Labour agreements can provide a viable solution when your business is facing skills shortages, and standard (mainstream) visa programs are not available to source overseas workers. Labour agreements allow Australian businesses to sponsor skilled foreign workers when local talent isn’t available.
If you are interested in understanding how your business could benefit from a labour agreement, we’ve outlined the key considerations, eligibility criteria, and benefits on this page.
Visa Solutions Australia has over 20 years of experience helping businesses identify the most optimum Australian visa pathways to assist with their operations. If you need assistance with Australian Labour Agreements, please reach out to our team.
Labour agreements are formal contracts negotiated between Australian employers and the Australian Government. The agreement allows businesses to sponsor skilled foreign workers for a skilled visa enabling them to work in Australia for a specified period, in an approved occupation.
Generally in effect for five years, labour agreements are designed for businesses that have a genuine need to hire skilled overseas workers for positions that cannot be filled by Australian workers.
Labour agreements are usually granted under one or more of the following visa programs:
There are five types of labour agreements, each serving a different purpose.
Developed directly with an employer, a company specific labour agreement features terms and conditions that are considered on a case-by-case basis. Employers requesting a specific labour agreement must provide an evidence-based case demonstrating they have a genuine need for a labour agreement.
This is a formal agreement between the Australian Government and a regional, state or territory authority. It provides access to more overseas workers than the standard skilled migration program.
Designated Area Migration Agreements are intended to help support economic performance in regional areas of Australia. A DAMA provides access to more overseas workers than the standard skilled migration program and provides flexibility for regions to address their unique economic and labour market conditions. There are currently 12 DAMAs in place relevant to regions throughout Australia.
This agreement allows employers to sponsor workers for highly skilled niche positions that can’t be filled by Australian workers or through other standard visa programs.
The GTES program was designed to assist start-up businesses operating in the stem-related field and established businesses fill highly skilled, specialised and niche roles.
These are agreements for a specific industry with fixed terms and conditions. The industry must show ongoing shortages and extensive consultation within the industry. There are currently nine industry agreements in place. These are:
These agreements are for project companies with genuine skills shortages during the construction phase of resource or infrastructure projects.
The Labour Agreement Program is designed for businesses to sponsor skilled foreign workers when there is a demonstrated need that cannot be met in the Australian labour market. A labour agreement can be requested where:
More information on labour agreement program eligibility can be found in the Labour agreement program information guide (537KB PDF)
Employers wanting to request a labour agreement are required to:
Labour agreement requests are assessed on a case-by-case basis with processing times varying based on prevailing circumstances such as:
As a labour agreement sponsor, employers must comply with sponsorship obligations. These include:
Each labour agreement has its own template that outlines the terms, conditions and requirements of the labour agreement as well as the specific details of each labour agreement.
The Company Specific Labour Agreement template is below – noting that it will be adapted dependant on negotiations with the relevant employer.
For Industry labour agreements, the templates are as follows:
Labour agreements are generally in effect for up to five years.
The visa application process can be complex and using a migration agency can ensure that you are not only eligible to enter into a labour agreement but that you also have all the required documentation to support your request. A registered migration agent will also be able to provide updates on the status of your application.
The subclass 186 Employer Nomination Scheme Visa is for skilled workers who currently work or will work for an employer who has a labour agreement. The skilled worker must be nominated by their employer. Foreign workers must have an occupation on the list of eligible occupations.
The subclass 482 Temporary Skills Shortage Visa is for skilled workers nominated by an employer who has a labour agreement. Workers must be nominated to work in a specific occupation under the terms of the labour agreement.
The subclass 494 Skilled Employer Sponsored Regional (Provisional) Visa is for skilled workers nominated by an employer who has a labour agreement. Workers must be nominated to work in a specific occupation under the terms of the labour agreement.
Labour agreement requests are assessed on a case-by-case basis with processing times varying based on prevailing circumstances.
Labour agreements enable approved businesses to sponsor skilled foreign workers to fill positions where there is no local talent available. Labour agreements are utilised where standard temporary or permanent visa programs are not available.
Labour agreements are managed outside of Australia’s standard visa programs and can only be accessed in limited or exceptional circumstances where standard temporary or permanent visa programs are not available. The Department of Home Affairs is not under obligation to enter into labour agreements.
If an existing labour agreement is due to expire, employers need to lodge a new labour agreement request in ImmiAccount.
Employers can demonstrate a genuine need for overseas workers by providing evidence of recruitment efforts such as job advertisements, participation in job and career expos and relevant industry research.
While there are no fees to lodge a labour agreement request, fees will apply for nominating employees. The nomination fee will vary depending on the labour agreement stream.
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