Hammond Migration

Labour Agreements can help employers sponsor workers who would otherwise fall outside the standard framework

A Labour Agreement is a concessional agreement with the Department of Home Affairs (the Department) to permit a business to sponsor employees (or future employees) for the 482 – Temporary Skills Shortage (TSS), 186 – Employer Nomination Scheme (ENS) and 494 – Skilled Employer Sponsored Regional (SESR) visas outside of the standard framework for those visas. Labour Agreements are typically better suited to medium to large businesses; however, smaller businesses can also access an agreement in some circumstances.

There are two main types of Labour Agreement:

Company Specific Labour Agreement

  • Company Specific Labour Agreement
  • Industry Labour Agreement

There are several other uses of the Labour Agreement within the visa system, including Designated Area Migration Agreements (DAMA), Global Talent Employer Sponsored (GTES) and Project/Work Agreements. This article just covers the two main types of agreement above.

When do you use them?

The key scenarios where a Labour Agreement may be the best visa-based solution to skills or labour shortages in your business are:

  • Occupation or position you wish to sponsor is not on one of the eligible occupations lists, or is not available under a DAMA in your location
  • Requesting concessions for visa holders to English, skills or other requirements
  • Seeking a path to permanent residency for employees where there otherwise is not one

Type of agreements

Company Specific agreements are a bespoke agreement for when the occupations or concessions required do not fall under either a DAMA or Industry Labour Agreement. They are a ‘blank canvas’ agreement that is negotiated with the Department within the Labour Agreement framework. The Aged Care/Personal Care Worker concessions are available via a Company Specific Labour Agreement.

Industry agreements are pre-negotiated agreements with set occupations and concessions. They are available for the following industries:

Further details about each of the agreements and the occupations and position you can sponsor can be found here.

How do you apply?

Labour Agreements involve a similar, but more comprehensive, process to the Standard Business Sponsorship and Business Nomination applications for a 482 TSS visa. To successfully obtain a Labour Agreement, a business must show (among other requirements):

  • Financial capacity
  • Commercial need for the position
  • Extensive labour market testing
  • Compliant workplace and employment terms and conditions
  • Market rates
  • Stakeholder consultation
  • Strong ‘business case’ why the labour agreement should be approved

What happens after the Labour Agreement is approved?

Processing times for Industry agreements are generally quicker than Company Specific. Once a request for a Labour Agreement is approved, the business will be able to sponsor employees in accordance with the terms of the agreement. These applications for either the 482 TSS, 186 ENS or 494 SESR visas are made as normal through the Department’s ImmiAccount application lodgement system.

Experience

James has presented the Labour Agreement workshop to other lawyers and Migration Agents through the Migration Institute of Australia in 2021 and 2022. James has worked with clients across multiple sectors with applications for Labour Agreements.

If you are an employer and would like to book a free discussion about whether a Labour Agreement would be a suitable workforce solution for your business, please email hello@hammondmigration.com.au or complete the questionnaire here.

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