Industry Labour Agreements Explained: When Standard Employer Sponsorship Doesn’t Fit

• there is a demonstrated need that cannot be met in the Australian
  labour market, and
• standard temporary or permanent visa programs are not available.

A labour agreement should therefore not be treated as an easier
alternative to standard sponsorship.

The employer needs to show why the labour agreement framework is
appropriate for its workforce need.

• Advertising
• Aged Care
• Dairy
• Fishing
• Horticulture
• Meat
• Minister of Religion
• On-hire
• Pork
• Restaurant (Premium Dining)

Each agreement has its own employer requirements, occupations and visa
settings.

The fact that a business operates in one of these broad sectors does not
automatically mean it qualifies.

An Industry Labour Agreement is based on a particular industry.

A Designated Area Migration Agreement (DAMA) is based on a
designated geographic area and operates through a state, territory or
regional Designated Area Representative.

For example, an aged care provider may consider the Aged Care Industry
Labour Agreement where it meets that agreement's requirements.

A regional employer may instead consider a DAMA where the occupation and
business fall within the relevant regional agreement.

The appropriate framework depends on the business, occupation, location
and workforce need.

Home Affairs describes the terms of individual Industry Labour
Agreements as fixed or non-negotiable in the published industry
settings.

This creates consistency across employers using the same industry
framework.

An employer should therefore review the current agreement template
before making a request rather than assuming it can negotiate its own
set of concessions.

• subclass 482 Skills in Demand
• subclass 186 Employer Nomination Scheme
• subclass 494 Skilled Employer Sponsored Regional (Provisional)

Not every Industry Labour Agreement necessarily provides the same access
to all three pathways.

The relevant industry agreement determines which visa programs and
occupations are available.

Some Industry Labour Agreements provide access to the subclass 186
permanent visa after specified requirements or transition periods are
met.

For example, the Restaurant (Premium Dining) Industry Labour Agreement
currently provides subclass 186 access after:

• a two-year transition period for Chefs and Cooks
• a three-year transition period for Trade Waiters and Café or
  Restaurant Managers

The Dairy Industry Labour Agreement also provides access to subclass 186
after a three-year transition period.

These examples should not be applied to other agreements.

The permanent-residence pathway must be checked under the specific
Industry Labour Agreement.

The occupation settings can be narrower or different from the standard
skilled occupation framework.

For example, the Restaurant (Premium Dining) agreement currently covers:

• Chef
• Cook
• Café or Restaurant Manager
• Trade Waiter

The Dairy agreement covers Senior Dairy Cattle Farm Worker and Dairy
Cattle Farm Operator.

Other Industry Labour Agreements have their own occupation settings.

Employers should check the current agreement rather than relying on an
occupation that happens to be available in another industry or another
labour agreement.

• occupation access
• English
• age
• salary
• skills and qualifications
• work experience
• transition requirements for another visa

The Migration Regulations expressly allow labour agreements to deal with
these types of visa criteria.

But a labour agreement does not mean every requirement is waived.

Only the concessions actually contained in the relevant agreement apply.

Labour agreements are intended for workforce needs that cannot be met in
the Australian labour market.

The Migration Regulations require recent and genuine efforts to recruit
Australian citizens or permanent residents before the Commonwealth
enters into a work agreement, subject to specified exceptions.

Home Affairs also requires recruitment evidence as part of labour
agreement processes.

Employers should plan and document recruitment rather than treating a
labour agreement as a way to avoid testing the Australian labour market.

The request is then made through the Department's labour agreement
process in ImmiAccount.

Home Affairs asks for evidence including information about the business,
workforce need and recruitment activity.

If the labour agreement is approved and executed, the employer can then
use it to nominate workers within the agreement's occupations,
nomination ceiling and other terms.

The labour agreement itself does not grant a visa to a worker.

However, costs apply at later stages, including nomination and visa
applications.

Other business costs can also arise in preparing the request,
recruitment evidence, sponsorship process and employment arrangements.

The agreement sets the terms under which the employer can nominate
workers during that period.

Employers should pay attention to the agreement's nomination ceiling and
workforce planning rather than assuming worker numbers can be changed at
any time.

The Department now states that it will support only one variation in
each year of a labour agreement.

It also states that it will not accept a variation request during the
first six months after a new agreement is signed.

When seeking a variation, employers may need to provide updated
workforce planning, recent recruitment evidence and salary information.

This makes it important to think carefully about expected occupations
and worker numbers before entering into the agreement.

Home Affairs currently identifies these occupations:

• Aged or Disabled Carer
• Nursing Support Worker
• Personal Care Assistant

The agreement has its own employer and worker requirements.

Home Affairs also states that streamlined access is available to
employers that enter into and maintain a Memorandum of Understanding
with the relevant industry union or unions.

Employers in the disability sector cannot use the Aged Care Industry
Labour Agreement for these occupations and may need to consider whether
another pathway, such as a DAMA, is available.

Home Affairs currently requires the employer to meet specified
premium-dining characteristics, including requirements relating to
experienced staff, a wine list, annual revenue, non-franchised operation
and specialised staff.

The agreement can cover Chefs, Cooks, Café or Restaurant Managers and
Trade Waiters.

It is therefore not a general labour agreement for every café or
restaurant.

A hospitality business needs to satisfy the actual premium-dining
criteria before relying on this agreement.

• whether a current agreement exists for the industry
• whether the business satisfies the agreement's employer criteria
• whether the required occupation is covered
• whether standard employer sponsorship is available instead
• which visa subclasses the agreement supports
• what concessions actually apply
• the relevant skills, English, age and work-experience settings
• labour market testing and recruitment evidence
• salary requirements
• expected worker numbers and nomination ceilings
• whether a permanent-residence pathway exists
• whether the workforce plan is realistic for the agreement period

The existence of an Industry Labour Agreement does not mean every
employer in that sector can automatically use it.

The employer must first be able to access the relevant agreement and
nominate the worker under its terms.

If you are considering a position offered under a labour agreement,
check:

• which Industry Labour Agreement applies
• the occupation being nominated
• the visa subclass
• any concessions being relied on
• the skills and experience requirements
• the English requirement
• whether a permanent pathway exists and what conditions apply to it

Do not assume that the terms offered to another worker under a different
industry or agreement apply to your case.

Hans Immigration Services can review the business, occupation and
workforce requirements and help you understand whether an Industry
Labour Agreement, DAMA or standard employer-sponsored pathway may be
appropriate.

Book a consultation with Hans Immigration Services to discuss your
employer sponsorship options.