Labour Agreements allow employers to negotiate with the Government for concessions to standard visa settings to address specific business or industry needs.
As a result of recent legislative amendments, the Minister now has clear statutory authority to determine certain visa settings.
While visa settings have been negotiable via Labour Agreements for some time, the amendments aim to clarify what can be negotiated so that they are more accessible to employers.
Read on to understand the flexibilities Labour Agreements could provide.
- How Labour Agreements Work
- Legislative Amendments | Visa Settings That can be Negotiated with the Minister
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- 482 Skills in Demand (SID) Visa Labour Agreements
- 186 Permanent Residence Visa Labour Agreements
- 494 Regional Visa Labour Agreements
- How Does This Impact Pending and Existing Labour Agreements?
- Negotiating a Positive Outcome
How Labour Agreements Work
Labour Agreements operate as a separate stream within the standard 482, 494 and 186 employer-sponsored visa programs, providing flexibility via concessions to the usual eligibility criteria that would apply.
There are three main types of Labour Agreements – company specific, industry and DAMA (Designated Area Migration Agreement).
Project agreements are also available for project companies experiencing skills shortages during the construction phase of resource or infrastructure projects.
Industry Labour Agreements currently exist for the below industries.
- Advertising
- Aged Care
- Dairy
- Fishing
- Horticulture
- Meat
- Minister of Religion
- On-hire
- Pork
- Restaurant (Premium Dining)
Depending on the Industry Labour Agreement, an employer can access pre-negotiated concessions for visa eligibility requirements such as eligible occupations, visa durations, permanent residence.
13 DAMA Labour Agreements are currently available for the below regions:
- The Goldfields, WA
- Pilbara, WA
- South West, WA
- East Kimberley, WA
- Western Australia
- Adelaide City (Technology and Innovation Advancement), SA
- Far North Queensland, QLD
- Goulburn Valley, VIC
- Great South Coast, VIC
- Northern Territory, NT
- Orana, NSW
- South Australia Regional, SA
- Townsville, QLD
Depending on the DAMA, employers can access pre-negotiated concessions for visa eligibility criteria, such as eligible occupations (skilled and semi-skilled), minimum salary thresholds and maximum age limits.
Company-specific Labour Agreements allow employers to request for specific concessions to the standard visa requirements.
The recently amended legislation on 14 December 2024 clearly specifies the Company-specific Labour Agreement visa settings that businesses can negotiate with the Minister. Read on to understand more.
Legislative Amendments | Visa Settings That can be Negotiated With The Minister
Legislative amendments on 14 December 2024 provide clear statutory authority for the Minister to determine settings for Labour Agreements including:
- Who the Minister may enter into a Labour Agreement with;
- Matters that can be negotiated in a Labour Agreement; and
- The ability to amend a Labour Agreement by relevant parties after it is in effect.
This may involve visa settings related to:
- English language proficiency
- Age
- Qualifications and work experience
- Skills assessments
- Pathways to Permanent Residence (PR)
- Salary
- Sponsorship obligations
- Eligible occupations
The amendments ensure the Minister's discretionary powers are more clearly specified in legislation so that employers can better understand the visa settings that can be negotiated via Company-specific Labour Agreements.
Here's a summary.
482 Skills in Demand (SID) Visa Labour Agreements
Negotiable 482 Visa requirements that the Minister can determine:
- Whether mandatory Skills Assessments apply, and if required – the relevant skills assessing authority, person or body for the assessment.
- The period of work experience required to work in a nominated occupation for the visa or a related field.
- Skills, qualifications and employment background requirements.
- English language requirements.
As Skills Assessments can take up to 3 or 4 months to complete, negotiating a concession can streamline the sponsorship process, making it faster and easier for employers to engage migrant workers.
186 Visa Permanent Residence (PR) Labour Agreements
Negotiable 186 Visa requirements that the Minister can determine:
- The period of stay required before becoming eligible to apply for Permanent Residence (PR) through the 186 Temporary Residence Transition (TRT) Stream. Alternative requirements and a concession for the period of stay may be negotiated.
- Whether the applicant must be under the age of 45 at the time of applying for a 186 Visa under a Labour Agreement. Alternative requirements to meeting the age requirement may be negotiated.
- Qualifications, experience and skills requirements.
- English language requirements.
- Whether mandatory skills assessments apply, and if required – the relevant skills assessing authority, person or body for the assessment.
494 Regional Visa Labour Agreements
Negotiable 494 Visa requirements that the Minister can determine:
- Whether the applicant must be under the age of 45 at the time of applying for a Subclass 494 Visa under a Labour Agreement. Alternative requirements to meeting the age requirement may be negotiated.
- English language requirements.
- Skills, qualifications and employment background requirements.
- The period of work that an applicant must have worked in their nominated occupation or a related field.
How Does This Impact Pending and Existing Labour Agreements?
These flexibilities may be available to visa applications for Labour Agreements that have been:
- Lodged but not finalised/determined before 14 December 2024
- Submitted on or after 14 December 2024
Labour Agreements entered into and still in effect immediately before 14 December 2024 continue to have effect.
The legislative amendments do not have any impact on existing Labour Agreement processes. Rather, they support existing policy settings of the Labour Agreement program and improve transparency around the flexibilities that may be available.
Negotiating a Positive Outcome | Labour Agreements
The legislative amendments reinforce the concessions that businesses can negotiate with the Minister when applying for a Company-specific Labour Agreement.
Matters and visa criteria specified under a Labour Agreement are considered on a case-by-case basis and it is essential that employers build a strong business case in support of their requests to the Minister.
This should include evidence of a labour market shortage for the skills you require and evidence that the requested visa requirements will not create unequal employment conditions for Australians in equivalent roles.
Engaging a Migration Agent that specialises in employer-sponsored visas, such as Interstaff, can provide valuable advice and support throughout the Labour Agreement process. For professional advice and assistance, we encourage you to contact our team of Registered Migration Agents.
You can also connect with us on LinkedIn to stay updated on Australian immigration news and developments.
Source:
Interstaff's Registered Migration
Agents
The Migration Institute of Australia
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
