Not every occupation – or every employment arrangement – fits neatly into the standard skilled visa programs. A Labour Agreement is how we solve that. It’s a formal, five-year arrangement negotiated directly with the Department of Home Affairs that lets an employer sponsor overseas workers in occupations, at salary levels, or on terms that sit outside the standard Skills in Demand (subclass 482), Employer Nomination Scheme (subclass 186) or Skilled Employer Sponsored Regional (subclass 494) settings.
We’ve negotiated Labour Agreements for employers who simply couldn’t get there any other way – the role wasn’t on an occupation list, the standard salary or English settings didn’t reflect the reality of the job, or the business needed a sponsorship framework built around its own workforce plan rather than a generic one.
What Is a Labour Agreement?
A Labour Agreement is an agreement between an organisation and the Commonwealth of Australia that allows the business to sponsor skilled and semi-skilled overseas workers where there’s a demonstrated labour market need that standard visa programs don’t cover. Once approved, the agreement itself is the employer’s sponsorship approval – a separate Standard Business Sponsorship isn’t required. There’s no cost to request a Labour Agreement; government fees apply at the nomination and visa application stages, and nominations remain subject to the Skilling Australians Fund (SAF) levy in the same way as other employer-sponsored nominations.
Types of Labour Agreements
- Company Specific Agreements – a bespoke arrangement negotiated with the Department where a business’s needs don’t fit an existing Industry Agreement or DAMA. This is the ‘blank canvas’ option and the one that generally takes the most work to negotiate.
- Industry Labour Agreements – pre-negotiated, fixed-term agreements covering specific sectors, including Aged Care, Dairy, Horticulture, Meat, Pork, Fishing, On-Hire, Minister of Religion, Restaurant (Fine Dining) and Advertising. Terms and concessions are set in advance, so there’s less room to negotiate but a faster path to certainty.
- Designated Area Migration Agreements (DAMA) – regional agreements between the Commonwealth and a state, territory or regional authority, giving employers in that region access to a broader occupation list. A business first needs endorsement from the region’s Designated Area Representative before lodging the DAMA labour agreement request with the Department.
- Project Agreements – for project companies facing workforce shortages during construction or resources projects, including those endorsed under frameworks such as the China-Australia Investment Facilitation Arrangement.
Requirements
- Be nominated to work in a specified occupation under the terms of a Labour Agreement.
- Unless otherwise specified in the Labour Agreement, have gained at least 12 months of relevant full-time work experience, or equivalent, within the last 5 years.
- Work carried out on a part-time or casual basis must be equivalent to at least 12 months of full-time work.
- Have a relevant skills assessment if this is required for your occupation.
- Work only for your sponsor.
- Meet minimum standards of English language proficiency unless you’re exempt from needing to show this.
Ready to Move Forward?
If a standard sponsorship pathway doesn’t fit your business – whether that’s the occupation, the salary settings, or the numbers you need to bring in – a Labour Agreement might be the answer. Get in touch and we’ll talk you through whether it’s the right fit before you commit to the process.
Frequently Asked Questions
What exactly is a Labour Agreement, and how is it different from a Standard Business Sponsorship?
A Standard Business Sponsorship (SBS) gives a business access to the standard occupation lists and settings under the 482, 186 and 494 programs. A Labour Agreement is a separate, negotiated arrangement used when the occupation isn’t on those lists, or when the standard salary, English or skills settings don’t reflect the role. Once you hold an approved Labour Agreement, it operates as your sponsorship approval in its own right – you don’t also need an SBS alongside it.
What types of Labour Agreements can an employer apply for?
Four broad categories:
- Company Specific Agreements (bespoke, negotiated individually)
- Industry Labour Agreements (fixed-term agreements for sectors such as aged care, meat, horticulture and on-hire)
- Designated Area Migration Agreements or DAMAs (regional agreements giving access to a wider occupation list in a specific area)
- Project Agreements (for large infrastructure or resources projects)
What is a Designated Area Migration Agreement (DAMA)?
A DAMA is a formal agreement between the Commonwealth and a state, territory or regional authority that gives employers in that designated area access to additional occupations and concessions not available under the standard skilled migration program. Individual businesses still need to be endorsed by the region’s Designated Area Representative before lodging their own labour agreement request with the Department. A DAMA won’t be endorsed for an industry that’s already covered by a fixed-term Industry Labour Agreement.
Which visas can be granted under a Labour Agreement?
Depending on the terms of the specific agreement, the Department can grant the Skills in Demand visa (subclass 482) Labour Agreement stream, the Employer Nomination Scheme visa (subclass 186) Labour Agreement stream, and the Skilled Employer Sponsored Regional visa (subclass 494) Labour Agreement stream. Not every agreement covers all three – it depends on what’s negotiated.
Is there a cost to request a Labour Agreement?
There’s no government fee to request the agreement itself. Costs arise at the nomination and visa application stages, and nominations made under a Labour Agreement remain subject to the Skilling Australians Fund (SAF) levy, the same as other employer-sponsored nominations.
How long does a Labour Agreement last?
Labour Agreements are generally in effect for five years, during which the business can lodge nominations for workers under the agreement’s terms without renegotiating from scratch each time.
Do I need a Standard Business Sponsorship as well as a Labour Agreement?
No. If you hold an approved Labour Agreement, that agreement is your sponsorship approval – it replaces the need for a separate Standard Business Sponsorship for the roles covered by the agreement.
How long does it take to negotiate and have a Labour Agreement approved?
It varies considerably by type. Company Specific Agreements usually take the longest, because they require a full evidence-based business case and direct negotiation with the Department. Industry Agreements and DAMAs tend to move faster because the terms are largely pre-negotiated. The Department also varies agreement terms from time to time – occupation lists, salary thresholds and other settings can change – so it’s worth engaging early and confirming current terms before you lodge.
Disclaimer!
Content on this page is for informational purposes only and not intended as legal advice, nor should it be relied on as such. Australian immigration law is complex and its policies and visa eligibility criteria are changing regularly.