A labour agreement is a formal agreement that happens between the Australian government and individual Australian employers or industry, which allows them to sponsor overseas workers for specific occupations. It is designed to address skill shortages in particular industries where the local talent is unable to fulfil that skill gap.
But there is not only an all-in-one labour agreement. There are multiple types available that come with specific employment needs. So, whether you are an employer looking to hire or an employee trying to understand your rights, knowing about these types is important.
5 Types of Labour Agreements
- Company-specific labour agreements: It is an agreement that happens between an Australian employer and the government, allowing sponsorship of overseas workers for skilled roles that are not covered by Designated Area Migration Agreements or Project Agreements.
- Designated Area Migration Agreements (DAMA): It allows employers in regional areas to sponsor skilled and semi-skilled overseas workers to meet local labour shortages.
- Global Talent Employer Sponsored (GTES) agreements: This involves a fast-track visa program that allows Australian employers to sponsor elite and highly skilled overseas workers in particular roles that local workers and standard visa pathways cannot fill.
- Industry Labour Agreements: This is designed for specific industries that have ongoing labour shortages and allows multiple employers to sponsor overseas skilled workers under fixed terms.
- Project Agreements: It is a customised agreement for resource or infrastructure projects that are in the construction phase and allows employers to sponsor skilled overseas workers under specific conditions that meet their specific project labour shortages.
Visas Available Under Labour Agreements
Labour agreements are typically valid for five years and allow visas to be granted under one or more of the following visa programmes:
- Skills in Demand (SID) visa (subclass 482)
- Employer Nomination Scheme visa (subclass 186)
- Skilled Employer Sponsored Regional (Provisional) visa (subclass 494)
How to Apply for a Labour Agreement
- Review Eligibility and Requirements: Employers first have to read the Labour Agreement Program Information Guide and ensure that they meet the minimum criteria.
- Submit Online Request: If the employer meets all the requirements, then one can submit a labour agreement request online via ImmiAccount, where the supporting documents like evidence, workforce plans, and salary details are needed.
- Assessment by the Department of Home Affairs: Now the submitted application is assessed by the Department of Home Affairs, and one has to provide additional information if needed.
- Agreement Approval and Signing: If the agreement is approved, a draft labour agreement is provided for employer review and signature. Once signed by all parties and returned, the agreement becomes effective for a certain period of time.
- Variation Requests: If changes are needed (such as increasing nomination ceilings or altering terms), employers can submit a variation request with updated workforce and recruitment evidence.
Final Thoughts
Labour agreements help Australian employers to fill the skill shortage by sponsoring overseas workers when regular visa options don’t fit. By knowing these labour agreement types, employers can easily apply for the right one based on their needs.
So, if your business is in Australia and you are thinking of hiring an overseas worker, consider the use of labour agreements, and if you need more guidance about it, contact Growmore Immigration now at +61 434202021 or info@growmore.one without wasting time.