A company specific labour agreement is developed directly with an employer. The terms and conditions of the agreement are considered on a case-by-case basis.
This type of agreement will be considered only where:
a genuine skills or labour shortage exists, for an occupation which is not already provided for in an industry agreement; and
a designated area migration agreement, industry agreement or project agreement is not already in place.
Requesting a company specific labour agreement
Employers requesting a company specific labour agreement must provide an evidence-based case to demonstrate that they have a genuine labour market need to utilise the labour agreement program. For a request to be considered, employers must:
make a compelling business case for the employment of:
o overseas workers in one or more occupations where there is evidence of a labour market shortage, or
o an overseas worker based on the exceptional or niche skills of the applicant; and
ensure the minimum requirements outlined below for a company specific labour agreement are met.
Must be an Australian registered business with good standing
To enter into a labour agreement in Australia, your business must:
- Prove lawful and active operation for at least the past 12 months and demonstrate financial viability. You must provide:
– Key business details.
– A statement from a certified or chartered accountant confirming your financial capability to support the overseas workers requested. - Trust structures: Only Trustees can enter such agreements, and trust details must be clear in the application.
- Ensure no adverse information: Your business must not have negative information questioning its suitability as a sponsor including:
– Legal contraventions or related investigation/disciplinary actions
– Insolvency or providing false/misleading information. - If there is adverse information, you must declare it and justify why it should be disregarded by the Department.
Must be seeking to fill skilled occupations that are not available under skilled visa programs
The labour agreement program is part of Australia’s skilled visa programs, targeting occupations at ANZSCO skill levels 1 to 4 that are not eligible under standard TSS, SESR, or ENS visa programs. Exceptional cases for ANZSCO skill level 5 may be considered in Category 3 regional areas. Employers must provide six-digit ANZSCO or relevant industry codes and detailed task descriptions for proposed overseas workers. If the requested occupations are eligible under standard visa programs, requests should include justification for seeking concessions. For lower than skill level 4 occupations in Category 1 and 2 areas, the Minister’s approval is required, contingent on a strong business case or national interest.
Salary and employment conditions
You must demonstrate compliance with the salary and employment condition requirements specified on the Department’s website. Businesses in Category 3 regional areas may request a salary concession if they can present a strong business case explaining why they cannot meet standard requirements. However, salary concessions are not available for businesses in Category 1 and 2 locations.
Labour market need
Labour agreements are not intended to achieve migration outcomes for individuals but to address genuine labour market shortages. Businesses must demonstrate that positions cannot be filled locally by providing evidence of recent, genuine recruitment efforts, such as job advertisements. Labour market testing must meet at least the requirements of TSS/SESR visa programs, though concessions are available for regional businesses in Categories 2 and 3. Supporting evidence, like participation in job expos, recent labour market research, or letters from state authorities, can strengthen the request. Large companies must provide location-specific details, and all businesses must declare any recent retrenchments or redundancies of Australian workers in their application.
Reliance on overseas workers
A company specific labour agreement is generally expected to be a temporary solution to addressing current skills shortage only.
Depending on the location of the requesting organisation, in any one year period, overseas workers should not comprise more than the following percentage of the total workforce; and reliance on overseas workers should decrease during the life of the LA.
English proficiency
Overseas skilled workers must generally meet the standard English language requirements for TSS, ENS, or SESR visas under a labour agreement. Concessions are available for businesses in Category 2 and 3 regional areas, provided a strong business case is presented, showing that lowering the English standard won’t create workplace safety risks, ensures community participation and skill transfer, and demonstrates plans for improving workers’ English proficiency. These concessions do not apply to industry registration or licensing requirements. For Category 1 businesses, lowering English standards requires Ministerial approval.
Skills, qualifications and experience
For a visa under a labour agreement, overseas skilled workers must generally have two years of relevant work experience for the TSS visa (three years for SESR or ENS visas), meet ANZSCO skill requirements, and fulfill any industry registration or licensing requirements. Skills assessments are mandatory where required under standard visa programs. Businesses in Category 2 and 3 regional areas may seek concessions to skill, qualification, and experience requirements by providing a strong business case, while Category 1 businesses need Ministerial approval for such concessions.
Consultation with industry stakeholders
Before requesting a company-specific labour agreement, you must consult relevant industry stakeholders, including industry bodies, unions, and community groups potentially impacted by the agreement. Provide stakeholders with details such as requested occupations, skilled overseas worker numbers, proposed locations, concessions sought, and proposed salaries. Additional information like worker qualifications, current Australian employees, worker welfare strategies, workforce profiles, and training plans can also be included. Stakeholders must have at least 10 working days to respond, with a follow-up period of 5 days if no response is received. You must provide stakeholders with necessary information to comment and address their concerns. The outcomes of consultations, including written requests and responses, must accompany your agreement request. Failure to consult or provide required documentation will result in your request being returned. Stakeholders may also send feedback directly to the Department.