Labour Agreements for Skilled Migration in Australia
Struggling to fill roles not on standard skills lists? A labour agreement visa helps Australian employers sponsor overseas workers legally, with expert guidance from CMI Legal.
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What Are Labour Agreements in Australia?
A labour agreement is a formal arrangement between an Australian employer and the Department of Home Affairs that allows businesses to sponsor overseas workers when standard visa programs don’t meet their needs. These agreements are negotiated individually and provide flexibility that standard employer-sponsored visa pathways cannot offer. Through a labour agreement, employers can access occupations not listed on standard skilled occupation lists, negotiate concessions on salary thresholds, English language requirements, and age limits, sponsor workers for roles addressing genuine skill shortages, and create pathways to permanent residence for sponsored employees. In our 14 years of helping businesses across Australia, labour agreements have become increasingly important for employers in sectors like aged care, hospitality, agriculture, and regional industries where local recruitment consistently falls short.
Types of Labour Agreements
Company-Specific Labour Agreements
Company-Specific Labour Agreements are negotiated directly between your business and the Australian Government. You must demonstrate sustained labour shortages in defined roles, genuine local recruitment efforts, and that hiring overseas workers serves the public interest. These agreements suit businesses with unique workforce needs that don’t fit existing industry or regional frameworks.
Industry Labour Agreements
Industry Labour Agreements address sector-wide shortages through arrangements between peak industry bodies and the Government. Current examples include agreements for aged care, meat processing, fishing, dairy, and hospitality sectors. These agreements offer streamlined access because the terms are pre-negotiated, making them typically faster than company-specific arrangements.
Designated Area Migration Agreements (DAMAs)
Designated Area Migration Agreements (DAMAs) are region-based frameworks negotiated between the Australian Government and regional authorities. There are currently 13 active DAMAs covering regions across Australia, including the Northern Territory DAMA with 325 occupations and 1,500 places annually, South Australian DAMAs extended until June 2026, the Western Australia DAMA and regional sub-DAMAs, and the Orana DAMA covering NSW Central West, Southern Inland, Murray, and Riverina regions. DAMAs typically offer concessions, including age limits up to 55 years, English scores as low as IELTS 4.5, and up to 10% reduction on salary thresholds.
Project Agreements
Project Agreements support major infrastructure and resource projects requiring large numbers of overseas workers for defined periods, typically used for mining, construction, and major development projects. For businesses seeking highly specialised or senior talent, Global Talent Employer Sponsored (GTES) Agreements allow sponsorship of workers earning above $162,000 with streamlined processing.
When Do Employers Need a Labour Agreement?
Not every employer needs a labour agreement. Standard visa programs like the Skills in Demand (subclass 482) visa work well when occupations appear on approved skills lists, and candidates meet standard requirements. However, a labour agreement becomes necessary in several situations. If your required occupation isn’t on any skills list, you’ll need a labour agreement to sponsor workers for that role. Similarly, when market rates in your industry or region fall below the standard $76,515 threshold (from 1 July 2025), a labour agreement can provide salary concessions. Employers also turn to labour agreements when skilled workers with relevant experience cannot meet standard English test scores, when experienced workers over 45 would otherwise be ineligible due to age limits, or when their sector faces documented, widespread skill gaps requiring a coordinated industry response.
Visa Pathways Under Labour Agreements
Skills in Demand Visa (Subclass 482)
The Skills in Demand Visa (Subclass 482) is the primary visa for labour agreement workers. Under a labour agreement stream, employers can access occupations and concessions not available through standard 482 processing. The current minimum salary threshold is $76,515, though DAMA concessions may allow lower thresholds.
Skilled Employer Sponsored Regional Visa
The Skilled Employer Sponsored Regional Visa (Subclass 494) is a provisional visa for regional areas that can be accessed through DAMA labour agreements, providing a five-year pathway to permanent residence through the subclass 191 visa, for eligible workers meeting regional employment requirements.
