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Labor Agreement -- Frequently Asked Questions

1. What is a Labour Agreement?

A Labour Agreement is a formal arrangement negotiated between the Commonwealth Government (represented by the Department of Immigration and Multicultural and Indigenous Affairs (DIMIA) and the Department of Employment and Workplace Relations (DEWR)) and an employer or an industry association. In certain cases, unions may also be party to a Labour Agreement.

Labour Agreements enable Australian employers to recruit a specified number of workers from overseas in response to identified or emerging labour market (or skill) shortages in the Australian labour market. Employees may come to Australia on either a temporary or a permanent basis.

Labour Agreements are designed to ensure that overseas recruitment does not prevent the longer term improvement of employment and training opportunities for Australians. Accordingly, employers or industry associations are required to make commitments to the employment, education, training and career opportunities of Australians as part of the agreement.

In general, Labour Agreements ensure that:

  • all relevant stakeholders are included in negotiations and, where possible, are signatories to any agreements,
  • all labour market sensitivities are resolved between the interested parties,
  • provision is made for the ongoing recruitment, training and career path of Australians, and

After the agreement has been negotiated, the process consists of two stages:

  • nomination, by the employer, of a position to be filled by an overseas worker, and
  • nominee's application for a visa.

2. Who is eligible to apply for a Labour Agreement?

Any lawfully operating Australian employer or industry association.

3. When are Labour Agreements appropriate?

Labour Agreements are appropriate when an employer or industry association:

  • has identified a group of occupations or specialisations requiring skills or experience not readily available within the Australian labour market, or
  • is under contract to complete a specific project which requires special expertise from overseas for a fixed period, or
  • has a requirement for skills or technology new to Australia, or
  • has an international staff exchange program which provides overseas career opportunities and work experience for appropriately skilled Australian personnel.

4. What are the benefits of a Labour Agreement?

An employer or industry association may negotiate the entry of a number of people to fill a group of positions across a wide range of (skilled) occupations without having to test the domestic labour market each time it wishes to recruit from overseas.

Visa applications for overseas workers made under a Labour Agreement receive priority processing.

5. How do I obtain a Labour Agreement?

A written submission in support of a request for a Labour Agreement should be sent to DIMIA and DEWR covering:

  • the employer's company and/or industry structure and background,
  • the number and nature of skilled persons to be recruited from overseas,
  • evidence of prior and ongoing efforts to recruit from the Australian labour market,
  • evidence of prior and ongoing training of Australians, and
  • the employer's history of compliance with workplace relations legislation

The provision of a comprehensive initial submission covering the above should expedite the negotiation and monitoring processes. Please note that Labour Agreements are usually negotiated within 6 to 12 weeks of receipt of a detailed submission.

If the Commonwealth Government decides to pursue a Labour Agreement with a company or industry association, that company or industry association may be required to provide further information on employment, education, training and industrial relations matters and will be invited to meet government representatives to discuss the proposal.

The lodgement of a submission in support of a Labour Agreement does not in itself guarantee that a Labour Agreement will be negotiated - employers need to be assessed as satisfying all of the criteria applicable to the visa subclasses proposed for inclusion in a Labour Agreement.

6. What are the nomination requirements for a Labour Agreement?

To nominate a person under a Labour Agreement the employer must:

  • be a party to a current Labour Agreement,

In addition:

  • the nomination must be in accordance with the terms of the relevant Labour Agreement,
  • the nomination must not exceed the agreed nomination ceiling for the relevant Labour Agreement,
  • the terms and conditions of employment must be in accordance with the relevant Labour Agreement.

7. What are the visa requirements for a Labour Agreement?

To apply for a permanent visa under a Labour Agreement you must demonstrate that you:

  • have been nominated by an employer who is a party to a current Labour Agreement,
  • have the qualifications, skills (including English language skills) and experience specified in the relevant Labour Agreement,
  • satisfy any mandatory licensing, registration or professional membership requirements under the relevant Labour Agreement
  • meet health and character requirements,
  • if applying in Australia, are the holder of a qualifying visa.

See:
Form 1066, Application for a long stay temporary business visa
Form 47ES, Application for employer sponsored migration to Australia
Business centres
Office and Contact Details Outside Australia

8. How do I get further information about negotiating a Labour Agreement?

Migration booklet 5, Employer Sponsored Migration, contains information on negotiating a Labour Agreement.

You can obtain migration booklet 5 free online or purchase it:

  • in Australia: by telephoning the general inquiry number 131 881, or
  • overseas: by contacting your nearest Australian diplomatic office.

Further information is available from departmental business centres in each State and Territory of Australia
See:
Booklet 5, Employer Sponsored Migration
Business Centres

Source: Australian Government

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