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    Labour agreements

Labour agreement

Labour agreements are formal arrangements negotiated between an employer and the Australian Government which lets an employer recruit an agreed number of skilled workers from outside Australia.

The agreement must:

  • identify the relevant skills shortage in the business and why these vacancies cannot be filled by Australian workers
  • specify the number of skilled workers needed from outside Australia
  • the age, skill and English language requirements that relate to the nominated occupations. Semi-skilled occupations can be considered for nominated positions if specified in the agreement.

You can use a template labour agreement if there is one for your industry or your worker’s occupation. If the template does not suit your needs it may be possible to negotiate an individual agreement.

A labour agreement comes into effect when it has been signed by all parties involved in the negotiations and is typically valid for three years.

Labour agreements enable approved businesses to sponsor overseas workers when there is a demonstrated need that cannot be met in the Australian labour market and standard temporary or permanent migration arrangements are not appropriate.

Labour agreements are developed between the Australian Government, represented by the Department, and employers. They are generally in effect for three years and might have additional terms and conditions, because labour agreements provide a variation to standard migration requirements.

Employers are required to have made recent, genuine efforts to recruit, employ or engage Australian citizens or Australian permanent residents. They are also required to consult or make genuine efforts to consult industry stakeholders, including relevant trade unions and peak industry bodies when developing their agreement. Labour agreements are the only migration pathway for semi-skilled labour.

There are four types of labour agreements:

  • company-specific
  • industry
  • designated area migration agreements (DAMA)
  • project agreements

Related:

Is my business eligible for a labour agreement?

Company-specific labour agreements

A company specific labour agreement is developed directly with an employer and will be considered only where a genuine skills or labour shortage for an occupation exists which is not already provided for in an industry labour agreement, or relevant project or designated area migration agreement. The terms and conditions of a company-specific agreement are considered on a case-by-case basis.

Industry Specific Labour Agreements

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Fast food industry labour agreement

This page provides information specific to requesting a fast food industry labour agreement and should be read in conjunction with the information guide,Information about requesting a labour agreement.

A fast food industry labour agreement is the only pathway which allows your business to recruit temporary skilled overseas workers in the occupations of retail manager or retail supervisor where you can demonstrate that there is no appropriately qualified Australian worker readily available.

The terms and conditions of the fast food industry labour agreement have already been established and are non-negotiable.

Key settings

Visa subclass Temporary Work (Skilled) visa (subclass 457)
English language Overseas skilled workers must meet one of the following English language proficiency requirements, consistent with the standard subclass 457 programme:

  • have achieved an overall test score of at least 5.0 in an International English Language Testing System (IELTS), with a score of at least 4.5 in each of the four test components
  • have achieved an Occupational English Test (OET) score of at least ‘B’ in each of the four components
  • have achieved a total score of at least 36 in a Test of English as a Foreign Language internet-based (TOEFL iBT), with a score of at least 3 for each of the test components of listening and reading, and a score of at least 12 for each of the test components of writing and speaking
  • have achieved an overall test score of at least 36 in a Pearson Test of English (PTE) Academic, with a score of at least 30 in each of the four test components
  • have achieved an overall test score of 154 in a Cambridge English: Advanced (CAE) test conducted on or after 1 January 2015, with a score of at least 147 in each of the four test components
  • be a current passport holder of a passport of any of the following countries:
    • Canada
    • New Zealand
    • The Republic of Ireland
    • The United Kingdom
    • The United States of America
  • have completed at least five cumulative years of full-time study in a secondary and/or higher education institution where instruction was conducted in English
  • the visa holder will be paid a salary that is more than the English language requirement exempt amount.
Occupation Employers can only nominate the following occupations.

Retail manager (Skill level 2 – ANZSCO 142111)

A retail manager is responsible for the overall management of the outlet. This would include, but not be limited to:

  • determining product mix, stock levels and service standards
  • controlling selection, training and supervision of staff
  • promoting and advertising the establishments goods and services
  • ensuring compliance with Work Health and Safety legislation and safety regulations
  • undertaking budgeting
  • maintaining records of stock levels and financial transactions.

Retail supervisor (Skill level 4 – ANZSCO 621511)

A retail supervisor is responsible for coordinating and supervising the activities of retail sales workers. This would include, but not be limited to:

  • ensuring that customers receive prompt service and quality goods and services
  • responding to customers inquiries and complaints
  • planning and preparing work schedules and assigning staff to specific duties
  • ensuring safety and security procedures are enforced
  • examining returned goods and deciding on appropriate action
  • taking inventory of goods for sale and ordering new stock.
Skills, qualifications and experience Retail managers (142111) must have one of the following:

  • a relevant qualification assessed by an Australian Registered Training Organisation (RTO) as equivalent to an AQF Diploma, or higher qualification, and at least three years relevant experience
  • at least five years relevant experience in a fast food environment.

Retail supervisors ) must have one of the following:

  • a relevant qualification assessed by a RTO as equivalent to an AQF Certificate IV or higher qualification, and at least three years relevant experience
  • at least four years relevant experience in a fast food environment.
Salary The base rate of pay must be equal to or greater than the Temporary Skilled Migration Income Threshold (TSMIT).

The terms and conditions of employment for overseas workers must be no less favourable than the terms and conditions of employment that would be provided to an Australian worker performing the same duties at the same location.

The minimum base rate of pay for a retail manager must beat least 10 per cent more than the salary paid to an overseas retail supervisor at the same location.

How to request a fast food industry labour agreement

You can request a fast food industry labour agreement once you have determined that you meet the requirements and have completed stakeholder consultation – refer to the Information about requesting a labour agreement for details.

Restaurant (fine dining) labour agreement

This page provides information specific to requesting a restaurant (fine dining) industry labour agreement and should be read in conjunction with the information guide Information about requesting a labour agreement.

A restaurant (fine dining) labour agreement allows Australian premium quality dining restaurants to recruit overseas cooks and chefs either temporarily or permanently, where employers can demonstrate that there is no appropriately qualified Australian worker readily available. The terms and conditions of the agreement have already been established and are non-negotiable.

Key settings

Employers Employers must meet the requirements for a labour agreement. For further information, please see Information about requesting a labour agreement.

Each employer must demonstrate that their restaurant is premium quality which offers à la carte menus only and has most of the following attributes:

  • silver service
  • employing a maître d’
  • uniformed, highly trained staff
  • industry recognition (eg recent awards)
  • visually appealing food at premium prices
  • dress code
  • quality websites
  • reservation requirements.
Visa subclass Temporary Work (Skilled) visa (subclass 457)

Employer Nomination Scheme visa (subclass 186) where there is an ongoing labour or skill need and overseas workers have held a subclass 457 visa under a labour agreement for a minimum period of two years in the occupation of chef or cook.
English language Overseas skilled workers must meet one of the following English language proficiency requirements:

Temporary Work (Skilled) visa (subclass 457):

  • an overall test score of at least 5.0 in an International English Language Testing System (IELTS), with a score of at least 4.5 in each of the four test components
  • an Occupational English Test (OET) score of at least ‘B’ in each of the four components
  • a total score of at least 36 in a Test of English as a Foreign Language internet-based (TOEFL iBT), with a score of at least 3 for each of the test components of listening and reading, and a score of at least 12 for each of the test components of writing and speaking
  • an overall test score of at least 36 in a Pearson Test of English (PTE) Academic, with a score of at least 30 in each of the four test components
  • an overall test score of 154 in a Cambridge English: Advanced (CAE) test conducted on or after 1 January 2015, with a score of at least 147 in each of the four test components
  • be a current passport holder of a passport of any of the following countries:
    • Canada
    • New Zealand
    • The Republic of Ireland
    • The United Kingdom
    • The United States of America, or
  • have completed at least five cumulative years of full-time study in a secondary and/or higher education institution where instruction was conducted in English
  • the visa holder will be paid a salary that is more than the English language requirement exempt amount.

