Labour agreements allow organisations to sponsor “off-list” occupations (typically semi-skilled positions) for work visas
Labour agreements allow organisations to sponsor "off-list" occupations (typically semi-skilled positions) for work visas
- Overview
- Eligibility
- Company / Industry Specific
- On-Hire
- DAMA / Project / Skilled Refugee
- Documents
- Process
Labour Agreements
Australian organisations have the ability to enter into specific, negotiated agreements with the Department to access occupations that are not ordinarily sponsorable for work visas to Australia under the Skills in Demand (SID) Subclass 482 visa program. These are known as Labour Agreements.
A labour agreement allows an organisation to sponsor “off list” occupations, utilising the existing SID Subclass 482 visa. This also includes a pathway to permanent residency via the Employer Nomination Scheme (ENS) Subclass 186 visa.
There are numerous different types of labour agreements set out across the various tabs.
Target Market
Organisations seeking to sponsor foreign nationals for positions that cannot be filled via the standard Skills in Demand (SID) Subclass 482 visa program. Typically semi-skilled positions.
Visa applicant requirements
- Qualifications suitable for the role
- At least 1 year of full-time experience in similar positions (in the last 5 years)
- Genuine intention to work in the nominated position
- Adequate arrangements for health insurance
- Health, character, and English requirements
Additional criteria applies depending on what is negotiated as part of the labour agreement
Company (labour agreement) requirements
- A compelling business case for the employment of overseas workers in one or more occupations where evidence of a labour market shortage
- Actively and lawfully operating in Australia
- Business is financially viable
- No “adverse information” regarding the business
- Demonstrate that there is a genuine labour market need to utilise the labour agreement program through recruitment efforts, participation in career expos, relevant industry research, and letters of support from government authorities
- Evidence that the business will remove their reliance on overseas workers
- Consult with relevant industry stakeholders (industry body and union, and any other agency/community group), and provide certain relevant information
Position (nomination) requirements
- A genuine, full-time position in the sponsor’s business
- A salary not less than the Temporary Skilled Migration Income Threshold (TSMIT) and in line with market rates (unless concessions were agreed to)
- Appropriate Labour Markest Testing (LMT) undertaken
- An occupation negotiated as part of the Labour Agreement
Additional criteria applies depending on what is negotiated as part of the labour agreement
Eligibility
Labour Agreements
This section sets out the requirements typically required for a business to seek a Labour Agreement.
For the Skills in Demand (SID) Subclass 482 visa itself, the requirements are broadly similar to that set out on our SID visa page, noting that some concessions to things such as salary can be negotiated as part of the Labour Agreement.
Company requirements
In requesting the Labour Agreement, the business would need to demonstrate:
- a compelling business case for the employment of overseas workers in one or more occupations where there is evidence of a labour market shortage;
- that it is lawfully and actively operating in Australia for the past 12 months;
- that it is financially viable;
- that there is no “adverse information” regarding the business;
- that all employees will meet appropriate salary (i.e. TSMIT or higher, and in line with Australian market rates) and employment conditions;
- that there is a genuine labour market need to utilise the labour agreement program (i.e. that positions cannot be filled through the local labour market, and that genuine efforts have been made to recruit, employ, or engage Australian citizens/PR). This includes providing:
- recruitment efforts;
- information regarding participation in job/career expos (and fees) – dates, location, whether any positions were filled;
- relevant industry research in past 12 months;
- letters of support from government authorities with responsibility for employment
- that they will remove their reliance on overseas workers (for business in major cities, overseas workers should not comprise more than 30% of their workforce and this limit should decrease over the life of the labour agreement);
- that sponsored workers will have appropriate English, skills, qualifications and experience; and
- they have consulted with relevant industry stakeholders (industry body representing your interests, union relevant to the occupation interests, and any other agency/community group impacted by the proposed labour agreement) and provide certain relevant information.
Company / Industry Specific
Labour Agreements
There are several different types of Labour Agreements depending on what the organisation is attempting to achieve.
This page contains a summary of company and industry-specific agreements and what they are typically used for.
Company Specific
The “main” labour agreement is a company-specific agreement. This applies where a “Designated Area Migration Agreement” (DAMA) does not apply, and the organisation wishes to sponsor occupations that are not available under the standard skilled visa programs.
