labour agreements
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Labour agreements allow organisations to sponsor “off-list” occupations (typically semi-skilled positions) for work visas.

Labour agreements are developed between the Australian Government (represented by the Department) and employers.

Overview

Labour Agreements

Australian organisations have the ability to enter into specific, negotiated agreements with the Department to access occupations that are not ordinarily sponsorable for work visas to Australia under the Skills in Demand (SID) Subclass 482 visa program. These are known as Labour Agreements.

A labour agreement allows an organisation to sponsor “off list” occupations, utilising the existing SID Subclass 482 visa. This also includes a pathway to permanent residency via the Employer Nomination Scheme (ENS) Subclass 186 visa.

There are numerous different types of labour agreements set out across the various tabs.

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Target Market
Organisations seeking to sponsor foreign nationals for positions that cannot be filled via the standard Skills in Demand (SID) Subclass 482 visa program. Typically semi-skilled positions.
Visa applicant requirements
  • Qualifications suitable for the role
  • At least 1 year of full-time experience in similar positions (in the last 5 years)
  • Genuine intention to work in the nominated position
  • Adequate arrangements for health insurance
  • Health, character, and English requirements

Additional criteria applies depending on what is negotiated as part of the labour agreement

Company (labour agreement) requirements
  • A compelling business case for the employment of overseas workers in one or more occupations where evidence of a labour market shortage
  • Actively and lawfully operating in Australia
  • Business is financially viable
  • No “adverse information” regarding the business
  • Demonstrate that there is a genuine labour market need to utilise the labour agreement program through recruitment efforts, participation in career expos, relevant industry research, and letters of support from government authorities
  • Evidence that the business will remove their reliance on overseas workers
  • Consult with relevant industry stakeholders (industry body and union, and any other agency/community group), and provide certain relevant information
Position (nomination) requirements
  • A genuine, full-time position in the sponsor’s business
  • A salary not less than the Core Skills Income Threshold (CSIT) and in line with market rates (unless concessions were agreed to)
  • Appropriate Labour Market Testing (LMT) undertaken
  • An occupation negotiated as part of the Labour Agreement

Additional criteria applies depending on what is negotiated as part of the labour agreement

Eligibility

Labour Agreements

This section sets out the requirements typically required for a business to seek a Labour Agreement.

For the Skills in Demand (SID) Subclass 482 visa itself, the requirements are broadly similar to that set out on our SID visa page, noting that some concessions to things such as salary can be negotiated as part of the Labour Agreement.

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Company requirements

In requesting the Labour Agreement, the business would need to demonstrate:

  • a compelling business case for the employment of overseas workers in one or more occupations where there is evidence of a labour market shortage;
  • that it is lawfully and actively operating in Australia for the past 12 months;
  • that it is financially viable;
  • that there is no “adverse information” regarding the business;
  • that all employees will meet appropriate salary (i.e. TSMIT or higher, and in line with Australian market rates) and employment conditions;
  • that there is a genuine labour market need to utilise the labour agreement program (i.e. that positions cannot be filled through the local labour market, and that genuine efforts have been made to recruit, employ, or engage Australian citizens/PR). This includes providing:
    • recruitment efforts;
    • information regarding participation in job/career expos (and fees) – dates, location, whether any positions were filled;
    • relevant industry research in past 12 months;
    • letters of support from government authorities with responsibility for employment
  • that they will remove their reliance on overseas workers (for business in major cities, overseas workers should not comprise more than 30% of their workforce and this limit should decrease over the life of the labour agreement);
  • that sponsored workers will have appropriate English, skills, qualifications and experience; and
  • they have consulted with relevant industry stakeholders (industry body representing your interests, union relevant to the occupation interests, and any other agency/community group impacted by the proposed labour agreement) and provide certain relevant information.
Company / Industry Specific

Labour Agreements

There are several different types of Labour Agreements depending on what the organisation is attempting to achieve.

This page contains a summary of company and industry-specific agreements and what they are typically used for.

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Company Specific

The “main” labour agreement is a company-specific agreement. This applies where a “Designated Area Migration Agreement” (DAMA) does not apply, and the organisation wishes to sponsor occupations that are not available under the standard skilled visa programs.

An organisation can outline which occupations it seeks, and negotiate with the Department. Typically positions must be ANZSCO skill level 1 to 4.

Businesses in “Category 3 regional areas” of Australia may be able to request ANZSCO skill level 5 occupations in exceptional situations.

Industry Specific Agreements

Industry Labour Agreements apply for specific industries, where the crux of the agreements have already been pre-negotiated. This means that there are already fixed terms and conditions if you enter into an industry-specific labour agreement.

