Medi Bar Pty Ltd (Migration)

Case [2024] AATA 233


Medi Bar Pty Ltd (Migration) [2024] AATA 233 (6 February 2024)

DECISION RECORD

DIVISION:Migration & Refugee Division

APPLICANT:  Medi Bar Pty Ltd

REPRESENTATIVE:  Ms Angela Chan (MARN: 9256542)

CASE NUMBER:  2102688

HOME AFFAIRS REFERENCE(S):          BCC2020/1972311

MEMBER:Antonio Dronjic

DATE:6 February 2024

PLACE OF DECISION:  Melbourne

DECISION:The Tribunal sets aside the decision not to approve the nomination and substitutes a decision that the nomination is approved.

Statement made on 06 February 2024 at 4:15pm

CATCHWORDS

MIGRATION – approval of a nomination – Short-term stream – occupation of Café or Restaurant Manager – genuine position – adverse information – associated entity barred from further sponsorship for 12 months – digital payroll system installed – table service restaurant – tasks of the position correspond to nominated occupation – terms and conditions no less favourable – updated financial information – labour market testing – decision under review set aside     

LEGISLATION

Corporations Act 2001
Migration Act 1958, ss 140, 245, 359
Migration (Skilling Australians Fund) Charges Act 2018
Migration (Skilling Australians Fund) Charges Regulations 2018
Migration Regulations 1994, Schedule 8, Condition 8107; rr 1.13, 2.57, 2.72, 2.73, 5.42

CASES

Cargo First Pty Ltd v MIBP [2016] FCA 30

STATEMENT OF DECISION AND REASONS

APPLICATION FOR REVIEW

  1. This is an application for review of a decision made by a delegate of the Minister for Home Affairs on 18 February 2021 to refuse to approve the applicant’s nomination under s 140GB of the Migration Act 1958 (Cth) (the Act) and reg 2.72 of the Migration Regulations 1994 (Cth) (the Regulations).

  2. The applicant applied for approval on 27 July 2020. A nomination of an occupation for a Subclass 482 visa is made under s 140GB of the Act and reg 2.73 of the Regulations. The occupation must be nominated for a Subclass 482 visa in one of 3 alternative streams: the Short-term stream, the Medium-term stream or the Labour Agreement stream. Regulation 2.72 prescribes general and stream-specific criteria that must be satisfied for the Minister to approve a nomination by a person. These criteria are extracted in Attachment D to this decision. Additional criteria are specified in s 140GBA. In this case, the occupation is nominated for a Subclass 482 visa in the Short-term stream.

  3. The delegate decided not to approve the nomination on the basis that the applicant did not satisfy reg 2.72(10)(a) as the delegate was not satisfied on the evidence presented that the position associated with the nominated occupation was genuine. The applicant applied to the Tribunal on 4 March 2021 for review of the delegate’s decision. The applicant submitted a copy of the primary decision record with the review application.

  4. On 10 November 2021, the Tribunal received submissions from the applicant’s representative, Ms Angela Chan of Dispute Resolution Pty Ltd. On 8 September 2023, the Tribunal wrote to the applicant pursuant to s 359(2) of the Act. The letter invited the applicant to provide information in writing that demonstrates the applicant meets all the requirements of reg 2.72 of the Regulations.

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Medi Bar Pty Ltd (Migration) [2024] AATA 233
Case
[2024] AATA 233
Decision Date

CaseChat Overview and Summary

The Administrative Appeals Tribunal considered a dispute between Medi Bar Pty Ltd and the Department of Home Affairs concerning the approval of a nomination for a Subclass 482 visa. The nomination was for the occupation of Café or Restaurant Manager under the Short-term stream.

The Tribunal was required to determine whether Medi Bar Pty Ltd met the criteria for approval of the nomination, specifically focusing on whether the nomination complied with the prescribed process under regulation 2.72 and whether there was any adverse information known to Immigration about the applicant or an associated person that could not be disregarded. The Tribunal also had to consider if the position was genuine and if the terms and conditions of employment were no less favourable than those for an Australian worker.

The Tribunal found that Medi Bar Pty Ltd had complied with the procedural requirements for making the nomination, including using the approved form, paying the required charges, and correctly identifying the nominated occupation and nominee. Crucially, the Tribunal addressed adverse information concerning an associated entity, Steak Co Pty Ltd, which had been barred from sponsorship for 12 months due to underpayment of staff. The Tribunal determined that while this constituted adverse information, it was reasonable to disregard it. This conclusion was based on the fact that the bar had expired, Steak Co Pty Ltd had repaid the underpaid wages, and Medi Bar Pty Ltd had implemented a digital payroll system to prevent future underpayments. Furthermore, no subsequent non-compliance by Medi Bar Pty Ltd had been demonstrated, and steps had been taken to negate the implications of the past conduct. The Tribunal was satisfied that the tasks of the nominated position corresponded to the ANZSCO requirements for Café or Restaurant Manager and that the terms and conditions of employment were not less favourable than those for an Australian worker.

