Australia’s migration settings are becoming more targeted, with tighter visa controls, revised skilled migration priorities and stronger compliance measures. For franchisors and franchisees, these changes have practical implications for workforce planning, employment obligations and brand reputation.
Many franchise networks rely on a combination of local employees, international students and Working Holiday Makers to meet staffing needs, particularly during seasonal peaks. Understanding the evolving migration landscape is essential to maintaining workforce continuity while managing compliance risks.
1. Workforce supply: Who arrives, who stays and who leaves?
The Federal Government’s migration reforms reflect a shift towards a more selective system, designed to address genuine skills shortages while strengthening the integrity of temporary visa pathways.
For franchisees in hospitality, retail and food services, this could mean greater uncertainty when recruiting international workers. Announced reforms will introduce ballot arrangements for second(45,000 quota) and third-year (5000 quota) Working Holiday Maker participation, while regional ‘specified work” requirements will continue. These changes may make it harder to rely on returning workers for successive seasonal peaks.
Student visa settings are also tightening, with greater scrutiny of genuine study intentions and restrictions affecting some applications made within Australia and secondary applicants. Over time, these measures may influence the availability of international students seeking part-time work.
Meanwhile, Ministerial Directions 121 and 122, which commenced on 19 September 2026, establish new processing priorities for specified skilled visas. Priority is given to identified sectors including construction, healthcare, teaching, agriculture and resources. Applications outside priority groups may experience longer processing times.
Franchisees should plan ahead by reviewing staffing requirements before peak trading periods, strengthening employee retention and considering alternative recruitment strategies. Eligible businesses experiencing persistent skills shortages may also explore employer-sponsored visas or labour agreements.
2. Visa compliance: Equipping franchisees with the right knowledge
As migration enforcement increases, franchisees need to understand their obligations when recruiting and managing workers. A valid visa does not automatically mean a person can undertake any role or work any hours.
Employers should verify work rights and relevant visa conditions through the Department of Home Affairs’ Visa Entitlement Verification Online (VEVO) service. For student visa holders, this includes checking applicable work-hour restrictions and course of study. Working Holiday Makers may also be subject to conditions limiting how long they can work for one employer.
Visitor visa holders cannot work in Australia, so businesses should assess proposed activities carefully and ensure the appropriate work visa is in place before someone travels. The recent changes also indicated that visitor visas will now have a ‘no further stay’ condition attached which will restrict the ability to apply for further visas while in Australia.
Franchisors can support compliance across their networks by providing practical training, clear onboarding procedures and guidance on checking work rights, monitoring restrictions and escalating concerns. Franchisees should know when to seek specialist migration or employment law advice rather than making assumptions about workers’ entitlements.
The Government has announced additional compliance resources by recruiting an additional 100 compliance officers and a stronger enforcement focus, including in higher-risk industries such as hospitality and construction. Identifying and addressing potential issues early can help reduce the risk of breaches, disruption and legal exposure.
3. Reputational risk and modern slavery
How migrant workers are recruited, paid and treated can affect the reputation of an entire franchise network. Risks may arise through direct employment, labour-hire providers and recruitment arrangements, particularly where workers are vulnerable to exploitation.
Under Australia’s Modern Slavery Act 2018, entities with annual consolidated revenue of at least $100 million that meet relevant criteria must report on modern slavery risks in their operations and supply chains, and the actions taken to address them.
Not every franchisee has a direct reporting obligation, and requirements depend on the entity and corporate structure. However, reputational exposure can extend beyond the entity legally required to report.
Franchisors should consider supplier due diligence, clear worker treatment standards, accessible reporting channels and appropriate oversight of franchisee practices. Responsible employment should be embedded in network governance, not treated solely as a reporting exercise.
4. Industry advocacy: Giving franchising a voice
Migration policy must balance worker protections and national priorities with the need to fill genuine workforce shortages. Through the Franchise Council of Australia (FCA), franchisors and franchisees can contribute to discussions about skilled occupation lists, regional workforce needs and labour agreements.
Sharing evidence of persistent vacancies and recruitment challenges can help policymakers understand the realities of franchise operations. Eligible businesses may also explore labour agreements where standard visa pathways do not adequately address genuine workforce needs, subject to relevant requirements.
Get expert migration support
Citation Group have a dedicated team providing tailored migration advice and support to help businesses navigate visa requirements and Australia’s evolving migration landscape.
Contact Citation Migration today to discuss your workforce needs and how our team can support your business.