The industries with which agreements already exist include:

  1. Advertising Industry (advertising specialists, graphic designers, copywriters, multimedia designers, web developers);
  2. Aged Care industry (nursing support worker, personal care assistant, aged or disabled carer);
  3. Diary industry (Senior Dairy Cattle Farm Worker and Dairy Cattle Operator);
  4. Fishing industry (Deck Hand, Fishing Hand, Master Fisher, Ship’s Engineer, Ship’s Master, Ship’s Officer, and Seafood Process Worker);
  5. Horticulture industry (various horticulture occupations);
  6. Meat industry (Skilled Meat Workers – Slicer/Boner);
  7. Dairy industry (Senior Dairy Cattle Farm Worker and Dairy Cattle Operator);
  8. Minister of Religion (Minister of Religion or Religious Assistant);
  9. Pork industry (Senior Stockperson (Piggery));
  10. Restaurant (premium dining) industry (Chef, Cook, Café or Restaurant Manager, Trade Waiter);
  11. On-Hire (Only occupations ordinarily sponsorable for a SID 482 visa) – outlined in further detail below.
On-Hire Labour Agreements

Labour Agreements

There are several different types of Labour Agreements depending on what the organisation is attempting to achieve.

This page contains a summary of on-hire agreements and what they are typically used for.

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On-Hire Labour Agreements

All SID Subclass 482 visas are subject to a condition that permits them to work only for their sponsoring employers (or an associated entity of that sponsor). This means that “on-hire” arrangements are not permitted.

An “on-hire” labour agreement specifically allows businesses to sponsor foreign nationals for the SID Subclass 482 visa, and “on-hire” them to separate unrelated businesses – also known as labour hire.

Only occupations that are ordinarily sponsorable for a SID Subclass 482 visa may be considered however (i.e. off-list occupations cannot be negotiated for “on-hire”).

DAMA / Project / Skilled Refugee Labour Agreements

Labour Agreements

There are several different types of Labour Agreements depending on what the organisation is attempting to achieve.

This page contains a summary of Designated Regional Migration Agreements (DAMA), Project Agreements and Skilled Refugee Labour Agreements, and what they are typically used for.

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Designated Area Migration Agreements (DAMA)

Designated Area Migration Agreements are large scale agreements negotiated by certain State/Territory governments (or a regional authority) with the Australian government, for their specific region.

A DAMA is a two-tier system that covers defined regional areas, being:

  1. Tier one – an overarching five year “head agreement” with the region; and
  2. Tier two – individual labour agreements between organisations in the designated regions, and the Australian Government.

Effectively, it allows the region to pre-negotiate access to certain occupations and concessions for the region based on unique regional needs. Businesses in that region, can then negotiate labour agreements with the Department to access the fixed terms and conditions pre-negotiated under the “head agreement”.

There are currently 13 DAMAs in place, as follows:

DAMAs can offer a very broad range of semi-skilled occupations for the relevant regions, as well as concessions relating to age (for SESR and PR), English language, and salary.

Project Agreements

Project Agreements are large scale agreements negotiated by project companies during the construction phase of resource or infrastructure companies.

This allows a project company to negotiate an overarching deed with the Department of Home Affairs to allow for access to certain occupations, and certain fixed terms.

Individual employers working on the relevant projects are then able to negotiate individual labour agreements with the Department (in accordance with the terms set out in the overarching project agreement).

Skilled Refugee Labour Agreements

The Skilled Refugee Labour Agreement is a pilot program running until 30 June 2025 with 500 visa places available.

This program is designed to help businesses recruit skilled refugees registered under a Talent Catalog compiled by Talent Beyond Boundaries, including doctors, engineers, skilled trades workers, software developers and others.

The benefits of this, other than assisting refugees and other displaced persons, including the removal of the need for labour market testing, no minimum skills or work experience required, a reduction in the minimum income threshold, a reduced level of English, and an increased age limit.

Documents

Labour Agreements

The actual documents required depend on specific circumstances and what efforts the business has taken.

Broadly, you should work with your Hannan Tew advisor as early in advance as possible to strategically plan for this.