Employer Nomination Scheme visa (subclass 186):

  • an overall test score of at least 5.0 in IELTS, with a score of at least 4.5 in each of the four test components, in the three years immediately prior to lodging the visa application
  • a minimum test score in each of the four test components: 4 for listening, 4 for reading, 14 for writing and 14 for speaking, in a Test of English as a Foreign Language internet-based test (TOEFL iBT) test that has been undertaken in the three years immediately prior to lodging the visa application
  • a test score of at least 36 in each of the four test components (speaking, reading, listening and writing) in a Pearson Test of English (PTE) Academic that has been undertaken in the three years immediately prior to lodging the visa application
  • a test score of at least 154 in each of the four test components (speaking, reading, listening and writing) in a Cambridge English: Advanced (CAE) test that was undertaken on or after 1 January 2015 and prior to lodging the visa application
  • be a citizen and current holder of a passport of any of the following countries:
    • Canada
    • New Zealand
    • The Republic of Ireland
    • The United Kingdom
    • The United States of America
  • have completed at least five years of full-time study in a secondary and/or higher education institution where instruction was conducted in English
  • the visa holder’s earnings will be at least equivalent to the current Australian Tax Office top individual income tax rate.
Occupation Employers can only nominate the following occupations:

  • chef (ANZSCO 351311)
  • cook (ANZSCO 351411)
Skills, qualifications and experience Chef (as per ANZSCO):

  • AQF associate degree, advanced diploma or diploma
  • At least three years of relevant experience can substitute for the formal qualifications listed above. In some instances relevant experience and/or on-the-job training can be required in addition to the formal qualification.
  • Subclass 457 skill assessment to apply for passport holders of Brazil, China (including Hong Kong and Macau), Fiji, India, Papua New Guinea, Philippines, South Africa, Thailand, Vietnam, Zimbabwe.

Cook (as per ANZSCO):

  • AQF certificate III including at least two years of on-the-job training, or AQF certificate IV.
  • At least three years of relevant experience can substitute for the formal qualifications listed above. In some instances relevant experience and/or on-the-job training can be required in addition to the formal qualification.
  • Subclass 457 skill assessment to apply for passport holders of Brazil, China (including Hong Kong and Macau), Fiji, India, Papua New Guinea, Philippines, South Africa, Thailand, Vietnam, Zimbabwe.
Salary The base rate of pay must be equal to or greater than 90 per cent of Temporary Skilled Migration Income Threshold (TSMIT).

The terms and conditions of employment for overseas workers must be no less favourable than the terms and conditions of employment that would be provided to an Australian worker performing the same duties at the same location.

The restaurant (fine dining) industry agreement will be extended to include the occupation of trade waiter, if this occupation and associated qualification is nationally endorsed. English language and salary requirements will apply. If nationally endorsed, permanent residence might be considered for the occupation of trade waiter where there is an ongoing labour or skill need and overseas workers have held a subclass 457 visa under a labour agreement for a minimum period of three and a half years as a trade waiter. More details on qualifications and experience will be provided following national endorsement.

How to request a restaurant (fine dining) labour agreement

You can request a restaurant (fine dining) industry labour agreement once you have determined that you meet the requirements and have completed stakeholder consultation – refer to the Information about requesting a labour agreement for details.

Fishing industry labour agreement

This page provides information specific to requesting a fishing industry labour agreement and should be read in conjunction with the information guide Information about requesting a labour agreement .

A fishing industry labour agreement is the only pathway which allows fishing industry employers to recruit overseas workers in the occupations of ‘deck hand’ and ‘fish hand’.

The fishing industry agreement allows for the temporary entry of overseas fish hand and deck hand workers to work in the Australian fishing industry. The terms and conditions of the fishing industry labour agreement have already been established and are non-negotiable.

Key settings

Visa subclass Temporary Work (Skilled) visa (subclass 457)
English language Overseas skilled workers must meet one of the following English language proficiency requirements:

  • achieved an average test score of at least 4.5 in an International English Language Testing System (IELTS)
  • achieved a total score of at least 32 in a Test of English as a Foreign Language internet-based (TOEFL iBT)
  • achieved an overall test score of at least 30 in a Pearson Test of English (PTE) Academic
  • achieved an overall test score of 147 in a Cambridge English: Advanced (CAE) test conducted on or after 1 January 2015
  • be a current passport holder of any of the following countries:
    • Canada
    • New Zealand
    • the Republic of Ireland
    • the United Kingdom
    • the United States of America.
  • have completed at least five cumulative years of full-time study in a secondary and/or higher education institution where instruction was conducted in English
  • the visa holder will be paid a salary that is more than the English language requirement exempt amount.

Note: Employers must implement each of the following initiatives:

  • providing overseas workers with initial access to an interpreter during induction training
  • installing signage and providing training booklets for the overseas workers in both English and their native language
  • providing overseas workers with flexible English language instruction options such as DVDs and phrasebooks.

If a labour agreement is approved, the employer must ensure that every overseas worker has sufficient English language proficiency to both:

  • enable them to take reasonable care of his or her own health and safety in the workplace and that of the people they work with
  • understand his or her workplace and employment conditions.
Occupation Employers can only nominate the following occupations:

  • deck hand (ANZSCO 899211)
  • fishing hand (ANZSCO 899212)

Note: Overseas workers nominated in either occupation can perform any of the tasks listed below. There is no registration or licensing requirement for overseas workers recruited under this agreement.

Deck and fishing hands maintain ships’ equipment and structures, and catch fish, crustacea and molluscs using nets, lines and traps in ocean and inland waters.

