Labour Agreements

A Labour Agreement is a formal arrangement between an employer and the Australian Government that allows the employer to sponsor overseas workers for skilled positions that cannot be filled locally and are not otherwise available through the standard migration program.
17

These agreements are negotiated individually and are designed to address specific labour shortages while ensuring compliance with Australian workplace laws and market salary requirements.

 

Types of Labour Agreements

  1. Company-Specific Labour Agreements
  • Tailored to a single employer’s workforce needs
  • Employer must demonstrate genuine and ongoing labour shortages in occupations not on standard skilled occupation lists
  • Concessions negotiated on a case-by-case basis
  1. Industry Labour Agreements
  • Designed for sectors with identified, ongoing shortages
  • Have pre-approved occupation lists and standardised terms
  • Examples include:
    • Aged Care Labour Agreement
    • Meat Industry Labour Agreement
    • On-Hire Industry Labour Agreement
    • Dairy Industry Labour Agreement
    • Fishing Industry Labour Agreement
  1. Designated Area Migration Agreements (DAMA)
  • Regional agreement between the Commonwealth and a specific state/territory or regional authority
  • Allows employers in that designated area to access a broader range of occupations and concessions
  • Two-tier process:
    1. Endorsement by the Designated Area Representative (DAR)
    2. Labour Agreement request to DHA
  • Examples: Northern Territory DAMA, Far North Queensland DAMA
  1. Project Agreements
  • For large-scale infrastructure or resource projects
  • Allow multiple employers (subcontractors) to sponsor overseas workers under one agreement
  • Often used in construction, mining, and energy sectors
  1. Global Talent Employer Sponsored (GTES) Agreements
  • For attracting highly skilled, niche workers where standard visas do not meet employer needs
  • Two streams:
    • Established Business stream – for companies with an annual turnover of at least AUD 4 million
    • Start-up stream – for start-ups in tech-based or STEM fields

 

Benefits of Labour Agreements

  • Access to occupations not on standard lists
  • Possible concessions on English, age, and salary thresholds
  • Flexibility to address specific skills shortages
  • Can provide pathways to permanent residency

 

Employer Obligations

  • Meet sponsorship obligations (record-keeping, non-discriminatory recruitment, paying the Skilling Australians Fund levy, etc.)
  • Comply with Australian workplace laws
  • Undertake genuine LMT unless exempt

 

When Should You Consider a Labour Agreement?

Labour Agreements may be the right solution for your business if:

  • The occupation you need is not listed on the standard skilled occupation lists and visa do not provide for it (482 Skills in Demand visa or 494 Visa)
  • Your business operates in a regional area or niche industry facing ongoing labour shortages
  • You require visa conditions that are more flexible than those available through the standard SID 482 visa process
  • You need access to lower skill levels, age concessions, or salary concessions unavailable under traditional pathways.

 

📋 What Does a Labour Agreement Include?

Each agreement sets out customised conditions, including:

  • Approved occupations and position numbers
  • Minimum salary thresholds (aligned with the Annual Market Salary Rate)
  • Required qualifications and experience
  • Commitments to training Australian citizens or permanent residents
  • Concessions such as age, English, or skills assessment
  • Options for a pathway to permanent residency (usually via Subclass 186)

 

🎯 Why Choose a Labour Agreement?

Labour Agreements are a strategic workforce planning tool that help businesses:

  • Sponsor skilled workers when standard visa programs are too restrictive
  • Secure long-term staffing solutions in hard-to-fill roles
  • Access tailored visa options under the Skills in Demand framework
  • Leverage regional migration incentives through DAMA arrangements

 

✅ How Tolic Lawyers Can Help with Labour Agreements

At Tolic Lawyers, we guide Australian businesses through every stage of the Labour Agreement process, including:

  • Assessing business eligibility and workforce needs
  • Drafting the business case and supporting documents
  • Negotiating with the Department of Home Affairs
  • Preparing for Labour Agreement nomination and Subclass 482/494/186 visa applications
  • Managing compliance and ongoing reporting obligations

Whether you’re seeking a company-specific agreement or exploring DAMA sponsorship, our legal team ensures your case meets immigration policy and industry requirements.

 

💼 Book Your Free 15-Minute Employer Consultation

Take the first step toward solving your skilled labour shortage. Speak with our expert migration lawyers about your options.

📞 Schedule your FREE 15-minute discovery call to:

✔️ Find out if a Labour Agreement suits your business
✔️ Explore options for Subclass 482, 494, or 186 visa sponsorship
✔️ Learn how to access DAMA regional migration concessions

 

Tolic Lawyers – Employer Sponsorship. Legal Expertise. Business-Focused Solutions.