Labour Agreement
Labour Agreements – Access Skilled Overseas Workers for Your Business
Labour agreements are formal arrangements between Australian employers and the Department of Home Affairs. They are designed for businesses that face a shortage of skilled labor that cannot be met locally, and where standard visa programs are not suitable.
These agreements enable approved businesses to sponsor overseas workers under specific visa streams while ensuring compliance with Australian employment laws. Typically, a labour agreement is valid for five years and can cover temporary or permanent visa pathways.
The visa programs most commonly used under labour agreements include:
- Skills in Demand (SID) Visa (Subclass 482)
- Employer Nomination Scheme Visa (Subclass 186)
- Skilled Employer-Sponsored Regional (Provisional) Visa (Subclass 494)
Labour agreements ensure that businesses can operate efficiently while maintaining Australia’s employment standards and labor protections.
Labour Agreement Streams
Labour agreements are organized into four main streams, each addressing different workforce needs:
1. Industry Labour Agreements
Industry Labour Agreements target specific sectors facing skill shortages. These agreements provide standardized terms and conditions for employment across the industry, allowing multiple businesses to access skilled overseas workers collectively.
Examples of industries include:
- Aged Care
- Fishing
- Dairy
- Meat Processing
- Snow Sports
- Advertising
- On-Hire Labour
- Pork Industry
This stream helps industries maintain productivity and address labor gaps while supporting workforce development.
2. Designated Area Migration Agreements (DAMA)
DAMAs are tailored for regional and remote areas with workforce shortages. Employers in these regions can sponsor overseas workers for a broader range of occupations, supporting local economies and community growth.
Key Points:
- Focused on regional and remote communities
- Flexible terms specific to each region
- Supports workforce sustainability and economic growth where local talent is limited
3. Project Labour Agreements
Project Labour Agreements are designed for large-scale infrastructure or resource development projects. They enable employers to access skilled workers for specialized roles that cannot be filled locally.
Benefits:
- Ensure timely completion of major projects
- Access specialized skills not available in the domestic workforce
- Complement government initiatives while protecting Australian jobs
4. Company Specific Labour Agreements
Company-specific labor Agreements are customized for individual businesses with unique skill requirements. Approval is granted when the business can demonstrate a genuine need for workers with specific expertise.
Highlights:
- Tailored to the company’s specific requirements
- Can cover temporary or permanent positions
- Considered on a case-by-case basis
Lodgement Process
Employers interested in a labour agreement must follow a structured lodgement process:
- Review the Labour Agreement Program Information Guide to confirm eligibility.
- Submit an online Labour Agreement request via ImmiAccount.
- Attach all required supporting documents, including workforce plans and evidence of recruitment efforts.
- Await assessment by the Department of Home Affairs. Approved agreements are sent to the employer for review and signature.
Agreements come into effect once all parties sign and return the document to the Department. Existing agreements nearing expiry must be renewed by submitting a new request in ImmiAccount.
Variation Requests:
Employers can request changes to their agreement, including nomination ceilings or salary levels, by submitting updated documentation, evidence of recruitment activities, and justification for the variation. Timely lodgement ensures that nominations and visa applications continue without delays.
Assessment Process
Labour agreement requests are assessed on a case-by-case basis. Processing times may vary depending on:
- Completeness of the application and supporting documents
- Response time to requests for additional information
- Complexity of the agreement and industry requirements
Labour Agreement-Related Nominations and Visa Applications
Once a labour agreement is approved, it specifies:
- The number of skilled overseas workers an employer can nominate each year
- The eligible visa subclasses for sponsorship
- The occupations that can be nominated
Employers must lodge a nomination application through ImmiAccount. Once approved, a Transaction Reference Number (TRN) is issued to the nominated worker, who can then lodge their visa application under the corresponding labour agreement stream.
Sponsor Obligations
Labour agreements are legally binding contracts. Employers must adhere to the terms, including wages, working conditions, and compliance with Australian employment laws.
The Department of Home Affairs and the Australian Border Force may conduct audits or site visits to ensure compliance. Failure to meet obligations can result in suspension or termination of the agreement and potential penalties.
Benefits of Labour Agreements
- Access skilled workers when local supply is insufficient
- Streamline visa sponsorship processes compared to standard visa programs
- Support regional, industry, project, or company-specific labor needs
- Ensure compliance with Australian employment standards
- Enable both temporary and permanent employment solutions
Start Your Application Today
Ensure your business can access the skilled workers it needs to thrive. Contact A2MS today to explore Labour Agreement options and simplify the visa sponsorship process.
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Visa and Migration
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