The tasks of deck and fishing hands are:

  • handling ropes and wires, and operating mooring equipment when berthing and unberthing
  • standing lookout watches at sea and adjusting the ship’s course as directed;
  • assisting with cargo operations using on-board equipment and stowing and securing cargo
  • patrolling ships to ensure safety of the vessel, cargo and passengers
  • performing routine maintenance and checks on deck equipment, cargo gear, rigging, and lifesaving and firefighting appliances
  • attaching gear and fastening towing cables to nets
  • casting and lowering nets, pots, lines and traps into water
  • preparing lines, attaching running gear and bait, and setting lines into position
  • hauling in fishing gear and removing fish and other marine life
  • sorting, cleaning, preserving, stowing and refrigerating catch.
Skills, qualifications and experience Overseas workers recruited to deck hand and/or fishing hand positions are not required to have an AQF qualification, but should have all of the following:

  • at least three years recent relevant experience (evidenced by a signed sea-time or log book)
  • hold safety and rescue certificates compliant with the International Convention on Standards, Training, Certification and Watchkeeping for Seafarers 1978, as amended
  • hold a first aid certificate which was awarded in the 12 months prior the nomination. Where the first aid certificate was awarded more than 12 months prior to the nomination, the employer must ensure that the overseas worker attains an Australian first aid certificate within one year of commencing work with the employer.
Salary All overseas workers are to be employed on a full-time basis.

The base rate of pay must be equal to or greater than the Temporary Skilled Migration Income Threshold (TSMIT).

All overseas workers are to be paid at least monthly.

The terms and conditions of employment for overseas workers must be no less favourable than the terms and conditions of employment that are, or would be, provided to an Australian worker performing the same duties at the same location. Where an Australian employee is undertaking the  same role, evidence of salary and guaranteed overtime arrangements must be provided with your request.

If an equivalent Australian is paid more than an overseas worker in any 12 month period the employer must ensure all of the following occurs:

  • the employer must pay the overseas worker an additional amount
  • this amount should equal the difference between the amount paid to the equivalent Australian and the amount paid to the overseas worker for the 12 month period
  • this amount is to be paid to the overseas workers in the month following the 12 month period.

Any payments deducted from the overseas workers salary can only be made with the written permission of the overseas worker.

Employers must demonstrate that any deductions are consistent with the Fair Work Act 2009 and/or local industrial instruments.

How to request a fishing industry labour agreement

You can request a fishing industry labour agreement once you have determined that you meet the requirements and have completed stakeholder consultation – refer to the Information about requesting a labour agreement for details.

Meat industry labour agreement

This page provides information specific to requesting a meat industry labour agreement and should be read in conjunction with the information guideInformation about requesting a labour agreement.

A meat industry labour agreement is the only pathway which allows an Australian meat processing employer to recruit overseas workers in the occupation of ‘skilled meat worker’.

The meat industry labour agreement allows for the temporary and permanent entry of overseas skilled meat workers to work in Australian meat processing establishments. The terms and conditions of the meat industry labour agreement have already been established and are non-negotiable.

Key settings

Visa subclasses Temporary Work (Skilled) Subclass 457 visa

Employer Nomination Scheme visa (subclass 186), where an overseas worker has held a subclass 457 visa as a primary visa holder, for a minimum period of three years and six months, in the occupation of ‘skilled meat worker’.
English language Overseas skilled workers must meet the following English language proficiency requirements:

Visa applicants must either:

  • have achieved a minimum average score of at least 5.0 on an International English Language Testing System (IELTS) test or an equivalent accepted test, with no minimum test score in any of the test components of speaking, reading, writing and listening

Additionally, you must provide evidence of at least two of the following measures that demonstrate Workplace Health and Safety in your workplace:

  • provision of access to an on-site interpreter that is able to fluently communicate in the overseas skilled meat workers’ native language
  • installation of multilingual signage (photos in JPEG format are acceptable)
  • provision of training booklets for the overseas skilled meat worker in both English and their native language
  • provision of flexible English language instruction options such as DVDs or phrasebooks.
Occupation Employers can only nominate the occupation of ‘skilled meat worker’.As the duties and tasks of a skilled meat worker reflect the duties and tasks referenced by a National Meat Industry Training Advisory Council (MINTRAC) Certificate III, a skilled meat worker cannot be employed in a labouring position or undertake labouring or unskilled duties other than  to the extent of circumstances prescribed in the agreement.

Tasks of a skilled meat worker, which include the duties of ANZSCO occupations Slaughterer and Meat Boner and Slicer, are:

  • stuns and kills livestock, and prepares carcasses for further processing by removing internal organs and hides
  • operating switching controls to direct and drop carcasses and meat cuts from supply rails to boning tables
  • cutting meat to separate meat, fat and tissue from around bones
  • washing, scraping and trimming foreign material and blood from meat
  • cutting sides and quarters of meat into standard meat cuts, such as rumps, flanks and shoulders, and removing internal fat, blood clots, bruises and other matter to prepare them for packing and marketing
  • operating restrainer and stunning equipment
  • severing jugular veins of stunned animals to drain blood and facilitate dressing
  • trimming and removing head meat and severing animal heads
  • slitting open, eviscerating and trimming animal carcasses
  • slaughter livestock according to procedures required by religious customs.

Note: There is currently no ANZSCO code for the occupation of ‘skilled meat worker’. For administration purposes only, employers should use code 070499 in lieu of an ANZSCO code when nominating this position.
Skills, qualifications and experience Temporary Work (Skilled) visa (subclass 457)To nominate a visa applicant for a subclass 457 visa, overseas workers must:

  • have been assessed and verified by a MINTRAC registered assessor as having a minimum skill level of an Australian Qualification Framework (AQF) Certificate III in meat processing, and
  • demonstrate a minimum of three years skilled work experience at a meat processing establishment acceptable to the signatories to the labour agreement, or
  • the primary visa holder has been working in Australia on a subclass 457 visa at an Australian meat processing establishment acceptable to the signatories to the labour agreement for at least nine months prior to being nominated by the employer.

Employer Nomination Scheme visa (subclass 186)

Overseas workers nominating for a subclass 186 permanent visa must demonstrate that they possess appropriate skills and qualifications, including but not limited to:

  • being assessed as a ‘skilled meat worker’ by a MINTRAC registered assessor, or other assessor approved by the government, as being appropriately skilled for the purposes of permanent entry
  • having worked in Australia on a subclass 457 visa in the position of ‘skilled meat worker’ for a minimum of three years, and six months, which can include any amount of time spent performing the duties of a ‘skilled meat worker’ while technically nominated as a slaughterer or boner and slicer on a subclass 457 visa in a period prior to a company signing a labour agreement
  • achieved a minimum average score of at least 5.0 on an IELTS test, or an equivalent accepted test
  • be under 50 years of age at the time of nomination and visa application lodgment.
Salary The salary must be equal to or greater than the Temporary Skilled Migration Income Threshold (TSMIT). Please see Table 1 below for payments that can, and cannot, be accepted for the purpose of meeting the salary requirements.

For the purpose of the meat industry labour agreement, the TSMIT is based on a 38 hour working week excluding penalties and overtime.

All penalties and additional hours worked in excess of 38 hours over the week must be remunerated in accordance with the provisions of the relevant industrial instrument applicable to Australian and overseas workers at the meat processing establishment.

