If your business cannot find suitably skilled workers in Australia, a labour agreement may allow you to sponsor overseas workers where standard visa programs do not meet your needs.
A labour agreement is a formal arrangement between the Australian government (represented by the Department) and an approved employer. It enables businesses to sponsor skilled overseas workers in circumstances where:
- There is a demonstrated labour shortage that cannot be filled locally, and
- Standard temporary or permanent skilled visa programs are not available or suitable.
Labour agreements are generally valid for five years. They allow visa grants under one or more of the following programs:
- Skills in Demand visa (subclass 482)
- Employer Nomination Scheme visa (subclass 186)
- Skilled Employer Sponsored Regional (Provisional) visa (subclass 494)
There is no fee to request a labour agreement. However, costs apply at the nomination and visa application stages. Please contact our team if you would like further details about the process.
Why Would an Employer Need a Labour Agreement?
You should consider a labour agreement if:
- You have genuine and ongoing skill shortages.
- You cannot fill the roles with Australian citizens or permanent residents.
- The occupation or circumstances are not covered under standard skilled migration programs.
Labour agreements are not designed to replace standard visa pathways. They are intended to address specific workforce gaps that cannot otherwise be resolved.
Types of Labour Agreements
There are three main types of labour agreements in Australia. The type that applies depends on your industry, location, and business circumstances.
Industry Labour Agreements
Industry labour agreements apply to a specific sector. Industry representative bodies negotiate the terms and conditions with the Department after demonstrating ongoing labour shortages and consulting widely within the sector.
The terms are fixed and non-negotiable. This ensures consistency and equal opportunity across the industry. There are currently ten industry agreements covering the following sectors:
- Advertising
- Aged care
- Dairy
- Fishing
- Horticulture
- Meat
- Minister of Religion
- On-hire
- Pork
- Restaurant (premium dining)
Each agreement specifies the occupations that can be sponsored and the conditions that apply. For example:
- The aged care agreement allows sponsorship of direct care workers in specific occupations.
- The dairy agreement covers senior dairy roles and allows temporary and permanent pathways.
- The restaurant (premium dining) agreement applies to approved premium dining establishments and covers selected hospitality roles.
Employers must meet the eligibility requirements of the relevant industry agreement. Some industries require endorsement from a peak body before an agreement can be requested.
Designated Area Migration Agreements (DAMA)
A DAMA is a formal arrangement between the Australian government and a state, territory, or regional authority. DAMAs operate under a two-tier structure:
- A five-year head agreement between the government and a Designated Area Representative (DAR).
- Individual labour agreements between the government and endorsed employers within that region.
DAMAs provide access to a broader range of occupations than the standard skilled migration program. They also allow agreed concessions to certain visa criteria, depending on the head agreement for that region.
Before lodging a DAMA labour agreement request, an employer must:
- Operate within the designated region.
- Seek and obtain endorsement from the relevant DAR.
- Demonstrate genuine attempts to recruit Australian workers first.
A DAMA will not be endorsed if the industry is already covered by an Industry Labour Agreement with fixed terms.
Individual DAMA labour agreements are generally valid for five years and operate through the subclass 482, 494, and 186 visa programs.
Company Specific Labour Agreements
A company specific labour agreement is designed for businesses with unique or exceptional workforce needs. You may consider this option if:
- Your occupation shortage is not covered by an Industry Labour Agreement.
- There is no DAMA or project agreement in place.
- The role is not available under standard skilled visa occupation lists, unless you can present a strong and compelling business case.
This type of agreement is not appropriate if you can use standard visa programs or if you are already covered by an industry or regional agreement.
Demonstrating Your Skills Need
You must show that:
- The skills you require cannot be sourced locally.
- You have undertaken significant and genuine recruitment efforts.
- The role includes a detailed job description outlining tasks and responsibilities.
Positions must generally align with ANZSCO skill levels 1 to 4. In exceptional cases, businesses in certain regional areas may receive consideration for roles equivalent to skill level 5.
Sponsored workers must:
- Meet the relevant ANZSCO skill requirements.
- Meet any industry registration or licensing obligations.
Requesting Concessions
In limited circumstances, you may request concessions to standard visa criteria in areas such as:
- English language
- Age
- Salary
- Work experience
You must provide strong justification for each concession. Concessions will not be approved if they create inconsistent employment conditions between overseas workers and Australians in equivalent roles.
Permanent residence pathways may be available through the subclass 186 or, for regional employers, through the subclass 494 pathway.
Workforce Planning Requirements
A company specific labour agreement is a temporary solution. You must show that:
- Overseas workers will not exceed one-third of your total workforce.
- You have a clear plan to train and employ Australians to reduce future reliance on overseas workers.
Workers must meet the English language requirements of the subclass 482 visa.
Business Eligibility
To qualify, you must:
- Be an Australian registered business in good standing.
- Have operated lawfully and actively in Australia for at least 12 months.
- Demonstrate financial viability through a chartered or certified practising accountant.
- Have no adverse legal history, investigations, insolvency issues, or misleading conduct.
Stakeholder Consultation
Before lodging a request, you must consult with relevant stakeholders, which may include:
- Industry bodies
- Unions
- Community groups affected by the proposal
You must:
- Provide detailed information about proposed occupations, salaries, workplace locations, and any requested concessions.
- Allow 10 working days for responses, with an additional 5 days if required.
- Include full consultation details in your application.
Requests submitted without proper consultation will be returned without assessment.
Project Agreements
A project agreement applies to companies experiencing genuine skill shortages during the construction phase of major resource or infrastructure projects. Project companies endorsed under specific international investment arrangements may request this type of agreement. Employers must contact the Department before lodging a request.
How SALIA Lawyers & Associates Can Help
SALIA Lawyers & Associates Pty Ltd assists employers and sponsored workers with the nomination and visa process under the subclass 482, 494 and 186 pathways. We ensure applications are accurate, complete and aligned with the terms of your approved labour agreement.
Contact our team for clear, practical guidance on your employer-sponsored visa applications.
Disclaimer: Please note that the information provided is intended as a general guide and should not be relied upon as legal or migration advice. As migration laws and regulations can change, we recommend consulting an Australian Lawyer or Registered Migration Agent for advice tailored to your circumstances.
