Does Your Company Need a Labour Agreement?

In an increasingly competitive labour market, Australian businesses across a wide range of industries are feeling the pressure of worker shortages. Whether you're expanding, struggling to fill specialised roles, or operating in a regional area with limited access to local talent, you may be wondering if there are any options that can solve your ongoing shortages. If the standard skilled visa programs aren’t offering you the flexibility your business needs, a Labour Agreement could be the alternative you need.

In this article, we’ll break down what a Labour Agreement involves, when it might be the right fit, and how it could benefit your business.

What is a Labour Agreement?

A Labour Agreement is a formal arrangement between an employer and the Australian Government that allows businesses to sponsor overseas workers under conditions that differ from the standard visa requirements.

These agreements are particularly useful when:

• The occupation you need isn’t on the current Skilled Occupation Lists
• You require concessions to visa requirements (e.g., lower English proficiency, adjusted salary levels, or different age limits)
• You’re operating in regional or specialised industries with ongoing labour shortages

A Labour Agreement usually lasts for five years and acts as a type of ongoing sponsorship agreement, streamlining the visa process for both employers and the skilled migrants they hire.

How to Know If Your Business Needs a Labour Agreement

Here are some signs your business might benefit from a Labour Agreement:

You can’t find enough suitable Australian workers

If your recruitment efforts have failed to attract qualified local applicants, especially in specialised or lower-population areas, a Labour Agreement can allow you to access a broader overseas talent pool.

You need to sponsor workers in occupations not on the Skilled Occupation List

Many fast-growing or emerging industries face this challenge. Labour Agreements can make it possible to sponsor workers in niche or unlisted roles if a strong business case is made.

Your candidates fall short of standard visa requirements

If you’ve found a great candidate who doesn’t meet one or more visa requirements—such as age, English language level, or work experience—a Labour Agreement may allow you to request targeted concessions.

You're in a regional area or specialised industry

If you're operating in one of Australia’s Designated Area Migration Agreement (DAMA) regions or within an industry that already has a template agreement in place (such as aged care, meat processing, or horticulture), you may already qualify for streamlined access to skilled migration support.

What Does the Labour Agreement Process Involve?

Applying for a Labour Agreement is not a simple formality—it’s a comprehensive process that involves:

• Making a strong business case for hiring overseas workers
• Demonstrating a history of hiring locally when possible
• Consulting with relevant industry stakeholders or unions (not required in all agreement types)
• Outlining the specific roles, skill levels, and concessions you need
• Following the relevant application process for different types of agreements

Once approved, the agreement sets out the terms under which you can sponsor overseas workers under the Skills in Demand (subclass 482) visa, Skilled Employer Sponsored Regional (Provisional) (subclass 494) visa, and Employer Nomination Scheme (subclass 186) visa, including how many positions you're allowed to fill each year.

Types of Labour Agreements: Which One Fits Your Business?

There are three main types of Labour Agreements. Here's how to know which might suit your business:

Company Specific Labour Agreements (CSLA)

Best for businesses with unique workforce needs not covered by existing frameworks.

• Customised to your situation
• Can include niche occupations and tailored concessions
• More complex to negotiate, but offers maximum flexibility

Example: A mining company is looking to sponsor drillers, which are not contained on the skilled occupation list, despite being in an ongoing shortage.

Industry Labour Agreements (ILA)

Ideal for businesses in industries with recognised skill shortages.

• Pre-negotiated templates
• Set occupations and concessions
• Streamlined application process

Industries with current ILAs:

• Aged Care
• Dairy
• Fishing
• Horticulture
• Premium Dining (Restaurant)
• Meat, Pork, On-hire, Advertising, and more

Example: A high-end restaurant wants to sponsor highly skilled waiters under the Restaurant Industry Labour Agreement.

Designated Area Migration Agreements (DAMA)

Perfect for regional businesses with persistent labour gaps.

• Region-specific, with tailored concessions
• Accessible to businesses operating within designated zones
• Includes a wider range of occupations than standard lists

Popular DAMA regions include:

• WA Agreement
• Far North Queensland
• Northern Territory
• Pilbara (WA)
• Goulburn Valley (VIC)
• Townsville (QLD)

Example: A dairy farm in regional Victoria needs skilled workers not available locally and uses the Goulburn Valley DAMA.

Why a Labour Agreement Could Be a Game Changer for Your Business

Labour Agreements can provide:

• Access to skilled workers beyond the standard visa limits
• Flexibility in visa criteria (skills, language, salary, etc.)
• A five-year sponsorship framework for consistent workforce planning
• Solutions tailored to your business’s size, location, and industry

However, they do require forward planning, a strong business case, and a strategic approach to immigration compliance.

How We Can Help

If you think your business could benefit from a Labour Agreement—or you're not sure where to start—we’re here to guide you.

Our experienced team can:

• Assess your eligibility for different Labour Agreement options
• Develop and prepare your business case
• Liaise with unions and industry bodies where required
• Support you through every step—from application to ongoing compliance

Whether you're in a booming metro industry or a remote regional town, we’ll help you unlock the workforce solutions that best fit your business goals.

Ready to Secure the Skilled Talent Your Business Needs?

Don’t let workforce shortages hold your business back. Whether you’re navigating complex visa rules or exploring new recruitment options, our team can help you unlock tailored migration solutions through a Labour Agreement.

Contact Australian Migration Lawyers today to find out if a Labour Agreement is right for you—and take the first step toward building a stronger, more resilient workforce.

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