An organisation can outline which occupations it seeks, and negotiate with the Department. Typically positions must be ANZSCO skill level 1 to 4.
Businesses in “Category 3 regional areas” of Australia may be able to request ANZSCO skill level 5 occupations in exceptional situations.
Industry Specific Agreements
Industry Labour Agreements apply for specific industries, where the crux of the agreements have already been pre-negotiated. This means that there are already fixed terms and conditions if you enter into an industry-specific labour agreement.
The industries with which agreements already exist include:
- Advertising Industry (advertising specialists, graphic designers, copywriters, multimedia designers, web developers);
- Aged Care industry (nursing support worker, personal care assistant, aged or disabled carer);
- Diary industry (Senior Dairy Cattle Farm Worker and Dairy Cattle Operator);
- Fishing industry (Deck Hand, Fishing Hand, Master Fisher, Ship’s Engineer, Ship’s Master, Ship’s Officer, and Seafood Process Worker);
- Horticulture industry (various horticulture occupations);
- Meat industry (Skilled Meat Workers – Slicer/Boner);
- Diary industry (Senior Dairy Cattle Farm Worker and Dairy Cattle Operator);
- Minister of Religion (Minister of Religion or Religious Assistant);
- Pork industry (Senior Stockperson (Piggery));
- Restaurant (premium dining) industry (Chef, Cook, Café or Restaurant Manager, Trade Waiter);
- On-Hire (Only occupations ordinarily sponsorable for a SID 482 visa) – outlined in further detail below.
On-Hire Labour Agreements
Labour Agreements
There are several different types of Labour Agreements depending on what the organisation is attempting to achieve.
This page contains a summary of on-hire agreements and what they are typically used for.
On-Hire Labour Agreements
All SID Subclass 482 visas are subject to a condition that permits them to work only for their sponsoring employers (or an associated entity of that sponsor). This means that “on-hire” arrangements are not permitted.
An “on-hire” labour agreement specifically allows businesses to sponsor foreign nationals for the SID Subclass 428 visa, and “on-hire” them to separate unrelated businesses – also known as labour hire.
Only occupations that are ordinarily sponsorable for a SID Subclass 482 visa may be considered however (i.e. off-list occupations cannot be negotiated for “on-hire”).
DAMA / Project / Skilled Refugee Labour Agreements
Labour Agreements
There are several different types of Labour Agreements depending on what the organisation is attempting to achieve.
This page contains a summary of Designated Regional Migration Agreements (DAMA), Project Agreements and Skilled Refugee Labour Agreements, and what they are typically used for.
Designated Area Migration Agreements (DAMA)
Designated Area Migration Agreements are large scale agreements negotiated by certain State/Territory governments (or a regional authority) with the Australian government, for their specific region.
A DAMA is a two-tier system that covers defined regional areas, being:
- Tier one – an overarching five year “head agreement” with the region; and
- Tier two – individual labour agreements between organisations in the designated regions, and the Australian Government.
Effectively, it allows the region to pre-negotiate access to certain occupations and concessions for the region based on unique regional needs. Businesses in that region, can then negotiate labour agreements with the Department to access the fixed terms and conditions pre-negotiated under the “head agreement”.
There are currently 13 DAMAs in place, as follows:
- Adelaide City Technology and Innovation Advancement, SA: Skilled & Business Migration
- East Kimberley, WA: East Kimberley Chamber of Commerce and Industry
- Far North Queensland, QLD: Cairns Chamber of Commerce
- Goulburn Valley, VIC: Goulburn Valley
- Great South Coast, VIC: Warrnambool City Council
- Northern Territory, NT: Northern Territory Designated Area Migration Agreement
- Orana, NSW: Regional Development Australia – Orana, NSW
- Pilbara, WA: RDA Pilbara
- South Australia Regional, SA: Skilled & Business Migration
- South West, WA: Shire of Dardanup
- The Goldfields, WA: City of Kalgoorlie Boulder
- Townsville, QLD: Townsville Enterprise Limited
- Western Australia: Department of Training and Workforce Development
DAMAs can offer a very broad range of semi-skilled occupations for the relevant regions, as well as concessions relating to age (for SESR and PR), English language, and salary.
Project Agreements
Project Agreements are large scale agreements negotiated by project companies during the construction phase of resource or infrastructure companies.
