As part of the regional migration program, employers can employ overseas workers under a labour agreement. A labour agreement is a formal contract negotiated between the Australian government and employers.
In effect for five years, they are usually granted under one or more of the following visa programs:
- Skills in Demand (subclass 482) Visa
- Employer Nomination Scheme (subclass 186) Visa
- Skilled Employer Sponsored Regional (Provisional) (Subclass 494) Visa
- An employer needs to make a very strong case for needing a labour agreement.
Types of Labour Agreements
There are five types of labour agreements which each have a specific purpose.
Company-specific Labour Agreements
Company-specific labour agreements are for employers where:
- A genuine skills need is not already covered by an industry labour agreement
- Where a Designated Area Migration Agreement or project agreement is not in place
- The occupation(s) in shortage are not already available under the standard visa programs (on the combined list of eligible occupations)
Designated Area Migration Agreements
A Designated Area Migration Agreement 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.
Industry Labour Agreements
Industry labour agreements are for a specific industry with fixed terms and conditions. The industry must show ongoing shortages. There are currently ten industry labour agreements in place. These are:
- Advertising
- Aged Care
- Dairy
- Fishing
- Meat
- Minister of Religion
- On-hire
- Pork
- Restaurant (premium dining)
- Horticulture
Project Agreements
Project agreements are for project companies with genuine skills shortages during the construction phase of resource or infrastructure projects.
Global Talent Employer Sponsored Agreements
Global talent employer sponsored agreements allow employers to sponsor workers for highly skilled niche positions that can’t be filled by Australian workers or through other standard visa programs.
Obtaining a Labour Agreement
In order for employers to obtain a labour agreement, they must read the Labour Agreement Program Information Guide available on the Department of Home Affairs website to determine if they meet the minimum requirements for lodging an application for a labour agreement.
Once an employer is deemed eligible for a labour agreement, they can lodge a labour agreement request using the labour agreement request form. They must attach all supporting documentation to the labour agreement request.
Once a labour agreement request is received, the information will be assessed, and applicants will be advised of the outcome. If the labour agreement request is approved, a labour agreement document will be sent to the applicant for review and signing. The labour agreement will come into effect once the document is signed by all parties.
Employers with an existing labour agreement that is due to expire but wish to renew it will need to lodge a new labour agreement request.
Labour Agreement Assessment Process
Labour agreements are assessed on a case-by-case basis. The assessment can take up to six months. Processing times vary based on:
- Whether a complete application has been lodged with all necessary supporting documents
- How quickly applicants respond to requests for information
Additional Information About Labour Agreements
The labour agreement will outline the number of skilled overseas workers an employer can nominate each year of the agreement. It will also advise what visas can be used to sponsor skilled overseas workers and the occupations.
There are a range of legislated sponsorship obligations that employers must adhere to as part of the terms of the labour agreement. These obligations generally align with the obligations applicable to standard business sponsors. Employers who fail to comply with the labour agreement or legal obligations could be subjected to suspension or termination of the labour agreement. Sanctions, penalties or other enforcement measures may also be considered.
Compliance with the labour agreement may be monitored through audits and site visits by the Department of Home Affairs and Australian Border Force.
Labour agreements provide a beneficial alternative for employers, ensuring they have access to specialised skills to address their labour shortages.
To learn more about labour agreements or any other aspect of migration, contact the team of experienced registered migration agents at Visa Solutions Australia. Book a consultation.
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