Labour Agreements
Labour agreements are formal arrangements negotiated between the Commonwealth Government, represented by the Minister, and an Australian business. These agreements provide a pathway for sponsoring foreign workers under the Temporary Skill Shortage (subclass 482) (TSS) visa program, particularly for businesses and sectors not covered by the standard skilled migration program. Employers may also negotiate access to the permanent residency Employer Nomination Scheme (ENS) program through a labour agreement.
The negotiation process for labour agreements can take over six months and involves consultation with industry organisations and relevant unions. Typically, labour agreements are pursued in scenarios where:
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There is a genuine shortage of skilled workers in occupations not listed on the approved occupations for the TSS visa program.
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Employers seek concessions to general requirements for TSS or ENS visas, such as English language or maximum age criteria.
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A business recruits labour for supply to an unrelated business (on-hire arrangements).
Designated Area Migration Agreements (DAMA)
A DAMA is a geographically based migration agreement intended to help support economic performance in regional areas of Australia. DAMAs enable a region to supplement the Australian workforce and fill recognised skill shortages with overseas workers. They are negotiated agreements intended to provide unique solutions to the skill shortages and labour market conditions faced by the relevant region.
Under the terms of a DAMA, the designated area may be able to access a broader range of overseas workers than is available through the standard skilled visa programs by allowing variation to standard occupations and skills lists and/or negotiable concessions to visa requirements, e.g., age, English, and salary. Labour agreements made under a DAMA are in effect for five years.
A DAMA is an overarching “head” agreement for the region, negotiated between the Department and a state or territory and/or regional authority. DAMAs prescribe the occupations and the number of foreign workers that can be sponsored by employers. Under the head agreement DAMA, individualised labour agreements can be executed with particular employers in that region.
DAMAs use the TSS (subclass 482) and ENS (subclass 186) visa programs. Individuals cannot directly access a DAMA. They must be sponsored for an occupation specified in the head agreement by an employer operating within the designated area.
Application for a DAMA
The DAMAs prescribe the occupations and the number of foreign workers that can be sponsored by employers in a particular regional area.
There are currently 13 DAMAs in place
•Orana, NSW — Regional Development Australia — Orana, NSW;
•Goulburn Valley, Vic — Goulburn Valley DAMA;
•Great South Coast, Vic — Warrnambool City Council;
•Far North Queensland — Cairns Chamber of Commerce DAMA;
•Townsville, Qld — Townsville Enterprise Ltd;
•East Kimberley, WA — East Kimberley Chamber of Commerce and Industry;
•Pilbara, WA — Regional Development Australia – Pilbara WA;
•South West, WA — Shire of Dardanup;
•Western Australia — Department of Training and Workforce Development;
•The Goldfields, WA — City of Kalgoorlie Boulder;
•Adelaide City, SA — Skilled & Business Migration;
•South Australia Regional — Skilled & Business Migration; and
•Northern Territory — Northern Territory DAMA.
The requirements and obligations of a DAMA are underpinned by the same principles as those of the Labour Agreement program. DAMAs are considered on a case-by-case basis, taking into consideration the unique circumstances and labour market of the region.
Key Points for Employers
Employers must demonstrate a genuine skills shortage and prove that no suitably qualified or experienced Australians are readily available. They must also show that access to foreign workers is a reasonable solution to address the skills shortage as an exception to the standard requirements of the TSS and ENS visa programs. Moreover, employers must ensure that sponsored foreign workers are paid at or above the annual market salary rate, which should exceed the Temporary Skilled Migration Income Threshold (TSMIT) unless a salary exemption is requested under the labour agreement terms.
Several vital documents and steps are required to apply for a Designated Area Migration Agreement (DAMA). The application process involves the following components:
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Letter of Endorsement: A letter of endorsement from the relevant state or territory government, typically managed by a Registered Migration Agent or Solicitor.
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Designated Area Representative (DAR): A DAR endorsed by the state or territory will oversee the request, which is handled by a Registered Migration Agent or Solicitor.
Zeolla Solutions will assist you with the following legal document(s) and Migration Law Reports to obtain the letter of endorsement and Designated Area Representative (DAR):
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A Business Case will be provided addressing the business structure, the sponsoring company’s reasons to engage in the DAMA, and any additional concessions that are being requested (such as those related to English proficiency, skills, or salary);
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Labour Market Test (LMT) ;
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Support for Employers and Integration: An explanation of how the DAR will support employers and facilitate the integration of overseas workers into local communities;
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Migration Law Reports and Supporting Documentation, such as Genuineness of the position, which addresses the need for the position and relevance of the nominated position for the sponsoring company and the Australian economy under the DAMA scheme, please note that financial reports (profit/loss), an organisational chart, the sponsoring company’s details, and the nominee’s resume (updated) will be required. Further, a market salary rate report will be provided, and employers must ensure that sponsored foreign workers are paid at or above the annual market salary rate.
Company-specific labour agreements in Australia, including for the Pan-Pacific Region
A company-specific labour agreement in Australia, including for the Pan Pacific region, involves several key requirements and processes. These agreements are formal arrangements negotiated between the Commonwealth Government and an Australian business to sponsor foreign workers under the Temporary Skill Shortage (subclass 482) visa program. They are typically used when the standard TSS program does not meet the employer's needs, such as for lower-skilled positions or when specific concessions are required Labour agreements and other agreements.
The negotiation process for a labour agreement can take more than six months and includes consultation with industry organisations and relevant unions. Employers must demonstrate a genuine shortage of skilled workers in occupations not listed on the approved occupations for the TSS visa program or seek concessions to general visa requirements, such as English language proficiency or age limits Labour agreements and other agreements.
Once a labour agreement is finalised, the employer can lodge a nomination application, followed by the visa application by the nominee. The nomination criteria are set out in regulation 2.72 of the Migration Regulations 1994, and visa requirements are detailed in Schedule 2, particularly regulation 482.24 Labour agreements and other agreements. Employers must also show that they have made genuine efforts to recruit Australian citizens or permanent residents and consult with industry stakeholders during the agreement's development.
Labour agreements are generally in effect for three years and may include additional terms and conditions, providing a variation to standard migration requirements. They offer a pathway for employers to access occupations that have been removed from the Medium and Long-term Strategic Skills List (MLTSSL) or the Short-term Skilled Occupation List (STSOL) or are subject to caveats.