What if the Minister proposes to declare my business a prohibited employer in 2026?
What to do if the Minister proposes to declare your business a prohibited employer, and how the response process works.
If the Minister for Immigration is considering declaring your business a prohibited employer, you will be sent a letter inviting you to explain why you should not be declared, your response will be considered, and a decision will then be made. That is the process set out by the Australian Department of Home Affairs on its official page "Information for employers and labour hire organisations", read as at October 2026. The same guidance states that further information, including the timeframe for response and any rights to seek review once a decision is made, will be explained to you — so the letter you receive is what fixes your deadline, not a single period published for everyone.
This article is general information about how that published process works, not personalised advice about your business; your letter and the current official guidance are the documents that govern your situation.
What is the prohibited employer scheme, in plain terms?
The prohibited employer scheme bans employers found guilty of serious breaches of the Migration Act 1958 (Migration Act 1958) from hiring more temporary migrant workers. Depending on the circumstances, the Minister for Immigration may designate an individual or a corporation as a prohibited employer. Once designated, you are no longer able to employ any new temporary visa holders.
The scheme operates alongside the wider set of consequences an employer can face for migrant worker exploitation, which include criminal charges, civil penalties and other sponsor sanctions.
What does the letter actually ask you to do?
The letter invites you to explain why you should not be declared a prohibited employer. Receiving it means a declaration is being considered; it does not mean the decision has already gone against you.
Your explanation is read, and a decision follows from it. That makes the response the one point in the process where you can put material in front of the decision-maker before the outcome is settled, which is why the deadline stated in the letter deserves attention before anything else.
How much time do you have to respond?
The Department's guidance does not publish one fixed period that applies in every case. It says the timeframe for response will be explained to you. In practice, the deadline is the one stated in your letter, and it is worth reading the whole letter before you begin drafting, because the response period and the concerns you need to answer usually sit in different parts of it.
If the period is short, the practical approach is to start collecting records straight away rather than waiting until you have formed a complete view of the matter.
How do you put a response together?
There is no required format published for the response beyond the invitation to explain why you should not be declared, so the wording of your letter is the thing to follow. Assume, for example, that the letter raises both an underpayment finding and a claim that a sponsored worker was rostered beyond their visa limits: a response that answers one point and ignores the other leaves the second point unanswered, and it can be decided against you on that basis.
A practical sequence for preparing it:
- Read the letter from beginning to end.
- Write down the deadline.
- List every concern the letter raises, in the order it raises them.
- Gather the records that answer each concern, such as pay records, rosters, employment contracts, VEVO checks and training records.
- Draft your response point by point, in the same order.
- State what you have already corrected and what you intend to change.
- Attach the documents you rely on.
- Keep a dated copy of everything you send.
Keep the response aimed at the concerns in the letter. General background about the business rarely helps the decision-maker resolve the specific findings.
What happens after you send it?
Your response is considered and a decision is made. Either the declaration proceeds, or it does not.
What changes if the declaration goes ahead?
Three things follow from designation:
- You cannot employ any new temporary visa holders.
- Temporary visa holders who were already working for you at the time of the declaration may continue working for you if they wish.
- Your business name will be published on the Australian Border Force website. Separately, if you are a sponsor and are penalised for exploiting migrant workers, your business name or your personal name can be made public on the register of sanctioned sponsors.
The limit is on new hiring only, which is the distinction most employers find most useful once a declaration is made.
How long can a prohibition last?
The length depends on the findings against you:
| Finding | Maximum length of prohibition |
|---|---|
| Human trafficking and modern slavery | No maximum length |
| A criminal offence other than human trafficking or modern slavery | Up to 10 years |
| All other migrant worker sanctions | Up to 5 years |
Can the decision be reviewed?
The Department's guidance says that any rights to seek review once a decision is made will be explained to you. Read the decision material carefully for what it says about review and about any deadline attached to it, rather than assuming a particular path or time limit applies.
What else can happen at the same time?
A sponsor who fails to meet sponsorship obligations may face sanctions including cancellation of approval as a sponsor, being banned from sponsoring other workers, being banned from making future applications for approval, being served with an infringement notice, being ordered to pay civil penalties imposed by the courts, being issued a compliance notice, or entering into an Enforceable Undertaking with the Department of Home Affairs or Australian Border Force. More than one sanction can be imposed at the same time.
Separately, penalties for serious, deliberate or repeated breaches of the Migration Act include up to five years' jail and fines of up to $131,040 (360 penalty units). Breaching a prohibition can lead to criminal prosecution and up to five years' jail, and/or a fine of up to $131,040 (360 penalty units), or both.
The financial figures named in the official pages cited are:
| Sanction or penalty | Amount published |
|---|---|
| Infringement notice — body corporate, each failure | $79,200 |
| Infringement notice — individual, each failure | $15,840 |
| Civil penalty imposed by the courts — body corporate, each failure | Up to $396,000 |
| Civil penalty imposed by the courts — individual, each failure | Up to $79,200 |
| Fine for serious, deliberate or repeated Migration Act breaches | Up to $131,040 (360 penalty units) |
| Fine for breaching a prohibition | Up to $131,040 (360 penalty units) |
Penalty unit values and published amounts change over time, so these figures should be checked against the latest official publication before being relied on.
Frequently Asked Questions
Does the letter mean my business has already been declared a prohibited employer?
No. The letter is issued while a declaration is being considered, and it invites you to explain why you should not be declared. A decision is made after your response is considered.
How long do I have to respond to the letter?
The Department's guidance does not set one fixed period for every case; it says the timeframe for response will be explained to you. Your letter is therefore the document that states the deadline that applies to you.
Can my existing temporary visa holders keep working if I am declared?
Yes, if they wish. Temporary visa holders already working for you at the time of the declaration may continue working for you, because the ban applies only to employing new temporary visa holders.
Will my business name be made public?
If you are declared, your business name will be published on the Australian Border Force website. Separately, if you are a sponsor and are penalised for exploiting migrant workers, your business or personal name can also be made public on the register of sanctioned sponsors.
Can the decision be reviewed?
The Department's guidance says any rights to seek review once a decision is made will be explained to you. Check the decision material for the review options and any deadline that applies in your case.
What happens if I do not respond?
The process does not simply stop. The guidance states that your response will be considered and a decision made, so a decision can follow on the material already available, without your explanation being part of it.