The terms and conditions of employment for overseas workers must also be no less favourable than the terms and conditions of employment that are, or would be, provided to an Australian worker performing the same duties at the same location. Where an Australian employee is undertaking the same role, evidence of salary arrangements must be provided with your request.
Training Employers must meet one of the following training benchmarks for each year of the labour agreement:

  • the equivalent of at least 1.6 per cent of total gross wages (all employees – Australians and overseas workers) must be paid by the employer on structured training for Australians
  • at least $1000 must be spent on structured training for each Australian employee of the employer
  • the employer must ensure that the employment of Australian apprentices and/or trainees is maintained at a level of no less than 15 per cent of the total number of employees engaged in meat processing duties.
Sponsorship obligations Subclass 457 sponsorship obligations apply.In addition to the subclass 457 sponsorship obligations, additional obligations under the meat industry labour agreement reflect the unique nature of this labour agreement. In particular, variations have been made to ensure that overseas workers continue to be paid the minimum salary, regardless of whether the worker is not employed for a period of time due to a stand-down, insufficient work or any other reason.

It is your responsibility to read these carefully before signing your labour agreement.

How to request a meat industry labour agreement

You can request a meat industry labour agreement once you have determined that you meet the requirements and have completed stakeholder consultation – refer to the Information about requesting a labour agreement for details.

Transition to permanent residence

Overseas workers can transition to a permanent visa only after they have held a subclass 457 visa, as a primary visa holder, in the occupation of ‘skilled meat worker’ for a minimum period of three years and six months in the following circumstances:

  • Nominations can only be made by a meat industry employer that is a signatory to a meat industry labour agreement.
  • Employers can only nominate overseas workers in the occupation of ‘skilled meat worker’.
  • Overseas workers must have the experience, qualifications and English language proficiency required under a meat industry labour agreement.
  • Overseas workers must be under 50 years of age at the time of nomination and visa application lodgement.

Employers must continue to demonstrate ongoing labour market need, rather than simply transitioning temporary visa holders to permanent residence. Employers will also be expected to have met all sponsorship obligations, including training and recruitment obligations, throughout their current and previous labour agreement.

Employers should avoid ‘promising’ a pathway to permanent residence when recruiting overseas workers. The Department might review the number of nominations annually.

The table below shows the payments that can, and cannot, be accepted for the purpose of meeting TSMIT or the Annual Salary.

Payments that can be accepted Payments that cannot be accepted
Payments for work performed during employees’ normally scheduled or rostered hours of work, including ordinary hourly rates and/or piecework earnings generated from any payment by results scheme. This includes shift allowances that are guaranteed in a work contract. Payments relating to overtime, work performed during rostered days off, call outs, call backs and any other payments for extraneous work outside or beyond the employees’ normally scheduled or rostered hours of work.
Amounts that are voluntarily salary sacrificed by the employee in accordance with the employer’s approved payroll deduction plan. Allowances of a reimbursement nature, such as meal allowances.
Payments for any leave, such as annual leave loading and cashed out leave entitlements. Statutory employer superannuation contributions.
Payments made on termination of employment, such as payment for unused leave, payment in lieu of notice and/or severance pay. Post tax payroll deductions.
Payments for public holidays, whether the employee worked on the public holiday or not. Worker’s compensation benefits paid as reimbursement for expenditure, such as medical or pharmaceutical costs.
‘Top up’ payments made as stipulated in the meat industry labour agreement. Shift allowances, where not guaranteed in the work contract.
Worker’s compensation benefits paid as compensation for loss of ordinary earnings. N/A
Employer superannuation contributions above the statutory level. N/A

On-hire industry labour agreement

This page provides information specific to requesting an on-hire industry labour agreement and should be read in conjunction with the information guide Information about requesting a labour agreement (116KB PDF).

An on-hire labour agreement allows your on-hire business to recruit temporary skilled overseas workers to occupations on the Consolidated Sponsored Occupation List (CSOL) where you can demonstrate that there is no appropriately qualified Australian worker readily available. A business which enters into an on-hire labour agreement becomes an approved sponsor and is able to nominate and recruit overseas workers in the approved occupations.

As an approved sponsor with an on-hire business your overseas workers can be assigned to work at a third party. However, you must remain the direct employer of all overseas workers sponsored under an on-hire industry labour agreement, and overseas workers must receive their salary on a regular basis in line with how equivalent Australians are paid, regardless of an assignment. Strict penalties apply if on-hire employers are found to be in breach of the conditions of the on-hire labour agreement.

The on-hire labour agreement is an industry agreement, meaning the terms and conditions of the agreement have already been established and are non-negotiable.

Key settings

Visa subclass Temporary Work (Skilled) visa (subclass 457)
English language Overseas skilled workers must meet one of the following English language proficiency requirements, consistent with the standard subclass 457 programme:

  • have achieved an overall test score of at least 5.0 in an International English Language Testing System (IELTS), with a score of at least 4.5 in each of the four test components
  • have achieved an Occupational English Test (OET) score of at least ‘B’ in each of the four components
  • have achieved a total score of at least 36 in a Test of English as a Foreign Language internet-based (TOEFL iBT), with a score of at least 3 for each of the test components of listening and reading, and a score of at least 12 for each of the test components of writing and speaking
  • have achieved an overall test score of at least 36 in a Pearson Test of English (PTE) Academic, with a score of at least 30 in each of the four test components
  • have achieved an overall test score of 154 in a Cambridge English: Advanced (CAE) test conducted on or after 1 January 2015, with a score of at least 147 in each of the four test components
  • be a current passport holder of a passport of any of the following countries:
    • Canada
    • New Zealand
    • The Republic of Ireland
    • The United Kingdom
    • The United States of America
  • have completed at least five cumulative years of full-time study in a secondary and/or higher education institution where instruction was conducted in English
  • the visa holder will be paid a salary that is more than English language requirement exempt amount.
Occupation On-hire employers can only nominate occupations that are listed on the Consolidated Sponsored Occupation List. Duties of nominated occupation(s) must be consistent with the relevant occupation code under ANZSCO.
Skills, qualifications and experience Overseas workers must have minimum skills, qualifications and experience for the nominated occupation(s), as described in ANZSCO.

Overseas workers are expected to be able to meet all industry registration requirements to ensure they have skills to Australian standards. Subclass 482 TSS visa skills assessment requirements also apply.
Salary Overseas workers sponsored under the on-hire labour agreement must be employed in on going, full time positions and be paid their full-time salary each salary period throughout their employment by the on hire company. Salaries cannot be paid by a third party while the overseas worker is on assignment.

Ordinary hours of work are determined under the relevant state/territory or federal award. Where there is no award, full time ordinary hours are considered to be 38 hours per week.

‘Benching’, putting workers ‘on hold’ with no salary or benefits, or compelling overseas workers to use their annual leave, while they await their next assignment, is not allowed under the on-hire labour agreement. Similarly, leave without pay associated with a gap in assignments is not permitted without prior agreement of the Department.

The base rate of pay must be equal to or greater than the Temporary Skilled Migration Income Threshold (TSMIT).

The salary paid to any worker under an on-hire labour agreement, and the terms and conditions of employment, must also be no less favourable than the terms and conditions of employment that are, or would be, provided to an Australian worker performing the same duties at the same location.

