Labour Agreements

A ‘Labour Agreement’ is a special agreement between an organisation and the Australian government that enables the sponsorship of overseas workers when the standard visa programs do not have available positions.

To secure a ‘Labour Agreement’, organisations must demonstrate to the Department of Home Affairs (DOHA) that there is a genuine shortage of workers in a specific occupation and that the business is committed to prioritising the employment of Australian workers over hiring foreign labour.

Where a business intends to hire a large number of international workers and the Skills In Demand (subclass 482) visa program is not suitable, a ‘Labour Agreement’ can be negotiated between the Department of Home Affairs (DOHA) and the employer or the employer’s industry body.

Labour Agreement Concessions

The terms of a Labour Agreement, including possible concessions around age, English language, salary, and skills, are negotiated on a case-by-case basis with the Department of Home Affairs (DOHA). To obtain any concessions, a compelling business case must be presented.

English Language Requirements
Generally, overseas workers must score at least 5.0 overall on the IELTS test, with no band lower than 4.5 (or an equivalent test score). Exemptions may apply to passport holders from certain countries or individuals with five cumulative years of education in English-medium institutions. Requests for English language concessions must be supported by a strong business case.

Salary Concessions
Normally, employers must offer a salary at or above the Temporary Skilled Migration Income Threshold (TSMIT). However, a concession of up to 10% may be considered if a solid business justification is provided.

Skills and Experience
Labour Agreements usually require overseas workers to have qualifications equivalent to an AQF Certificate III and a minimum of three years’ relevant work experience. Industry registration may also be necessary. Concessions to these requirements can be granted if the business case is sufficiently strong.

Stakeholder Consultation
As part of the application, employers must consult with relevant peak bodies, including unions. While endorsement from these stakeholders is not mandatory, documentation of the consultation process—such as emails, letters, and meeting notes—is essential.

Suitability for a Labour Agreement
Labour Agreements are typically suitable for businesses facing genuine, ongoing challenges in hiring locally. Applications should be backed by verifiable recruitment efforts. These agreements are ideal when sponsoring multiple foreign workers is necessary.

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Types of Labour Agreements

Company-Specific Labour Agreements
Tailored agreements between individual employers and the Australian Government, assessed on a case-by-case basis.

Industry Labour Agreements
Created for industries with a recognised shortage of workers. Businesses within that sector can apply under the standard terms set by the Department.

Designated Area Migration Agreements (DAMA)
These agreements target specific regions in Australia with skill shortages. State or Territory governments apply for DAMAs, enabling local employers to hire skilled overseas workers more flexibly.

Global Talent Scheme Agreements
Now a permanent offering, this stream allows employers to sponsor highly specialised talent for niche or innovative roles that are difficult to fill through the general skilled migration program.

Project Agreements
Designed for large-scale infrastructure or resource projects, these agreements allow companies to sponsor workers for specific phases (typically construction), under terms negotiated through a Deed of Arrangement.

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