Articles/ Books/ Reports
2. Cases
3. Legislation
4. MIGRATION ACT 1958
5. MIGRATION REGULATIONS 1994
6. Treaties
   
   Other

‘MIGRATION ACT 1958’, Division 1--Immigration status, Division 3--Visas for non-citizens, (Web Page, 30 October 2023) .

‘MIGRATION REGULATIONS 1994’, SPONSORSHIP OBLIGATIONS (Web Page, 30 October 2023) .

 ‘Obligations for standard business sponsors – in relation to subclasses 457, 482 and 494 visas’, Inquiry into Australia's skilled migration program, (Web Page, 30 October 2023) ,

‘SANCTIONS IMPOSED ON SPONSORS OF SKILLED FOREIGN WORKERS’, Visas and Sponsorships (Web Page, 30 October 2023) < abf.gov.au.>. 

 ‘Sponsorship obligations for Standard business’, Standard-business-accredited-obligations (Web Page, 30 October 2023) . 

 ‘Sponsorship obligations for Standard business’, Standard-business-accredited-obligation, (Web Page, 30 October 2023) .

[1] ‘SANCTIONS IMPOSED ON SPONSORS OF SKILLED FOREIGN WORKERS’, Visas and Sponsorships (Web Page, 30 October 2023) < abf.gov.au.>.

[2] ‘MIGRATION REGULATIONS 1994’, SPONSORSHIP OBLIGATIONS (Web Page, 30 October 2023) .

[3] ‘MIGRATION ACT 1958’, Division 1--Immigration status, Division 3--Visas for non-citizens, (Web Page, 30 October 2023) .

[4] ‘Sponsorship obligations for Standard business’, Standard-business-accredited-obligations (Web Page, 30 October 2023) . 

[5] ‘Obligations for standard business sponsors – in relation to subclasses 457, 482 and 494 visas’, Inquiry into Australia's skilled migration program, (Web Page, 30 October 2023) ,

[6] ‘Sponsorship obligations for Standard business’, Standard-business-accredited-obligation, (Web Page, 30 October 2023) .

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