Labour Agreement in Australia: A Complete Guide for Employers and Skilled Workers

A Labour Agreement in Australia is a formal arrangement between an approved employer and the Australian Government that allows businesses to sponsor skilled overseas workers. Employers use a Labour Agreement in Australia when they cannot fill critical roles through the standard skilled migration programs, and there is a genuine labour shortage.

What Is a Labour Agreement in Australia?

A Labour Agreement in Australia is designed to help employers access overseas talent when:

• There is a proven shortage of local workers.

• The occupation is not available under standard visa programs (such as the Skilled Migration or Skills in Demand visa). These agreements allow employers to sponsor workers under the Temporary Skill Shortage (TSS) Visa (Subclass 482), Employer Nomination Scheme (Subclass 186), or Regional Sponsored Visa (Subclass 494).

Types of Labour Agreement in Australia

There are five main types of Labour Agreement in Australia:

1. Company-Specific Labour Agreements

This type of Labour Agreement in Australia is suitable when:

• The occupation is not on the standard skilled occupation list.

• There is no existing Industry Labour Agreement, DAMA, or Project Agreement that applies. To apply, employers must:

• Demonstrate a genuine skills shortage.

• Show that they have tried to recruit Australians first.

• Be an Australian business in good standing.

• Consult with relevant industry stakeholders.

2. Designated Area Migration Agreements (DAMA)

A DAMA Labour Agreement in Australia applies to regional areas experiencing significant labour shortages.

• It involves a two-tier structure:

  • Tier 1: A five-year agreement between the Federal Government and a regional authority.

  • Tier 2: Individual labour agreements between employers and the Government under the DAMA. There are currently 13 DAMAs in regions such as Adelaide City, Northern Territory, Far North Queensland, Pilbara, and Townsville.

3. Global Talent Employer Sponsored (GTES) Agreements

The GTES Labour Agreement in Australia allows employers to sponsor highly skilled workers for niche roles not covered by standard programs. Key features:

• Available to trusted employers.

• Two streams: Established Business and Startups.

• Higher income threshold for applicants.

• Offers flexibility in requirements and a pathway to permanent residency.

• Valid for up to four years with priority processing.

4. Industry Labour Agreements

An Industry Labour Agreement in Australia is available for sectors with consistent workforce shortages. Current industries include:

• Aged Care

• Dairy

• Fishing

• Horticulture

• Meat Industry

• Minister of Religion

• On-hire

• Pork Industry

• Restaurant (premium dining)

5. Project Agreements

A Project Labour Agreement in Australia applies to primary resource or infrastructure construction projects.

• Available to companies endorsed by the Department of Foreign Affairs and Trade.

• Designed to fill critical skill shortages during large-scale construction phases.

Labour Agreement in Australia: Book a Consultation

A Labour Agreement in Australia offers a practical solution for employers who cannot fill roles through standard migration programs and need skilled overseas workers. Whether through DAMA, GTES, Industry, Company-Specific, or Project Agreements, these pathways support both business needs and national workforce priorities.

Book a consultation with RACC today — we will guide you through the Labour Agreement in Australia, eligibility requirements, application process, and the correct migration pathway for your situation.

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