This allows a project company to negotiate an overarching deed with the Department of Home Affairs to allow for access to certain occupations, and certain fixed terms.
Individual employers working on the relevant projects are then able to negotiate individual labour agreements with the Department (in accordance with the terms set out in the overarching project agreement).
Skilled Refugee Labour Agreements
The Skilled Refugee Labour Agreement is a pilot program running until 30 June 2025 with 500 visa places available.
This program is designed to help businesses recruit skilled refugees registered under a Talent Catalog compiled by Talent Beyond Boundaries, including doctors, engineers, skilled trades workers, software developers and others.
The benefits of this, other than assisting refugees and other displaced persons, including the removal of the need for labour market testing, no minimum skills or work experience required, a reduction in the minimum income threshold, a reduced level of English, and an increased age limit.
Documents
Labour Agreements
The actual documents required depend on specific circumstances and what efforts the business has taken.
Broadly, you should work with your Hannan Tew advisor as early in advance as possible to strategically plan for this.
Business documents
- An Australian Business Number (ABN) registration certificate
- An Australian Company Number (ACN) registration certificate
- Financial statements – profit & loss + balance sheet
- Tax Documents – ATO lodged tax returns and business activity statements (BAS)
Evidence of genuine need for the position
- Evidence of labour market testing or recruitment campaigns done over time
- Evidence of participation in job/career expos (and fees) – dates, location, whether any positions were filled
- Relevant industry research in the past 12 months
- Letters of support from government authorities with responsibility for employment
Evidence of compliance and reduce need
- Evidence of pro-forma contracts that would apply to sponsored workers
- Evidence of enterprise agreements / awards (or salary tables) that would apply to sponsored workers
- Details of how the business intends to reduce their reliance on overseas workers over the course of the labour agreement
Evidence of compliance and reduce need
- Evidence of correspondence with relevant industry stakeholders, including their responses
Process
Labour Agreements
Hannan Tew will advise and guide you on the entire process from assessing eligibility to lodgement. We use an online document / information collection tool so that all your files and information are stored in one single location. You can use the Hannan Tew Portal to track the status of your matter and have a complete overview of documents required.
Before you apply
Before you apply, you should:
- assess and determine whether you meet the eligibility criteria
- speak to Hannan Tew lawyers to determine the types of steps that can be taken before, and during the process of preparing the Labour Agreement application.
Gather your documents
The Labour Agreement application is completed and submitted online via ImmiAccount, a portal managed by the Department. You will need to:
- Log-in or create an ImmiAccount on the Department’s website
- Complete the visa application form
- Attach relevant documents
Apply for the Labour Agreement
After a Global Talent Employer Sponsored (GTES) agreement is in place, the next step is to apply for a Subclass 482 nomination and visa via an ImmiAccount, a portal managed by the Department. You will need to:
- Log-in or create an ImmiAccount on the Department’s website
- Complete the nomination and visa application form
- Attach relevant documents
- Pay the visa application charges and lodge the application.
Ensure that all family members accompanying the main visa applicant are also added to your visa application.
After the application
The Department will send an acknowledgement letter (via email and/or the ImmiAccount portal messaging system) once the application has been submitted and received.
The standard processing times for Labour Agreements are around 12 months.
No updates on the application will be provided during the standard processing time. If more information is required, this will be requested via email.
Be sure to advise the Department if there are any mistakes on the application, or if the business’ circumstances change after you have applied.
Outcome
The Department will advise you of the outcome of the Labour Agreement.
If your visa application is successful, you will first be sent a draft Labour Agreement to review, and then sign. This agreement will state:
- the reference number
- the date the labour agreement starts and ends;
- the terms and conditions of the labour agreement; and
- the occupations permitted under the labour agreement (and how many spots for the first year).
Labour Agreements
Frequently Asked Questions
What is a Labour Agreement?
A Labour Agreement is a negotiated agreement between organisations and the Department of Home Affairs to access occupations that are not ordinarily sponsorable for work visas to Australia under the Skills in Demand (SID) Subclass 482 visa program.
These are typically semi-skilled occupations. Certain industries already have pre-negotiated agreements.
What visa does the Labour Agreement use?
As a labour agreement is a negotiated agreement between an organisation and the Department of Home Affairs to sponsor certain occupations – it utilises the employer-sponsored visa scheme.