Consequently, the Tribunal set aside the decision not to approve the nomination and substituted a decision approving the nomination.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

For the following reasons, the Tribunal has decided to set aside the decision under review and substitute a decision approving the nomination.CONSIDERATION OF CLAIMS AND EVIDENCE The issue in the present case is whether the applicant meets the criteria for approval of the nomination. The Tribunal must approve the nomination if the applicant is an approved work sponsor and meets the requirements in reg 2.72: s 140GB(2). The applicant must also have paid any nomination training contribution charge in relation to the nomination for which they are liable. In addition, the labour market testing requirements in s 140GBA must be met.The nomination must comply with the prescribed process Regulation 2.72(3) requires that the applicant has made the nomination in accordance with the process set out in reg 2.73. The Tribunal has had regard to the material in the Department’s file and is satisfied that:·the applicant is nominating an occupation under s 140GB(1)(b) in relation to a proposed applicant for a Subclass 482 visa, as per reg 2.73(1);·the nomination was made using the approved form and fee, as per reg 2.73(3), (4) and (5);·the nomination was accompanied by the applicable training contribution charge, as required by reg 2.73(5A) of the Regulations; ·the nomination was made in the Short-term stream as the nominated occupation of Café or Restaurant Manager is a short-term specified skilled occupation in the relevant instrument, LIN 19/048, as per reg 2.73(6);·the applicant identified the nominee, Mr Brice Le, in the nomination, as per reg 2.73(8);·the nomination included the name of the occupation and the corresponding 6-digit code, the location at which the occupation will be carried out, the proposed period of stay for a visa granted on the basis of the nomination and the annual turnover for the nomination, as per reg 2.73(9);·the nomination included disclosure by the applicant to the effect that the applicant had not engaged in any conduct in relation to this nomination that constituted a contravention of s 245AR(1) of the Act: reg 2.73(12);·the nomination included written certification that the employment contract with the nominee complied with Commonwealth, State or Territory employment laws, unless the occupation is exempt, as per reg 2.73(13); and·the nomination included written certification that the tasks of the position included a significant majority of the tasks specified for the occupation in ANZSCO, that the qualifications and experience of the nominee were commensurate with those specified for the occupation in ANZSCO, and that the position is in the applicant’s or an associated entity’s business: reg 2.73(14). For these reasons, the Tribunal is satisfied that the requirements of reg 2.72(3) are met.No adverse information known to Immigration Regulation 2.72(4) requires that either: there is no adverse information known to Immigration about the applicant or a person associated with the applicant; or it is reasonable to disregard such information. For these purposes, ‘adverse information’ and ‘associated with’ have the meaning given in regs 1.13A and 1.13B.