Requests for concessions to the salary requirement will not be considered.
Training Under an on-hire labour agreement, at least one of the three following benchmarks must be met:

  • If your company has a workforce that is predominantly ANZSCO skill level one or two, the Commonwealth must be satisfied that five per cent of your skilled workforce are recent Australian graduates and that these graduates are provided with structured training linked to professional development and/or licensing requirements. The definition of a ‘recent Australian graduate’ is a person who has completed a higher education (university) course in the last 12 months and has less than 12 months post-qualification employment experience.
  • The Commonwealth is satisfied that 15 per cent of the company’s workforce are Australian apprentices (or trainees) or recent Australian apprentices (or trainees) (with less than 12 months post-qualification employment experience) including those under contract to group training organisations but whose placements are coordinated by the business.
  • The company has training expenditure equating to at least two per cent of total gross wages on training Australians.

Further details are available below.
Sponsorship obligations Subclass 457 and 482 sponsorship obligations apply. In addition to the subclass 457 sponsorship obligations, additional obligations under the on-hire labour agreement reflect the unique nature of this labour agreement. In particular, variations have been made to ensure that overseas workers continue to be paid their agreed salary, regardless of an assignment. It is your responsibility to read these carefully before signing your labour agreement.

Training commitment

Employers seeking to access an on-hire labour agreement must demonstrate they have a satisfactory record of, and an ongoing commitment to, the training of Australians. This requirement supports the Australian Government’s position that temporary migration arrangements should complement, not substitute for investment in training initiatives for Australians.

On-hire employers are able to change their selected benchmark throughout the life of the on-hire labour agreement but the Department recommends that the financial implications of meeting all three benchmarks be considered separately and carefully before requesting a labour agreement.

It is not unusual for on-hire employers to discover (usually towards the end of their first year) that they need to make significant additional expenditure to meet the requirements of their selected training benchmark. In such a case, employers should consider whether the number of overseas workers requested under the on-hire labour agreement justifies that additional expenditure.

Clearly state which of the following benchmarks you are intending to meet and provide evidence of a commitment to the training of Australians. The table below provides examples of evidence that can be included towards each training benchmark:

Training benchmark A requirements
(Graduates)
Training benchmark B requirements
(Apprentices and Trainees)
Training benchmark C examples
(2% of gross wages expenditure)
structured training programme which works towards unconditional licensing and/or registration in the occupational field

certificate of registration with the relevant board.

 participation in Australian Apprenticeships Incentives Programme

group training organisation placement(s) in your workplace

apprenticeship support and approval from the relevant state and/or territory training authority in which your business operates

profit and loss statement clearly indicating salaries of apprentices currently employed in your business. This statement should be supported by an organisational structure chart.

 payments made to an industry training fund

payments for a formal course of study for the business’ Australian employees

payments to external providers to deliver training to Australian employees

funding a scholarship in a formal course of study approved under the Australian Qualifications Framework for the business’ employees who are Australian citizens and Australian permanent residents or, for TAFE or university students, as part of the organisational training strategy

gross wages paid to graduates, apprentices or trainees—provided certain conditions are being met

wages (or a proportion of the wages) of an employee who trains the business’ employees who are Australian citizens and Australian permanent residents as a key part of their job.

How to request an on-hire industry labour agreement

You can request an on-hire industry labour agreement once you have determined that you meet the requirements and have completed stakeholder consultation – refer to the Information about requesting a labour agreement (116KB PDF) for details.

Dairy industry labour agreement

This page provides information specific to requesting a dairy industry labour agreement and should be read in conjunction with the information guide,Information about requesting a labour agreement.

A dairy industry labour agreement is the only pathway which allows dairy industry employers to recruit overseas workers in the occupation of ‘senior dairy cattle farm worker’.

The dairy industry agreement allows for the temporary entry of overseas senior dairy cattle farm workers to work in the Australian dairy industry. The terms and conditions of the dairy industry labour agreement have already been established and are non-negotiable.

Key settings

Visa subclass Temporary Work (Skilled) visa (subclass 457)
English language Overseas skilled workers must meet one of the following English language proficiency requirements, consistent with the standard subclass 457 programme:

  • have achieved an overall test score of at least 5.0 in an International English Language Testing System (IELTS), with a score of at least 4.5 in each of the four test components
  • have achieved an Occupational English Test (OET) score of at least ‘B’ in each of the four components
  • have achieved a total score of at least 36 in a Test of English as a Foreign Language internet-based (TOEFL iBT), with a score of at least 3 for each of the test components of listening and reading, and a score of at least 12 for each of the test components of writing and speaking
  • have achieved an overall test score of at least 36 in a Pearson Test of English (PTE) Academic, with a score of at least 30 in each of the four test components
  • have achieved an overall test score of 154 in a Cambridge English: Advanced (CAE) test conducted on or after 1 January 2015, with a score of at least 147 in each of the four test components
  • be a current passport holder of a passport of any of the following countries:
    • Canada
    • New Zealand
    • The Republic of Ireland
    • The United Kingdom
    • The United States of America
  • have completed at least five cumulative years of full-time study in a secondary and/or higher education institution where instruction was conducted in English
  • the visa holder will be paid a salary that is more than the English language requirement exempt amount.
Occupation Employers can only nominate the occupation of ‘senior dairy cattle farm worker’. Refer below for occupation details.
Skills, qualifications and experience Overseas workers must have minimum skills, qualifications and experience for the nominated occupation, as follows:

  • at least an AQF Certificate III, or equivalent qualifications as assessed by a registered training organisation, and demonstrate at least three years of recent and relevant work experience, or
  • have at least five years recent and relevant work experience.
Salary The base rate of pay must be equal to or greater than the Temporary Skilled Migration Income Threshold (TSMIT).

For the purpose of calculating TSMIT, the base rate of pay can be varied to include up to a maximum of seven hoursguaranteed overtime (to a maximum 45 hour week). The approved sponsor must provide evidence at the time of nomination that the hours are guaranteed.

The terms and conditions of employment for overseas workers must be no less favourable than the terms and conditions of employment that are, or would be, provided to an Australian worker performing the same duties at the same location. Where an Australian employee is undertaking the same role, evidence of salary and guaranteed overtime arrangements must be provided with your request.

All additional hours worked in excess of 45 hours over the week must be remunerated in accordance with the provisions of the relevant industrial instrument applicable to Australian and overseas workers in the dairy industry.

How to request a dairy industry labour agreement

You can request a dairy industry labour agreement once you have determined that you meet the requirements and have completed stakeholder consultation – refer to the Information about requesting a labour agreement for details.

Pork industry labour agreement

This page provides information specific to requesting a pork industry labour agreement and should be read in conjunction with the information guide, Information about requesting a labour agreement.

A pork industry labour agreement is the only pathway which allows pork industry employers to recruit overseas workers in the occupation of ‘senior stockperson (piggery)’.

The pork industry labour agreement allows for the temporary and permanent entry of overseas senior stockpersons to work in the Australian pork industry. The terms and conditions of the pork industry labour agreement have already been established and are non-negotiable.

