Labour Agreements

Labour Agreements for Australian Employers

Sponsor skilled workers when standard visa programs don’t fit your business.

A Labour Agreement is a formal, binding arrangement between an Australian employer (or an industry body or regional authority) and the Australian Government. It lets businesses sponsor skilled overseas workers where the standard employer-sponsored visas — the Skills in Demand (Subclass 482), Employer Nomination Scheme (Subclass 186) and Skilled Employer Sponsored Regional (Subclass 494) — do not fit the occupation, location or business model. Each agreement is negotiated individually to address specific labour shortages, while ensuring compliance with Australian workplace laws and market salary requirements.

At Tolic Lawyers, we help Australian businesses identify the right labour agreement pathway, build the business case, negotiate with the Department of Home Affairs, and run the resulting nominations and visa applications.

Types of labour agreements

Company-Specific Labour Agreements (CSLA)

• Tailored to a single employer’s workforce needs.
• The employer must demonstrate genuine, ongoing labour shortages in occupations not on the standard skilled occupation lists, supported by a detailed business case and evidence of local recruitment efforts.
• Concessions are negotiated case-by-case; overseas workers generally cannot exceed one-third of the workforce.

Industry Labour Agreements (ILA)

• Designed for sectors with identified, ongoing shortages, with pre-set occupation lists and standardised (non-negotiable) terms.
• Examples include the Aged Care, Meat Industry, On-Hire, Dairy, Fishing, Horticulture and Restaurant (Fine Dining) labour agreements.
• Some — such as the Aged Care Industry Labour Agreement — require a memorandum of understanding (MOU) with the relevant union before lodging.

Designated Area Migration Agreements (DAMA)

• A regional agreement between the Commonwealth and a state, territory or regional authority — there are currently around 12 DAMA regions (for example, the Northern Territory and Far North Queensland).
• Allows employers in that designated area to access a broader range of occupations and concessions on age, English, salary and skills.
• Two-tier framework: a 5-year head agreement for the region, then an individual labour agreement for the employer — requiring endorsement by the Designated Area Representative (DAR) before the request to the Department.

Benefits of a labour agreement

• Access to occupations not on the standard skilled lists.
• Possible concessions on English, age, skills and salary thresholds.
• Flexibility to address specific, evidenced skills shortages.
• A pathway to permanent residency, usually via the Subclass 186 Labour Agreement stream.

Employer obligations

• Meet all sponsorship obligations — record-keeping, non-discriminatory recruitment, and paying the Skilling Australians Fund (SAF) levy.
• Comply with Australian workplace laws and the agreed terms and ceilings.
• Undertake genuine Labour Market Testing (LMT) unless an exemption applies.

When should you consider a labour agreement?

A labour agreement may be the right solution for your business if:

• the occupation you need is not on the standard skilled occupation lists and isn’t covered by the Subclass 482 or 494;
• your business operates in a regional area or niche industry facing ongoing labour shortages;
• you require more flexible visa conditions than the standard Skills in Demand process allows; or
• you need access to lower skill levels, or age, English or salary concessions not available under the traditional pathways.

What does a labour agreement include?

Each agreement sets out customised conditions, including:

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; and
• leverage regional migration incentives through DAMA arrangements.

How Tolic Lawyers can help with labour agreements

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 labour agreement nominations and Subclass 482, 494 and 186 visa applications; and
• managing compliance and ongoing reporting obligations.

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

Frequently asked questions

What is a labour agreement?

A formal, binding agreement between an Australian employer (or industry body or regional authority) and the Australian Government that allows the sponsorship of skilled overseas workers where standard employer-sponsored visas don’t fit the occupation, location or business model.

What types of labour agreements are there?

Five main types: Company-Specific, Industry and Designated Area Migration Agreements (DAMA)

When is a labour agreement better than a 482 or 494 visa?

When the occupation isn’t on the standard skilled lists, your business is in a regional area or niche industry, or you need concessions on age, English, skills or salary that the standard Subclass 482 and 494 pathways don’t allow.

Can a labour agreement lead to permanent residency?

Yes. Labour agreements usually offer a pathway to permanent residence through the Subclass 186 Labour Agreement stream, depending on the terms negotiated.

What is a DAMA?

A Designated Area Migration Agreement — a regional arrangement giving employers in that area access to additional occupations and concessions. It uses a two-tier structure: a 5-year regional head agreement, then an individual labour agreement, with endorsement required from the Designated Area Representative.

How do I apply for a labour agreement?

Requests are lodged through ImmiAccount with a business case and supporting evidence. The Department assesses the request against program policy and skilled-visa priorities, and if approved, the employer signs the agreement and can then lodge nominations under it.

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Suite 19/103 George Street, Parramatta NSW 2150

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Disclaimer: This page is general information only and is current as at June 2026. It is not legal or migration advice. Labour agreement types, concessions, salary thresholds and DAMA arrangements change, and each matter depends on its own facts. Please obtain advice tailored to your business from a qualified legal practitioner before acting. Liability limited by a scheme approved under Professional Standards Legislation.