A Labour Agreement is a formal agreement between the Australian Government and an employer or industry group to allow the sponsorship of skilled overseas workers when there is a shortage of skilled labor in specific industries or regions that cannot be met through the standard skilled migration program. Labour agreements provide flexibility in sourcing overseas workers under tailored conditions while ensuring that local Australian workers are still prioritized.
Key Features of a Labour Agreement
- Tailored to Industry Needs: Labour Agreements are customized to address specific skills shortages in industries such as agriculture, hospitality, aged care, health care, construction, and more.
- Temporary and Permanent Visa Options: Labour Agreements can be used to sponsor workers on temporary visas like the Temporary Skill Shortage Visa (Subclass 482), or permanent visas like the Employer Nomination Scheme (Subclass 186).
- Regional and Industry-Specific: These agreements are often focused on regional areas and industries where skills shortages are most critical.
- Work Rights: Overseas workers sponsored under a Labour Agreement have full work rights for the duration of their visa.
Types of Labour Agreements
There are several types of Labour Agreements available depending on the specific needs of the employer or industry. Common types include:
- Company-Specific Labour Agreements
- Tailored to individual businesses experiencing a significant labor shortage.
- Allows businesses to sponsor overseas workers in occupations that are not on the standard occupation lists (MLTSSL, STSOL, or ROL).
- Terms and conditions are negotiated directly with the Department of Home Affairs.
- Industry Labour Agreements
- Established for entire industries facing persistent skills shortages.
- Provides businesses in specific sectors (e.g., agriculture, hospitality, or meat processing) with access to overseas workers.
- Standardized terms for all employers within the industry.
- Designated Area Migration Agreements (DAMA)
- An agreement for specific regions experiencing critical skills shortages.
- Employers in designated regional areas can access a broader range of occupations and may have concessions on English language requirements or salary levels.
- Examples include the Northern Territory DAMA and South Australia DAMA.
- Global Talent Employer Sponsored (GTES) Agreement
- Designed for startups and established businesses to bring highly skilled workers from overseas in niche fields.
- Focuses on cutting-edge technology, innovation, and emerging industries.
- Provides faster processing times and allows for highly specialized occupations not listed in the standard occupation lists.
Eligibility Requirements for Labour Agreements
To apply for a Labour Agreement, employers must meet specific requirements. The criteria vary depending on the type of Labour Agreement, but common requirements include:
For Employers:
- Demonstrated Skills Shortage: Employers must demonstrate that there is a genuine shortage of skilled Australian workers to fill the role and that efforts have been made to hire local workers.
- Labour Market Testing (LMT): Employers must show that they have conducted Labour Market Testing (LMT) by advertising the position locally before seeking to sponsor an overseas worker.
- Comply with Australian Workplace Standards: Employers must meet Australian workplace laws, including paying overseas workers at least the market salary rate or above the Temporary Skilled Migration Income Threshold (TSMIT).
- Good Standing: Employers must have a good history of compliance with immigration and workplace regulations.
For Sponsored Workers:
- Nominated Occupation: The worker’s occupation must be listed in the Labour Agreement or meet the requirements negotiated for the industry.
- Skills and Experience: Workers must possess the relevant skills, qualifications, and work experience for the nominated occupation.
- English Language Proficiency: Workers must meet the required level of English proficiency, though concessions may apply in certain Labour Agreements (e.g., DAMAs).
- Health and Character Requirements: Sponsored workers must meet Australian health and character requirements, which may involve medical examinations and police checks.
Steps to Apply for a Labour Agreement
The process of establishing a Labour Agreement involves several steps for both employers and the Australian Government:
- Request for Labour Agreement
Employers or industry bodies must submit a request to the Department of Home Affairs to establish a Labour Agreement. The request must detail the skills shortages, efforts made to recruit local workers, and the terms being sought for the agreement.
- Negotiation of Terms
The Department of Home Affairs will assess the request and negotiate the terms of the Labour Agreement. This can include concessions on salary, English language proficiency, or work experience requirements.
- Approval of Labour Agreement
Once the terms are agreed upon, the Labour Agreement is approved, and the employer or industry group can begin nominating skilled overseas workers for temporary or permanent visas.
- Sponsorship and Nomination of Workers
Once the Labour Agreement is in place, the employer can nominate workers under the agreed terms. The workers then apply for the relevant visa, such as the Temporary Skill Shortage (TSS) Visa (Subclass 482) or the Employer Nomination Scheme (Subclass 186).
Visas Supported by Labour Agreements
A Labour Agreement can be used to sponsor overseas workers for both temporary and permanent visas, depending on the terms of the agreement. Common visas sponsored through Labour Agreements include:
- Temporary Skill Shortage (TSS) Visa (Subclass 482):
- Allows skilled workers to come to Australia and work for up to 4 years in an occupation specified in the Labour Agreement.
- Employers must comply with Labour Market Testing and provide fair salary conditions.
- Employer Nomination Scheme (ENS) Visa (Subclass 186):
- Offers a pathway to permanent residency for overseas workers who have worked in a specified role for the sponsoring employer for at least 3 years.
- Skilled Employer Sponsored Regional (Provisional) Visa (Subclass 494):
- For regional employers who want to sponsor skilled workers to live and work in designated regional areas of Australia.
- Training Visa (Subclass 407):
- Allows overseas workers to participate in training programs to improve their skills and qualifications in a particular industry.
Benefits of a Labour Agreement
- Flexibility: Labour Agreements are tailored to meet the specific needs of industries or employers, providing greater flexibility in sourcing overseas talent.
- Access to a Broader Range of Occupations: Employers can nominate skilled workers in occupations that are not on the standard skilled occupation lists, especially in regional areas or emerging industries.
- Concessions for Regional Areas: Regional employers may benefit from concessions on English language proficiency, skills assessments, and salary thresholds, making it easier to fill critical roles.
Pathway to Permanent Residency: Many Labour Agreements provide a pathway to permanent residency for skilled workers, helping retain talent in regional or industry-specific roles.
How We Can Help
At A Square Migration Services, we provide comprehensive support for employers seeking to establish or apply under a Labour Agreement. Our services include:
- Assessment of Eligibility: We assess whether your business or industry qualifies for a Labour Agreement.
- Application and Negotiation: We assist in preparing and lodging the Labour Agreement application, including negotiations with the Department of Home Affairs.
- Sponsorship and Nomination Support: We help employers nominate skilled overseas workers and assist with the visa application process for those workers.
- Ongoing Compliance: We provide guidance on maintaining compliance with the conditions of the Labour Agreement and Australian immigration laws.
Tailor Your Workforce Needs with a Labour Agreement
The Australia Labour Agreement provides businesses with the flexibility to fill skills shortages in critical industries and regions. At A Square Migration Services, we can help you navigate the complexities of setting up a Labour Agreement and ensure your business has access to the skilled workforce it needs.
Contact us today to start the process of establishing your Labour Agreement and sponsoring overseas workers for your business!