What is a Labour Agreement?
A Labour Agreement is a formal arrangement between an Australian employer and the Department of Home Affairs that allows the sponsorship of overseas workers where standard skilled visa programs do not adequately meet business needs.
It is a bespoke pathway.
Labour Agreements are typically used where:
- Occupations are not available on standard skilled occupation lists
- Concessions are required (for example, age, salary, English language or work experience)
- There is demonstrated and ongoing labour market shortage
- Industry-wide workforce issues require structural solutions
Unlike standard sponsorship, a Labour Agreement must be negotiated and approved before nominations and visa applications can proceed.
When is a Labour Agreement Appropriate?
- Labour Agreements are generally suitable for:
- Large or complex organisations with persistent skill shortages
- Regional employers facing structural workforce gaps
- Businesses in emerging or highly specialised industries
- Employers seeking concessions not available under standard visa programs
- Sectors operating under government-recognised industry shortages
They are not a shortcut to standard sponsorship. They require strong evidence and clear justification.
Types of Labour Agreements
There are several categories of Labour Agreements, depending on the nature of the workforce need.
Company-Specific Labour Agreements
Negotiated directly between a business and the Commonwealth.
Used where:
- Standard visa programs do not provide suitable occupations
- Concessions are commercially necessary
- The business can demonstrate extensive labour market testing
- There is a clear training and workforce strategy
These agreements are tailored to the organisation.
Industry Labour Agreements
Designed for sectors experiencing widespread and ongoing shortages.
Industries with existing Labour Agreements include areas such as:
- Aged care
- Dairy
- Meat processing
- On-hire
- Horticulture
Eligibility and concessions are pre-defined under the industry framework.
Designated Area Migration Agreements (DAMA)
A form of regional Labour Agreement negotiated between the Commonwealth and a State or Territory government.
DAMAs:
- Allow access to a broader range of occupations
- May provide age, salary or English concessions
- Are designed to support regional economic growth
Employers must first obtain endorsement from the relevant regional authority before applying.
Global Talent Employer Sponsored (GTES) Agreements
Used for highly specialised, niche roles not otherwise available through standard occupation lists.
These agreements are designed to support innovative and high-growth businesses requiring globally scarce expertise.
Key Features of Labour Agreements
- Must be negotiated and approved before visa nominations
- Usually valid for up to 5 years
- Include agreed ceilings for number of positions
- May include concessions to age, English, salary or work experience
- Require structured training commitments for Australian workers
Each agreement contains binding obligations.
Eligibility Requirements
To secure a Labour Agreement, an employer must typically demonstrate:
- Genuine and ongoing labour shortages
- Extensive labour market testing
- Strong financial standing
- A history of compliance with workplace and immigration laws
- A credible training strategy for Australian workers
The Department will scrutinise whether the business has made meaningful efforts to recruit locally.
Negotiation can involve multiple rounds of requests for further information.
Processing Time
Labour Agreement negotiations are not fast.
Timeframes vary depending on:
- Complexity of the proposal
- Strength of supporting evidence
- Whether concessions are sought
- Departmental workload
It is common for negotiations to take several months.
Businesses should plan workforce strategy accordingly.
Strategic Considerations
A Labour Agreement is a serious undertaking.
It requires:
- Clear workforce modelling
- Executive alignment
- Documented recruitment attempts
- Long-term planning
- Ongoing compliance capability
The Department expects Labour Agreements to supplement — not replace — local workforce development.
For sectors such as aged care, construction, defence-adjacent industries, engineering, and regional services, Labour Agreements can provide structural workforce stability when standard programs fall short.
However, poorly prepared applications are often refused.
Compliance Obligations
Once approved, employers must:
- Comply with all sponsorship obligations
- Meet agreed salary and employment conditions
- Honour training commitments
- Stay within approved occupation ceilings
- Maintain accurate reporting and monitoring records
Breaches can result in termination of the agreement and significant reputational damage.
Government Fees
There is no government application fee to negotiate a Labour Agreement.
However, visa nomination and visa application charges apply once the agreement is in place.
Professional preparation is typically the most significant investment due to the complexity of negotiation and evidence requirements.
Frequently Asked Questions
What is a Labour Agreement and when is one needed?
It’s a bespoke arrangement negotiated with the Department of Home Affairs, used when standard visa programs don’t fit: for example, when an occupation isn’t on the skilled occupation lists, or when concessions on age, salary, English, or experience are required.
What types of Labour Agreements are available?
Four main types: Company-Specific (negotiated directly with a single business), Industry Labour Agreements (for sectors like aged care, dairy, meat processing, on-hire, and horticulture), DAMAs (regional agreements with a state or territory), and Global Talent Employer Sponsored (GTES) agreements for niche, highly specialised roles.
How long does it take to negotiate a Labour Agreement?
Negotiations typically take several months, varying with the complexity of the proposal, the strength of the supporting evidence, whether concessions are sought, and departmental workload.
What does a business need to show to be eligible for a Labour Agreement?
Genuine and ongoing labour shortages, extensive labour market testing, strong financial standing, a track record of workplace and immigration compliance, and a credible plan for training Australian workers.
Are there government fees to negotiate a Labour Agreement?
No government fee applies to the negotiation itself, though standard visa nomination and application charges apply once the agreement is in place. The main cost is usually the professional work of preparing a strong negotiation submission.
How Roam Migration Law Can Assist
Roam Migration Law advises organisations on whether a Labour Agreement is strategically appropriate and commercially viable.
We assist with:
- Workforce modelling and eligibility assessment
- Determining whether company-specific, industry or DAMA pathways apply
- Preparing detailed negotiation submissions
- Drafting concession justifications
- Managing Departmental negotiations
- Integrating sponsorship compliance frameworks
- Advising Boards and executive teams on risk exposure
Our approach is commercially grounded and evidence-driven.
Labour Agreements are not administrative exercises — they are strategic workforce instruments.
Speak With Us
If your organisation faces ongoing skill shortages that standard visa programs cannot resolve, contact Roam Migration Law to assess whether a Labour Agreement is appropriate.
Workforce gaps do not resolve themselves. Strategic immigration planning is often the difference between sustained growth and operational constraint.