Decision

Reasons for decision

For the reasons given above, the applicant meets all the applicable criteria for the nomination to be approved.DECISION The Tribunal sets aside the decision not to approve the nomination and substitutes a decision that the nomination is approved.Antonio DronjicMemberATTACHMENT A: DOCUMENT LIST·Submissions from the representative, Ms Angela Chan, dated 21 September 2023.·Company tax return for Medi Bar Pty Ltd for FY 2021 and 2022.·Balance sheet for Medi Bar Pty Ltd as of June 2023.·Business activity statements for the period July 2021 to December 2021 and January 2022 to December 2022.·Profit and loss statement for July 2022 to June 2023.·Business activity statement for January to March 2023.·Medi Bar Pty Ltd special purpose financial statements for the year ended 30 June 2022.·ASIC current and historical company extract for Medi Bar Pty Ltd extracted 22 September 2023.·ABN lookup for Medi Bar Pty Ltd extracted 21 September 2023.·Department of Home Affairs notification of approval as a standard business sponsor for Medi Bar Pty Ltd dated 9 May 2019.·Business organisation chart dated September 2023.·Job description for assistant manager for Georges Mediterranean Bar and Grill, undated.·Seek and Indeed job advertisements for assistant restaurant manager for Georges Mediterranean Bar and Grill dated 24 June 2020.·Invoice for Seek advertisement dated 24 June 2020.·Invoice for Indeed advertisement dated 30 June 2020.·Employee contract review for Brice Le dated 2 November 2023. ·Payslips for Brice Le dated 27 June 2023 to 5 September 2023. ·Employee contract review for equivalent Australian worker dated 8 August 2023.·Payslips for Nicholas Powell dated 5 September to 19 September 2023.·Department of Immigration and Border Protection notification of Subclass 457 visa grant for Brice Le dated 3 June 2014.·Department of Home Affairs notification of Subclass 457 visa grant for Brice Le dated 27 July 2018.·Department of Home Affairs notification of Bridging visa A grant for Brice Le dated 27 July 2020. ·Department of Home Affairs notification of Bridging visa B grant for Brice Le dated 7 March 2022. ·Brice Le IELTS test report forms dated 30 September 2017, 15 August 2019 and 30 November 2021.ATTACHMENT B: DOCUMENT LIST·Brice Le ATO notices of assessment for years ended 30 June 2019 to 2023. ·Brice Le reconciliation of wages dated 7 July 2019 to 28 June 2020 and 4 July 2021 to 26 June 2022.·Steak Co Pty Ltd balance sheet as of June 2023.·Steak Co Pty Ltd profit and loss statement for July 2022 to June 2023.·Steak Co Pty Ltd special purpose financial statements for the year ended 30 June 2022.·Steersons Steakhouse employee payment history report for Brice Le dated 25 March 2019 to 30 June 2023.·Medi Bar Pty Ltd balance sheets for June 2021, 2022 and 2023. ·Medi Bar Pty Ltd profit and loss statement for July to June 2021, 2022 and 2023.·Medi Bar Pty Ltd special purpose financial statements for the year ended 30 June 2022.ATTACHMENT C: DOCUMENT LIST·Post hearing submissions from the representative, Pryor Tzannes & Wallis, dated 23 January 2024. ·Letter of authority from Georges Mediterranean Bar and Grill dated 22 January 2024 signed by Leo Varvaritis.·ASIC Historical and Current extracts for Medi Bar Pty Ltd, Steak Co Pty Ltd, Steak One Pty Ltd and One Shelley Street Pty Ltd, extracted 17 January 2024. ·Medi Bar Pty Ltd trading as Georges Mediterranean Bar and Grill organisational chart undated. ·Brice Le PAYG extract for 2021 – 2024.·Nicolas Powell PAYG tax dated 2022 – 2023.·Brice Le assistant restaurant manager employment contract for Georges Mediterranean Bar and Grill signed 22 January 2024.·PayScale average restaurant assistant manager salary research dated 24 July 2020.ATTACHMENT D - EXTRACTS FROM THE MIGRATION REGULATIONS 19942.72 Criteria for approval of nomination--Subclass 457 (Temporary Work (Skilled)) visa and Subclass 482 (Temporary Skill Shortage) visa(1)This regulation applies in relation to a person who:(a)is any of the following:(i) a standard business sponsor;(ii) a person who has applied to be a standard business sponsor;(iii) …(iv) …(b)under paragraph 140GB(1)(b) of the Act, nominates a proposed occupation in relation to any of the following (the nominee):(i) a holder of a Subclass 457 (Temporary Work (Skilled)) visa;(ii) a holder of a Subclass 482 (Temporary Skill Shortage) visa;(iii) an applicant or a proposed applicant for a Subclass 482 (Temporary Skill Shortage) visa.(2)For the purposes of paragraph 140GB(2)(b) of the Act, the criteria set out in this regulation are prescribed.Note: In addition, subsection 140GB(2) of the Act requires the person to be an approved work sponsor and to have paid any nomination training contribution charge in relation to the nomination.(3)The Minister is satisfied that the person made the nomination in accordance with the process set out in regulation 2.73.(4)The Minister is satisfied that either:(a)there is no adverse information known to Immigration about the person or a person associated with the person; or(b)it is reasonable to disregard any adverse information known to Immigration about the person or a person associated with the person.(5)The Minister is satisfied that:(a)if the occupation is nominated for a Subclass 482 (Temporary Skill Shortage) visa in the Short-term stream or Medium-term stream—the person is a standard business sponsor; or(b)…(5A)The Minister is satisfied that any debt due by the person as mentioned in section 140ZO of the Act (recovery of nomination training contribution charge and late payment penalty) has been paid in full.(6)If the nominee holds:(a)a Subclass 457 (Temporary Work (Skilled)) visa; or(b)a Subclass 482 (Temporary Skill Shortage) visa;the Minister is satisfied that the person has listed on the nomination each other holder of either of those kinds of visa who was granted the visa on the basis of having the necessary relationship with the nominee as mentioned in clause 457.321 of Schedule 2 (as in force before 18 March 2018) or subclause 482.312(1) of Schedule 2.(7)However, the Minister may disregard the fact that one or more persons required to be listed on the nomination are not listed, if the Minister is satisfied it is reasonable in the circumstances to do so.(8)The Minister is satisfied that:(a)the occupation and its corresponding 6-digit code correspond to an occupation and its corresponding 6-digit code specified in:(i) if the occupation is nominated for a Subclass 482 (Temporary Skill Shortage) visa in the Short-term stream or Medium-term stream—the instrument made under subregulation (9) in force at the time the nomination is made; or(ii) …; and(b)the occupation applies to the nominee in accordance with the instrument or work agreement.