This means that a company with a labour agreement can sponsor holders for the following visas:
Does a Labour Agreement lead to permanent residence?
If the organisation has negotiated as part of their labour agreement to sponsor individuals for the Employer Nomination Scheme (ENS) Subclass 186 visa – then yes, if the employer agrees to sponsor you in this way.
Broadly, you will need to have worked directly for the sponsoring organisation for at least 3 years before you apply for the ENS 186 visa.
If the organisation has not negotiated for this, then they would need to first do so to be able to sponsor for the ENS 186 visa.
What happens if I leave my employer while sponsored on a Labour Agreement?
It can be tricky – if you have been sponsored under an “off-list” occupation under a Labour Agreement, you’d either need:
- another employer who is able to sponsor for the same occupation to take over the sponsorship of your visa; or
- to apply under a different sponsorable occupation.
How long does it take to negotiate a Labour Agreement?
It can take around 12 months from submission of the Labour Agreement before you receive an outcome.
Is it easy to negotiate a Labour Agreement?
No. The government have no obligation to enter a Labour Agreement, meaning that the business case must be significantly compelling enough to convince them to approve it. This involves significant documentary evidence of why there are skill shortages for the occupation(s) that you’re seeking, and attempts that the business had made to fill these shortages.
How much does it cost to apply for a Labour Agreement?
Applications for a labour agreement are free. If you engage a lawyer / migration agent to assist you, it can cost several thousand dollars – typically depending on how many occupations you wish to negotiate for.
Can I request concessions as part of the Labour Agreement?
Yes, but these are limited (and sometimes already pre-set). Often concessions are only available if the positions are based in very regional locations.
What concessions can I request in a Labour Agreement?
Examples of the concessions that can be requested include salary requirements (no more than 10%), qualifications and work experience, English testing requirements, and age for permanent residency (no more than 55).
What happens after the Labour Agreement is approved?
The Department will typically give you an occupation ceiling for each occupation you have negotiated for. For the first year of the labour agreement, the business can sponsor up to that many visa applications.
Each subsequent year, the organisation will need to re-negotiate the occupation ceilings for that year.
What happens after my Labour Agreement has expired?
You will need to negotiate a new Labour Agreement with the Department.
Disclaimer
The information contained here is offered for informational purposes only and does not constitute legal advice or give rise to an attorney-client relationship between you and our firm. The information: (i) must be regarded as a practical guide for general information and not a process guide for determining the specific immigration requirements of the countries covered, (ii) should not be a substitute for a more indepth analysis of applicable facts and circumstances conducted by competent professionals, and (iii) does not represent an opinion from Hannan Tew or any of its agents with regard to the laws of any of the jurisdictions concerned. The information does not guarantee the outcome or approval of any particular immigration application.
What can we do for you?
Our staff are well placed to assist with all issues related to Labour Agreement applications. We have assisted a number of businesses in various industries in applying for Labour Agreements, helping employees apply for the SID Subclass 482 visa, and eventually obtaining permanent residence.
The latest Labour Agreement
blogs, written regularly
What is a Labour Agreement and why is it relevant to employer sponsored visas?
A labour agreement is a negotiated agreement between a company and the Department of Home Affairs (Department) to be able to sponsor foreign nationals for a visa. Typically, it is utilised where “standard” visa programs are not of assistance, hence why a special arrangement must be entered into. There are also several different types of labour agreements, each serving a…
Immigration policies encouraging the Technology and Innovation sector towards South Australia
On 13 May 2019, Immigration South Australia (SA) released further information relating to two Designated Area Migration Agreements (DAMA) for the State, one of which targets “innovation and technology”. Over the past year, the Australian Government have been implementing Immigration policies in a bid to increase a greater push in innovation and tech towards South Australia. This is primarily captured…
11 March 2019 updates relating to the Temporary Skill Shortage (TSS) (Subclass 482) visa
On 11 March 2019, the Department of Home Affairs (Department) announced various updates including: changes to the relevant occupation lists; the introduction of a “Health Workforce Certificate” for certain medical practitioners; a new category for businesses to become “Accredited” Business Sponsors; and Labour Agreement updates for: Aged care providers; and Minister of Religion labour agreements. Below is our summary of…