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Business documents
  • An Australian Business Number (ABN) registration certificate
  • An Australian Company Number (ACN) registration certificate
  • Financial statements – profit & loss + balance sheet
  • Tax Documents – ATO lodged tax returns and business activity statements (BAS)
Evidence of genuine need for the position
  • Evidence of labour market testing or recruitment campaigns done over time
  • Evidence of participation in job/career expos (and fees) – dates, location, whether any positions were filled
  • Relevant industry research in the past 12 months
  • Letters of support from government authorities with responsibility for employment
Evidence of compliance and reduce need
  • Evidence of pro-forma contracts that would apply to sponsored workers
  • Evidence of enterprise agreements / awards (or salary tables) that would apply to sponsored workers
  • Details of how the business intends to reduce their reliance on overseas workers over the course of the labour agreement
Evidence of compliance and reduce need
  • Evidence of correspondence with relevant industry stakeholders, including their responses
Process

Labour Agreements

Hannan Tew will advise and guide you on the entire process from assessing eligibility to lodgement. We use an online document / information collection tool so that all your files and information are stored in one single location. You can use the Hannan Tew Portal to track the status of your matter and have a complete overview of documents required.

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Before you apply

Before you apply, you should:

  1. assess and determine whether you meet the eligibility criteria
  2. speak to Hannan Tew lawyers to determine the types of steps that can be taken before, and during the process of preparing the Labour Agreement application.
Gather your documents

The Labour Agreement application is completed and submitted online via ImmiAccount, a portal managed by the Department. You will need to:

  • Log-in or create an ImmiAccount on the Department’s website
  • Complete the visa application form
  • Attach relevant documents
Apply for the Labour Agreement

After a Labour Agreement is in place, the next step is to apply for a Subclass 482 nomination and visa via ImmiAccount, a portal managed by the Department. You will need to:

  • Log-in or create an ImmiAccount on the Department’s website
  • Complete the nomination and visa application form
  • Attach relevant documents
  • Pay the visa application charges and lodge the application.

Ensure that all family members accompanying the main visa applicant are also added to your visa application.

After the application

The Department will send an acknowledgement letter (via email and/or the ImmiAccount portal messaging system) once the application has been submitted and received.

The standard processing times for Labour Agreements are around 12 months.

No updates on the application will be provided during the standard processing time. If more information is required, this will be requested via email.

Be sure to advise the Department if there are any mistakes on the application, or if the business’ circumstances change after you have applied.

Outcome

The Department will advise you of the outcome of the Labour Agreement.

If your visa application is successful, you will first be sent a draft Labour Agreement to review, and then sign. This agreement will state:

  • the reference number
  • the date the labour agreement starts and ends;
  • the terms and conditions of the labour agreement; and
  • the occupations permitted under the labour agreement (and how many spots for the first year).
Labour Agreements

Frequently Asked Questions

A labour agreement is a formal arrangement negotiated directly between an organisation and the Department of Home Affairs that allows the organisation to sponsor occupations it could not otherwise sponsor under the standard skilled visa programs. These are typically semi-skilled roles that do not appear on the usual occupation lists.

A labour agreement does not replace the ordinary employer sponsored visas. Once it is in place, the business still sponsors workers through the ordinary employer sponsored visas – the Skills in Demand (subclass 482), the Skilled Employer Sponsored Regional (subclass 494) or the Employer Nomination Scheme (subclass 186). What the agreement changes is which occupations the business can use those visas for, and it can also provide concessions on requirements such as salary, English and age.

Positions must generally sit at ANZSCO skill level 1 to 4, though businesses in Category 3 regional areas may be able to request skill level 5 occupations in exceptional situations.

As a labour agreement is a negotiated agreement between an organisation and the Department of Home Affairs to sponsor certain occupations – it utilises the employer-sponsored visa scheme.

This means that a company with a labour agreement can sponsor holders for the following visas:

The Department publish processing times on their website.

If the organisation has negotiated as part of their labour agreement to sponsor individuals for the Employer Nomination Scheme (ENS) Subclass 186 visa – then yes, if the employer agrees to sponsor you in this way.

Broadly, you will need to have worked directly for the sponsoring organisation for at least 3 years before you apply for the ENS 186 visa.

If the organisation has not negotiated for this, then they would need to first do so to be able to sponsor for the ENS 186 visa.

It can be tricky – if you have been sponsored under an “off-list” occupation under a Labour Agreement, you’d either need:

  1. another employer who is able to sponsor for the same occupation to take over the sponsorship of your visa; or
  2. to apply under a different sponsorable occupation.

It can take around 12 months from submission of the Labour Agreement before you receive an outcome.

No. The government have no obligation to enter a Labour Agreement, meaning that the business case must be significantly compelling enough to convince them to approve it. This involves significant documentary evidence of why there are skill shortages for the occupation(s) that you’re seeking, and attempts that the business had made to fill these shortages.