(9)The Minister may, by legislative instrument, specify occupations and, for each occupation:(a)whether the occupation is:(i) a short term skilled occupation; or(ii) a medium and long term strategic skills occupation; and(b)either:(i) the 6-digit ANZSCO code for the occupation; or(ii) if there is no 6-digit ANZSCO code for the occupation—a 6-digit code for the occupation; and(c)if there is no 6-digit ANZSCO code for the occupation—tasks, qualifications and experience for the occupation; and(d)any matters for the purpose of determining whether the occupation applies to a nominee, including matters relating to any of the following:(i) the person who nominated the occupation;(ii) the nominee;(iii) the occupation;(iv) the position in which the nominee is to work;(v) the circumstances in which the occupation is undertaken;(vi) the circumstances in which the nominee is to be employed in the position.(10)The Minister is satisfied that the position associated with the occupation is:(a)genuine; and(b)a full-time position.(10A)However, the Minister may disregard the criterion in paragraph (10)(b) if the Minister is satisfied that it is reasonable in the circumstances to do so.(11)If:(a)the occupation is nominated for a Subclass 482 (Temporary Skill Shortage) visa in the Short-term stream or Medium-term stream; and(b)the person is not an overseas business sponsor; and(c)the occupation is not an occupation specified by the Minister in an instrument made under subregulation (13);the Minister is satisfied that:(d)the nominee will be engaged only as an employee under a written contract of employment by the person or an associated entity of the person (the employer); and(e)the person will give the Minister a copy of the contract signed by the employer and the nominee.(12)If:(a)the occupation is nominated for a Subclass 482 (Temporary Skill Shortage) visa in the Short-term stream or Medium-term stream; and(b)the person is an overseas business sponsor; and(c)the occupation is not an occupation specified by the Minister in an instrument made under subregulation (13);the Minister is satisfied that:(d)the nominee will be engaged only as an employee under a written contract of employment by the person; and(e)the person will give the Minister a copy of the contract signed by the person and the nominee.(13)The Minister may, by legislative instrument, specify occupations for the purposes of paragraphs (11)(c) and (12)(c) …(14)If:(a)the occupation is nominated for a Subclass 482 (Temporary Skill Shortage) visa in the Short-term stream or Medium-term stream; and(b)the nominee holds a Subclass 457 (Temporary Work (Skilled)) visa or a Subclass 482 (Temporary Skill Shortage) visa; and(c)the Minister requested the person to provide evidence that the nominee satisfies the language test requirements;the person has provided evidence to the Minister that the nominee satisfies:(d)if the occupation is nominated for a Subclass 482 (Temporary Skill Shortage) visa in the Short-term stream—any language test requirements specified by the Minister in a legislative instrument for clause 482.223 of Schedule 2 that would apply to the nominee if the nominee were an applicant for a Subclass 482 (Temporary Skill Shortage) visa in the Short-term stream; or(e)if the occupation is nominated for a Subclass 482 (Temporary Skill Shortage) visa in the Medium-term stream—any language test requirements specified by the Minister in a legislative instrument for clause 482.232 of Schedule 2 that would apply to the nominee if the nominee were an applicant for a Subclass 482 (Temporary Skill Shortage) visa in the Medium-term stream.(15)Subject to subregulation (16), if:(a)the occupation is nominated for a Subclass 482 (Temporary Skill Shortage) visa in the Short-term stream or Medium-term stream; and(b)the Minister is not satisfied that the nominee’s annual earnings in relation to the occupation will be at least the amount specified by the Minister in a legislative instrument made for the purposes of this paragraph;the Minister is satisfied that:(c)the annual market salary rate for the occupation has been determined by the person in accordance with the instrument made under subregulation (17); and(d)the annual market salary rate, excluding any non-monetary benefits, for the occupation (determined by the person in accordance with an instrument made under subregulation (17)) is not less than the temporary skilled migration income threshold specified by the Minister in a legislative instrument made for the purposes of this paragraph; and(e)the nominee’s annual earnings in relation to the occupation will not be less than the annual market salary rate for the occupation (determined by the person in accordance with an instrument made under subregulation (17)); and(f)the nominee’s annual earnings, excluding any non-monetary benefits, in relation to the occupation will not be less than the temporary skilled migration income threshold specified by the Minister in a legislative instrument made for the purposes of paragraph (d); and(g)either:(i) there is no information known to Immigration that indicates that the annual market salary rate for the occupation (determined by the person in accordance with an instrument made under subregulation (17)) is inconsistent with Australian labour market conditions relevant to the occupation; or(ii) it is reasonable to disregard any such information.(16)However:(a)the Minister may disregard the criterion in paragraph (15)(d) if the Minister is satisfied that:(i) the annual market salary rate for the occupation (determined by the person in accordance with an instrument made under subregulation (17)) is not less than the temporary skilled migration income threshold specified by the Minister in a legislative instrument made for the purposes of paragraph (15)(d); and(ii) it is reasonable in the circumstances to do so; and(aa)the Minister may disregard the criterion in paragraph (15)(e) if:(i) under subregulation (10A), the Minister disregards the criterion in paragraph (10)(b) in relation to the position associated with the occupation; and(ii) the Minister is satisfied that it is reasonable in the circumstances to do so; and(b)the Minister may disregard the criterion in paragraph (15)(f) if the Minister is satisfied that it is reasonable in the circumstances to do so.(17)The Minister may, by legislative instrument, specify a method for determining the annual market salary rate for an occupation nominated under section 140GB of the Act or an occupation in relation to which a position is nominated under regulation 5.19.(18)If the occupation is nominated for a Subclass 482 (Temporary Skill Shortage) visa in the Short-term stream or Medium-term stream, the Minister is satisfied that:(a)either:(i) there is no information known to Immigration that indicates that the employment conditions (other than in relation to earnings) that will apply to the nominee are less favourable than those that apply, or would apply, to an Australian citizen or an Australian permanent resident performing equivalent work at the same location; or(ii) it is reasonable to disregard any such information; and(b)if the person is lawfully operating a business in Australia—the person has not engaged in discriminatory recruitment practices.(19)…