Key settings

Visa subclass Temporary Work (Skilled) visa (subclass 457)

Employer Nomination Scheme visa (subclass 186), where an overseas worker has held a subclass 457 visa as a primary visa holder, for a minimum period of four years, in the occupation of senior stockperson (piggery).
English language Temporary Work (Skilled) visa (subclass 457)Overseas skilled workers must meet one of the following English language proficiency requirements:

  • achieved an overall test score of at least 5.0 in an International English Language Testing System (IELTS), with a score of at least 4.5 in each of the four test components
  • achieved an Occupational English Test (OET) score of at least ‘B’ in each of the four components
  • achieved a total score of at least 36 in a Test of English as a Foreign Language internet-based (TOEFL iBT), with a score of at least 3 for each of the test components of listening and reading, and a score of at least 12 for each of the test components of writing and speaking
  • achieved an overall test score of at least 36 in a Pearson Test of English (PTE) Academic, with a score of at least 30 in each of the four test components
  • achieved an overall test score of 154 in a Cambridge English: Advanced (CAE) test conducted on or after 1 January 2015, with a score of at least 147 in each of the four test components
  • a current passport holder of a passport of any of the following countries:
    • Canada
    • New Zealand
    • The Republic of Ireland
    • The United Kingdom
    • The United States of America
  • completed at least five cumulative years of full-time study in a secondary and/or higher education institution where instruction was conducted in English
  • the visa holder will be paid a salary that is more than the English language requirement exempt amount.

Employer Nomination Scheme visa (subclass 186):

Overseas skilled workers must meet one of the following English language proficiency requirements:

  • a test score of at least 5.0 in IELTS, in the three years immediately prior to lodging the visa application
  • a minimum test score in each of the four test components: 4 for listening, 4 for reading, 14 for writing and 14 for speaking, in a Test of English as a Foreign Language internet-based test (TOEFL iBT) test that has been undertaken in the three years immediately prior to lodging the visa application
  • a test score of at least 36 in each of the four test components (speaking, reading, listening and writing) in a Pearson Test of English (PTE) Academic that has been undertaken in the three years immediately prior to lodging the visa application
  • a test score of at least 154 in each of the four test components (speaking, reading, listening and writing) in a Cambridge English: Advanced (CAE) test that was undertaken on or after 1 January 2015 and prior to lodging the visa application
  • have completed at least five years of full-time study in a secondary and/or higher education institution where instruction was conducted in English
  • be a current passport holder of a passport of any of the following countries:
    • Canada
    • New Zealand
    • The Republic of Ireland
    • The United Kingdom
    • The United States of America
  • the visa holder’s earnings will be at least equivalent to the current Australian Tax Office top individual income tax rate.
Occupation Employers can only nominate the occupation: of ‘senior stockperson (piggery)’.

Senior stockperson (piggery) tasks:

  • supervise the site and facilities in terms of the required human resources, physical resources, safety requirements, consumables, documentation and measurement devices
  • provide overall maintenance and compliance of the Company Quality Assurance programme for the site ensuring that all relevant documentation is kept current
  • supervise data collection and recording so information is accurate to aid stock and inventory control
  • undertake specific tasks assigned by management to ensure that environmental, quality and safety goals are met
  • implement preventable maintenance programmes to reduce planned and unplanned down time
  • supervise trial sheds, collect and record data in accordance with trial protocols
  • selection of breeding stock and/or pigs for sale
  • supervision and participation of daily inspection of livestock, such that the animals are appropriately fed, watered, environmental parameters are fulfilled. The senior stockperson (piggery) in this case would work with and supervise a less experienced stockperson
  • supervision and participation of daily inspection of livestock, ensuring compromised animals are individually assessed, identified, treated and record in accordance with the Company Herd Health Plan and the industry’s Model Code of Practice
  • euthanise sick or injured stock in a humane manner and in accordance with the Model Code of Practice for Animal Welfare – Pigs 3rd edition
  • conduct post mortem examinations of deceased stock and report findings
  • collect boar semen at an artificial insemination laboratory
  • undertake processing duties within the artificial insemination laboratory
  • supervision and participation in the mating of animals via individually supervised mating or through Artificial Insemination
  • supervision of the birthing process, including the ability to physically conduct unsupervised internal assessments of females during parturition to minimise this incidence of still births
  • participate in company/industry training sessions and workshops as required
  • perform any other duty as required by the Unit Manager.

Note:  There is currently no ANZSCO code for the occupation of ‘senior stockperson (piggery)’. For administration purposes only, employers should use code 070499 in lieu of an ANZSCO code when nominating this position.
Skills, qualifications and experience Overseas workers must have minimum skills, qualifications and experience for the nominated occupation, as follows:

  • at least an AQF Certificate III in Agriculture (Pig Production), or equivalent qualifications as assessed by a registered training organisation; and demonstrate at least three years of recent and relevant work experience in a medium to large size commercial piggery, or
  • have at least five years’ recent and relevant work experience.
Salary The base rate of pay must be equal to or greater than the Temporary Skilled Migration Income Threshold (TSMIT).

For the purpose of calculating TSMIT, the base rate of pay can be varied to include up to a maximum of six hoursguaranteed overtime (to a maximum 44 hour week). The approved sponsor must provide evidence at the time of nomination that the hours are guaranteed.

The terms and conditions of employment for overseas workers must be no less favourable than the terms and conditions of employment that are, or would be, provided to an Australian worker performing the same duties at the same location. Where an Australian employee is undertaking the same role, evidence of salary and guaranteed overtime arrangements must be provided with your request.

All additional hours worked in excess of 44 hours over the week must be remunerated in accordance with the provisions of the relevant industrial instrument applicable to Australian and overseas workers in the pork industry.

How to request a pork industry labour agreement

You can request a pork industry labour agreement once you have determined that you meet the requirements and have completed stakeholder consultation – refer to the Information about requesting a labour agreement for details.

Transition to permanent residence

Overseas workers can transition to a permanent visa only after they have held a subclass 457 visa, as a primary visa holder, in the occupation of ‘senior stockperson (piggery)’ for a minimum period of four years in each of the following circumstances:

  • Nominations can only be made by a pork industry employer that is a signatory to a pork industry labour agreement.
  • Employers can only nominate overseas workers in the occupation of ‘senior stockperson (piggery)’.
  • Overseas workers must have the experience, qualifications and English language proficiency required under a pork industry labour agreement.
  • Overseas workers must be under 50 years of age at the time of nomination and visa application lodgement.

Employers will be required to continue to demonstrate ongoing labour market need, rather than simply transitioning temporary visa holders to permanent residence. Employers will also be expected to have met all sponsorship obligations, including training and recruitment obligations, throughout their current and previous labour agreement.

As such, employers should avoid ‘promising’ a pathway to permanent residence when recruiting overseas workers. The Department might review the number of nominations annually.

Snow sport industry labour agreement

This page provides information specific to requesting a snow sport industry labour agreement and should be read in conjunction with the information guideInformation about requesting a labour agreement.

A snow sport industry labour agreement is the only pathway which allows snow sport industry employers to recruit overseas workers in the occupations of ‘ski/snowboard instructor’, ‘ski patroller (medic)’, ‘ski technician’, ‘snow groomer’ and ‘lift operator’.