Applications for a labour agreement are free. If you engage a lawyer / migration agent to assist you, it can cost several thousand dollars – typically depending on how many occupations you wish to negotiate for.

Yes, but these are limited (and sometimes already pre-set). Often concessions are only available if the positions are based in very regional locations.

Examples of the concessions that can be requested include salary requirements (no more than 10%), qualifications and work experience, English testing requirements, and age for permanent residency (no more than 55).

The Department will typically give you an occupation ceiling for each occupation you have negotiated for. For the first year of the labour agreement, the business can sponsor up to that many visa applications.

Each subsequent year, the organisation will need to re-negotiate the occupation ceilings for that year.

A DAMA is a labour agreement that covers a defined regional area rather than a single business. It is designed for regions with labour shortages that the standard skilled visa programs do not address.

A DAMA visa arrangement works as a two-tier system. Tier one is an overarching five year head agreement between the Australian Government and the region itself. Tier two is an individual labour agreement between a business operating in that region and the Government, made under the terms of the head agreement. Because those terms are already settled at the first tier, a business in a DAMA region does not have to negotiate from scratch, which is why a DAMA is usually faster and more accessible than a company specific labour agreement. The business must, however, first obtain endorsement from the Designated Area Representative before lodging its labour agreement request.

There are currently 13 DAMAs in place, covering regions including the Northern Territory, Far North Queensland and Townsville in Queensland, the Goulburn Valley and Great South Coast in Victoria, Orana in New South Wales, the Adelaide City Technology and Innovation Advancement and South Australia Regional agreements, and East Kimberley, Pilbara, South West, the Goldfields and Western Australia.

DAMAs can cover a very broad range of semi-skilled occupations for their regions, and can offer concessions on English language, salary and age, including age concessions for permanent residence pathways.

The deciding question is usually whether the occupation you need is available under the standard program. If the role appears on the relevant occupation list and meets the ordinary salary and skill requirements, standard sponsorship is faster, cheaper and simpler, and a labour agreement offers no advantage.

A labour agreement becomes the right route when the occupation is not on the list, when the role sits below the skill level the standard program allows, or when the business genuinely cannot meet a standard requirement and has grounds to seek a concession on salary, English or age.

Those benefits need to be weighed against the cost. A labour agreement takes around 12 months to negotiate, and because the Department is under no obligation to agree, the business case has to be properly evidenced. If your business operates in a DAMA region, check that route first, as applying under an existing head agreement is a materially shorter path than negotiating a company specific agreement.

You apply online through ImmiAccount, supported by a documented business case. There is no application charge for the agreement itself, though professional fees apply and generally depend on how many occupations you are negotiating for.

Most of the work sits in the preparation rather than the lodgement. Before applying, the business needs to establish that it has been lawfully and actively operating in Australia for at least the past 12 months, and evidence a genuine need for each occupation it wants to access. It must also have completed relevant industry research within the past 12 months, consulted the relevant industry stakeholders and retained that correspondence. Finally, it needs to show how it will reduce its reliance on overseas workers over the life of the agreement. For businesses in major cities, overseas workers should generally not exceed 30% of the workforce, and that proportion is expected to fall over time.

Expect around 12 months from submission to outcome. Once approved, the  business is granted a ceiling for each occupation in the first year, and those ceilings are renegotiated in each subsequent year.

Concessions are limited, and in some cases they are fixed by the terms of the agreement type rather than open to negotiation. The concessions most commonly available cover salary, qualifications and work experience, English language testing, and the age limit for permanent residence.

Two of those carry hard caps. A salary concession cannot exceed 10%, and an age concession for permanent residence cannot take the applicant beyond 55. Concessions are generally more readily available for very regional locations, and DAMAs in particular are structured around them.

A concession is not a waiver. The business still has to make the case for it, and the Department can decline a concession while approving the rest of the agreement.

Disclaimer

The information contained here is offered for informational purposes only and does not constitute legal advice or give rise to an attorney-client relationship between you and our firm. The information: (i) must be regarded as a practical guide for general information and not a process guide for determining the specific immigration requirements of the countries covered, (ii) should not be a substitute for a more indepth analysis of applicable facts and circumstances conducted by competent professionals, and (iii) does not represent an opinion from Hannan Tew or any of its agents with regard to the laws of any of the jurisdictions concerned. The information does not guarantee the outcome or approval of any particular immigration application.

What can we do for you?

Our staff are well placed to assist with all issues related to Labour Agreement applications. We have assisted a number of businesses in various industries in applying for Labour Agreements, helping employees apply for a Labor Agreement visa, and eventually obtaining permanent residence.

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