Ratio Decidendi

Legal Principle Established

For these reasons, the Tribunal is satisfied that the requirements of reg 2.72(3) are met.No adverse information known to Immigration Regulation 2.72(4) requires that either: there is no adverse information known to Immigration about the applicant or a person associated with the applicant; or it is reasonable to disregard such information. For these purposes, ‘adverse information’ and ‘associated with’ have the meaning given in regs 1.13A and 1.13B. It was revealed at the hearing that the nominator’s associated entity, Steak Co Pty Ltd, which operates Steersons Steakhouse, was subject to Department monitoring and as a result was barred from sponsoring on 19 December 2019 for a period of 12 months. The Tribunal finds that Medi Bar Pty Ltd is an associated entity of Steak Co Pty Ltd pursuant to reg 1.13B. As noted during the hearing, pursuant to reg 1.13A, adverse information is any adverse information relevant to the person’s suitability as an approved sponsor and includes information that the person has been the subject of administrative action as per reg 1.13A(2)(c). As Steak Co Pty Ltd was barred from further sponsorship for a period of 12 months, the Tribunal finds that this entity was the subject of an administrative action. The Tribunal considered whether it is reasonable to disregard the adverse information. In doing so, the Tribunal considered:·the nature and seriousness of the adverse information; ·whether the adverse information arose recently or a long time ago;·how the adverse information arose, including the credibility of the source of the adverse information;·whether the conduct or circumstance of concern is likely to reoccur (including whether there have been steps taken to guard against this);·how relevant the adverse information is to the person’s suitability as an approved sponsor or nominator; and ·whether there are any compelling circumstances affecting the interests of Australia. The applicant’s representative submitted, among other things:The ABF issued the 12-month bar as they found that four workers were underpaid a total of $10,769. Steak Co Pty Ltd undertook to repay the workers within 10 days which was done. The underpayment of the workers was a result of the difficulty in streamlining pay periods and overtime but has now been rectified with the installation of a fully digital payroll system which means that underpayments will no longer be a problem for the company.more than fourteen months had expired since the imposition of the 12-month bar from sponsoring. On 13 May 2023, a fresh nomination and visa application was approved for another employee at Medi Bar Pty Ltd. It was also disclosed at the time of application that an associated entity, Steak Co Pty Ltd had been subject to a 12-month bar which expired on 19 December 2020There is no evidence that Medi Bar Pty Ltd has since been non-compliant. Medi Bar Pty Ltd has taken steps to negate the implications of relevant conduct or practices; and developed practices and procedures to ensure the relevant conduct is not repeated.