Employer Nomination Scheme Visa
The Employer Nomination Scheme Visa (Subclass 186) offers permanent residence, and many labour agreements include provisions for this pathway. Workers holding subclass 482 visas under labour agreements can typically apply for the 186 visa after two to three years, depending on specific agreement terms
Key Features and Possible Concessions
Labour agreements can include negotiated concessions to standard visa requirements. Key features may include:
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With 14+ years of experience assisting Australian businesses, CMI Legal helps employers secure labour agreements to sponsor overseas workers where standard visa options fall short. We provide clear advice and fixed-fee services to support workforce growth, compliance, and long-term business stability.
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Labour Agreement Application Process
Initial Eligibility
Assess eligibility, demonstrate labour shortages, provide evidence of recruitment efforts, advertise roles, analyse the labour market, and show financial viability with records.
Drafting the Labour Agreement
Prepare the application, including business registration, labour market testing evidence, proposed occupations, salaries, positions, and a DAMA endorsement if required, and lodge it via ImmiAccount.
Negotiation and Approval
The department reviews the request, negotiates terms, considers business compliance and financial standing, proposes concessions, and industry consultations; approval may take several months.
Nomination and Visa Applications
After approval, nominate positions, sponsor workers, ensure role compliance, salary meets agreement, and the candidate meets skills, qualifications, and English proficiency requirements.
Ongoing Compliance and Monitoring
Maintain employment records, notify the Department of changes, prioritise Australian recruitment, report annually on the workforce, and cooperate fully with compliance monitoring obligations.
Why Choose CMI Legal For Your Labour Agreement?
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FAQs About Immigration Law Services
Standard 482 and 494 visas require occupations to appear on approved skills lists, with candidates meeting fixed salary, English, and age requirements. Labour agreements allow employers to access occupations outside standard lists and negotiate concessions on visa requirements when genuine labour shortages exist.
You may qualify if you've genuinely attempted to recruit Australians without success, the occupation isn't available under standard visa programs, and you can demonstrate business viability and compliance history. We assess your specific situation during an initial consultation.
Department processing typically takes three to six months for straightforward applications. Complex company-specific agreements requiring extensive negotiation can take longer. DAMA endorsements from regional authorities add additional time before Department lodgement.
Costs include professional fees for application preparation and government charges for visa nominations and applications. We provide fixed-fee quotes covering our services, and government fees vary depending on visa subclass and agreement type. Contact us for a transparent quote based on your circumstances.
Not always. Concessions depend on the agreement type and specific terms negotiated. Some agreements provide only expanded occupation access without concessions, while others, particularly DAMAs, include multiple concessions. Your specific agreement terms determine available concessions.
Yes. Most labour agreements include pathways to permanent residence through the subclass 186 Employer Nomination Scheme visa. Workers typically become eligible after two to three years of employment under the agreement. Some regional agreements also provide pathways through the subclass 191 Permanent Residence (Skilled Regional) visa.
Yes, business size doesn't automatically disqualify you. However, you must demonstrate genuine labour shortages, financial viability, and capacity to meet sponsorship obligations. Smaller businesses often find DAMA or industry agreements more accessible than company-specific negotiations.
Obligations include ensuring workers receive agreed salary and conditions, maintaining employment records, notifying the Department of significant changes, not recovering visa costs from workers, and cooperating with compliance monitoring. Specific obligations vary by agreement terms.
Core documents include business registration certificates, financial statements, labour market testing evidence, job descriptions, and proposed employment terms. For DAMAs, you'll also need endorsement from your regional authority. We provide a detailed checklist during your consultation.
Yes. Labour agreements typically specify the number of positions you can fill annually. Larger businesses or those with significant shortages may negotiate higher caps. Each sponsored worker requires individual nomination and visa applications under the agreement terms.
You may be able to address concerns raised by the Department and reapply, or explore alternative pathways such as different agreement types or standard visa programs if eligible. We assess refusal reasons and advise on the best path forward.
Absolutely. While our office is Sydney-based, we assist employers across Australia with labour agreement applications. We regularly work with businesses in regional areas accessing DAMAs and industry agreements.