The snow sport industry agreement allows for the temporary entry of overseas workers to work in the Australian snow sport industry. The terms and conditions of the snow sport industry labour agreement have already been established and are non-negotiable.

Key settings

Visa subclass Temporary Work (Skilled) visa (subclass 457)
Period of visa Visas granted under a snow sport industry labour agreement are restricted to a maximum length of six months, corresponding to the nominated period of employment.
English language A concession to the standard visa (subclass 457) English language proficiency requirements applies.

The employer must ensure the overseas worker has sufficient English language proficiency to enable them to:

  • take reasonable care of his or her own health and safety in the workplace
  • take reasonable care of the health and safety of persons who might be affected by the acts or omissions of the overseas worker in the workplace
  • understand his or her workplace and employment conditions.

Additionally, the employer must provide, in the native language of the overseas worker, information, instruction and training that might be necessary to ensure the workplace health and safety of:

  • the overseas worker in the workplace
  • people who might be affected by the acts or omissions of the applicant or proposed applicant in the workplace.
Occupation Employers can only nominate the following occupations:

  • ski/snowboard instructor (ANZSCO 452314)
  • ski patroller (medic) (ANZSCO 451899)
  • ski technician (ANZSCO 149999)
  • snow groomer (ANZSCO 721999)
  • lift operator (ANZSCO 341113)
Skills, qualifications and experience Overseas workers recruited to an occupation available under the snow sport industry labour agreement should have the relevant skills, qualifications and experience, as follows.

Ski/snowboard instructor must have:

  • an Australian Professional Snowsport Instructors (APSI) level 1 or higher level qualification or an equivalent overseas qualifications acceptable to the employer and provided for under the Alpine Resort Award 2010
  • a minimum of two seasons experience in the occupation.

Ski patroller (medic) must have:

  • an Australian Ski Patrol Association (ASPA) first aid certificate or an equivalent overseas qualification acceptable to the ASPA
  • a minimum of two seasons experience in the occupation.

Ski technician must have one of the following:

  • accreditation or certification issued by ski tuning manufacturer(s) appropriate to the machinery used in the operations of the employer
  • a ‘statement of assessment’ issued by a qualified workplace assessor or human resource manager with the employer, that the overseas worker has training and/or work experience appropriate to employment in this occupation
  • a minimum of two seasons experience in the occupation.

Snow groomer must have:

  • a minimum of two seasons experience in the occupation
  • qualifications or work experience that can be readily assessed as appropriate to employment in the occupation for which they have been recruited.

Lift operator must have one of the following:

  • accreditation or certification issued by the manufacturer(s) appropriate to the machinery used in the operations of the employer
  • a ‘statement of assessment’ issued by a qualified workplace assessor or human resource manager with the employer, that the overseas worker has training and/or work experience appropriate to employment in this occupation
  • a minimum of two ski seasons experience in the occupation.
Salary Where an overseas worker is a ski instructor or snowboard instructor who meets one of the following conditions:

  • is employed on a part-time basis
  • has worked less than full-time hours in a particular week

the employer must pay to the overseas worker the hourly market salary rate or the Temporary Skilled Migration Income Threshold (TSMIT) Hourly Rate, whichever is greater.

For the avoidance of doubt, all other overseas workers to whom a snow sport labour agreement is applicable are to be employed on a full-time basis and paid a base rate of pay which must be equal to or greater than the TSMIT.

All overseas workers are to be paid at least fortnightly.

The terms and conditions of employment for overseas workers must be no less favourable than the terms and conditions of employment that are, or would be, provided to an Australian worker performing the same duties at the same location. Where an Australian employee is undertaking the same role, evidence of salary and guaranteed overtime arrangements must be provided with your request.

Any payments deducted from the overseas workers salary can only be made with the written permission of the overseas worker.

Employers must demonstrate that any deductions are consistent with the Fair Work Act 2009 and/or local industrial instruments.

How to request a snow sport industry labour agreement

You can request a snow sport industry labour agreement once you have determined that you meet the requirements and have completed stakeholder consultation – refer to the Information about requesting a labour agreement for details.

Minister of religion labour agreement

This page provides information specific to requesting a minister of religion labour agreement and should be read in conjunction with the information guideInformation about requesting a labour agreement.

A minister of religion labour agreement is the only pathway which allows overseas skilled workers to work in the occupation of minister of religion.

The minister of religion labour agreement allows Australian religious organisations to sponsor the temporary and permanent entry of overseas skilled workers. The terms and conditions of the agreement have already been established and are non-negotiable.

Key settings

Visa subclass Temporary Work (Skilled) visa (subclass 457)

Employer Nomination Scheme visa (subclass 186), either where an overseas worker has held a subclass 457 visa as a primary visa holder, for a minimum period of two years, or through the subclass 186 Agreement stream.

The final decision on which visa pathway is appropriate will be made based on the religious organisation’s business case.
Religious organisations Defined as per Regulation 1.03 of the Migration Regulations 1994:

  1. the activities reflect that it is a body instituted for the promotion of a religious object
  2. the beliefs and practices of the members of which constitute a religion due to those members:
    1. believing in a supernatural being, thing or principle
    2. accepting the canons of conduct that give effect to that belief, but that do not offend against the ordinary laws
  3. meet the requirements of section 50-50 of the Income Tax Assessment Act 1997
  4. their income must be exempt from income tax under section 50-1 of that Act.

Religious organisations must provide with their request a detailed organisational structure.
English language A concession to the English language proficiency requirement applies. Overseas skilled workers must meet one of the following English language proficiency requirements:

  • demonstrate an average test score of at least 5.0 in an International English Language Testing System (IELTS), or an equivalent accepted test
  • hold a valid passport from one of the following countries:
    • Canada
    • New Zealand
    • The Republic of Ireland
    • The United Kingdom
    • The United States of America
  • have completed at least five cumulative years of full-time study in a secondary and/or higher education institution where instruction was conducted in English.

A further concession to English language proficiency requirements might be considered where the visa holder will be directly serving the needs of an ethnic group and interaction within the wider Australian society will be limited – for example they are working in a cloistered or monastic environment.
Occupation Religious organisations can only nominate the occupation of minister of religion (Skill level 1 – ANZSCO 272211).

The nominee is required to have a leadership role within the organisation. We will consider the size of the organisation and its workforce composition if more than one overseas nominee is proposed by the Australian employer.

Religious organisations must provide, with their request, the following supporting information:

  • title of position within their faith tradition
  • duty statement for the position
  • a copy of an employment contract.
Skills, qualifications and experience Ministers of religion must have:

  • been ‘ordained’ or have ‘professed to a religious life’ as a minister of religion (or equivalent accreditation process within the faith tradition), and
  • minimum qualifications equivalent to a relevant Australian Qualification Framework (AQF) bachelor degree, or
  • undertaken at least five years of relevant structured training or instruction. Experience does not meet this criterion.

