Salary

In general, overseas workers should be offered a salary at or above the Temporary Skilled Migration Income Threshold (TSMIT), currently set at AUD70,000. However, in certain circumstances where there is a compelling business case, a concession of up to 10% of the TSMIT may be granted.

Skills

Labour Agreements typically require overseas workers to hold qualifications equivalent to an Australian Qualification Framework (AQF) Certificate III and have at least three years of relevant work experience. Additionally, they must meet industry registration requirements to ensure their skills comply with Australian standards.

Limited exceptions to the qualification and experience requirements may be considered based on a strong business case.

Please note that these concessions are subject to negotiation and assessment by the Department of Home Affairs (DOHA) on an individual basis.

Stakeholder Consultation

As part of the application process, it is necessary to conduct extensive “Stakeholder Consultation” with the peak body representing your organization’s interests and the peak body representing the interests of your Australian employees, typically the relevant union.

This requirement ensures that prioritising employment and training opportunities for Australians remains a primary focus and that the recruitment of overseas workers under a ‘Labour Agreement’ is clearly in the national interest.

While it is beneficial to obtain support from each stakeholder body when presenting to the Department of Home Affairs (DOHA), it is not mandatory. However, comprehensive records of the consultation process (such as emails, letters, and meeting notes) should be provided to the Department.

Suitability of a Labour Agreement

Due to the complexity involved, it is advisable to initiate the process of applying for a Labour Agreement when there is a significant number of workers to be sponsored, and when there is genuine difficulty in sourcing such employees within Australia. This difficulty should be supported by verifiable evidence of previous recruitment efforts. There are a few different types of ‘Labour Agreements’ that can be negotiated.

Company-Specific Labour Agreements

These agreements are made between a specific organisation and the Australian government, and they are evaluated on a case-by-case basis by the Department.

Industry Labour Agreements

When the Department recognizes an ongoing shortage of labour in a particular industry, it can implement an “Industry Labour Agreement” that businesses can apply for.

Designated Area Migration Agreements (DAMA)

DAMAs allow specified areas facing skill shortages to hire international workers. State and Territory governments and Planning Commissions are responsible for applying for this agreement, enabling skilled migrants to apply under it.

Global Talent Scheme Agreement

This is a newly introduced category by the government, now made permanent. It allows businesses to sponsor workers for highly specialised positions in niche fields.

Project Agreements

Project Agreements are designed for companies engaged in project-based work, particularly during the construction phase of resource or infrastructure programs, where there is a genuine shortage of skills.

These types of ‘Labour Agreements’ are negotiated through a “Deed of Arrangement” by the project company, and individual ‘Labour Agreements’ are then established directly with employers.

Here’s how we assist:

Our experienced team are equipped to provide comprehensive assistance and maximize the chances of success for your application. We provide an initial consultation to all potential clients, where we comprehensively explain the legal aspects of Labour Agreements and associated visa applications. We will guide you through the entire process.