Religious organisations must provide, with their request, details of the ordination process, training structure and minimum qualifications for the role of minister of religion.
Age Visa applicants must be no more than 60 years of age at time of visa application for a subclass 186 visa.

Further concessions might be considered where there is not a tradition of retirement within the faith tradition and where the needs of aged religious workers continue to be met by the religious organisation without recourse to the aged pension.

No age requirements apply when applying for a subclass 457 visa only.
Salary Overseas ministers of religion must receive terms and conditions of employment that are no less favourable than that provided to an Australian minister of religion working in the same role in the same location.

The minimum salary (for both subclasses 457 and 186) must be either:

  • no less than the temporary skilled migration income threshold (TSMIT) – monetary or non-monetary benefits might be considered in the calculation of TSMIT
  • where a vow of poverty is required by the wider religious organisation for the occupation, the sponsor attests that overseas workers will be provided equivalent terms and conditions to that of Australians in the same occupation in the sponsoring organisation and will provide all living needs, including board and lodging, health, education, welfare and any other costs incurred by the minister of religion.

Religious organisations must provide evidence of remuneration that is paid to, or would be paid to, an Australian in the same role and location.
Other Employers are asked to identify nominees at the time of request.

Employers will not be required to:

  • undertake stakeholder consultation when requesting a labour agreement
  • provide evidence of meeting training benchmark requirements and obligations
  • provide evidence of domestic recruitment efforts.

How to request a minister of religion labour agreement

You can request a minister of religion labour agreement once you have determined that you meet the requirements – refer to the Information about requesting a labour agreement for details.

More info on Industry specific Labour Agreements

VisaEnvoy-dairy-industry-labour-agreement

VisaEnvoy-on-hire-labour-agreement-information-booklet-september

List of current labour agreements

The list of current labour agreements has recently been updated.

Labour agreement changes

The Department continues to progress changes to existing labour agreement templates to cater for the Temporary Skill Shortage (TSS) program – including:

  • revised agreements have now been sent out to fishing industry labour agreement holders for signature and will be sent out to existing company specific labour agreement holders shortly
  • remaining labour agreement sponsors will be contacted between late January and mid-February to sign new agreements where required in order to facilitate further nomination applications being lodged where approved ceilings remain available.

Note: further discussions are planned with representatives from the dairy, snow, hospitality and meat industries regarding their labour agreement templates. Interim amendments will, however, be made to existing agreements in the meantime to avoid any negative impacts on businesses as a result of the March 2018 changes – given the short time frames available.

New regional concessions for the dairy, fishing, meat and pork industry labour agreements

From 1 November 2021, new regional concessions became available for the dairy, fishing, meat and pork industry labour agreements. These support businesses in regional Australia to address critical skills shortages.

The following new concessions are available for businesses based in Category 2 and Category 3 regional locations:

  • Additional work experience concessions. These reduce the level of work experience needed to meet the relevant visa criterion.
  • Additional English language concessions. These reduce test score requirements for visa applicants sponsored by businesses.
  • Additional flexibility around Labour Market Testing for Category 2 and 3 located businesses. Previously, advertising had to be undertaken within four months of nomination to fill a position with a skilled worker. We have increased this to 12 months. Category 3 businesses also have reduced evidentiary requirements.
  • An additional salary concession. This consists of a 10% reduction to the Temporary Skilled Migration Income Threshold (TSMIT) for Category 3 businesses.
  • A new age concession of 55 years for Category 2 and 3 businesses. This means businesses can now sponsor older applicants for certain visa subclasses. They may have diverse work experience and/or be willing to migrate to regional areas.

Businesses located in Category 2 and 3 regional locations may also access the above regional concessions under a company-specific labour agreement. You must accompany any concessions requests with strong reasons as to why standard visa criteria should not apply.

In addition to the above:

  • A pathway to permanent residency is now available under the fishing industry labour agreement (FILA). This is for all FILA occupations, for the following visas:
  • The occupation ‘Seafood Process Worker’ (ANZSCO 831313) is now available under the FILA for businesses in Category 2 & 3 regional locations. This has qualifications and experience requirements equivalent to those under ANZSCO. There is a pathway to permanent residency.
  • The occupation ‘Dairy Cattle Farm Operator’ (070499) is now available under the dairy industry labour agreement. This has qualifications and work experience requirements equivalent to ANZSCO Skill Level 4. There is a pathway to permanent residency.

Labour Agreement requirements Sc 186, Sc 482 and Sc 494 visas

The Migration Amendment (Labour Agreement Requirements (Subclass 186, 482 and 494 Visas)) Regulations 2024 amends the Migration Regulations 1994 to make changes to various criteria for the 482, 494 and 186 visas in the Labour Agreement stream, namely English language proficiency, age, qualifications and work experience, skills assessments, pathways to permanent residence, as well as salary, sponsorship obligations and occupations.
Below is a summary of the amendments made by the instrument:

Definition of Labour Agreement
The definition of work agreement and references to this have been revised with a new definition for “Labour Agreement”. A new regulation 2.75C has also been added to provide clear statutory authority for the Minister to enter into a labour agreement and facilitate settings that already exist in the current Labour Agreement program, including:

  • who the Minister may enter into an agreement with,
  • the matters which may be specified in a labour agreement, and
  • a labour agreement may be varied by the parties after the agreement has come into effect.

Amendments to the Skills in Demand (Sc 482) visa – Schedule 1 criteria (Mandatory Skills Assessments)
The instrument restricts the Schedule 1 criteria regarding mandatory skills assessments to primary applicants for a SID visa in the Specialist Skills stream or the Core Skills stream. This is because an applicant in the Labour Agreement stream will be assessed under the skills assessment criteria set out in Schedule 2 cl.482.242A.
Amendments to the Skills in Demand (Sc 482) visa – Schedule 2 criteria

  •  References to the “Commonwealth” in relation to work agreements is substituted with the “Minister”
  • New provision to substitute cl.482.242(b) which allows the primary applicant for a SID or TSS visa in the Labour Agreement stream to satisfy the relevant work experience requirements if they have worked in the nominated occupation or a related field for the period specified by the Minister in the Labour Agreement, for the nominated occupation and for the visa
  • The applicant must satisfy any requirements around skills, qualifications and employment background requirements as specified by the Minister in the Labour Agreement. If the Minister specifies that the applicant’s skills must have been assessed as suitable for the nominated occupation, then the applicant’s skills have been assessed by the relevant skills assessing authority, or otherwise the person or body specified by the Minister in the Labour Agreement.
  • The applicant must satisfy the English language requirements as specified by the Minister in the Labour Agreement

Amendments to the Employer Nomination Scheme (Sc 186) visa

  •  The instrument repeals cl,186.212B which previously required an applicant who is the holder of, or the last substantive visa was, a subclass 491 or 494 visa, to have held that visa for at least 3 years at the time of application for the 186 visa. The repeal of this provision from the common criteria effectively allows the Minister to specify alternative requirements and concession regarding the period of stay requirements in relation to Labour Agreements. However, this criterion will continue apply for applicants for the 186 Direct Entry stream.
  • The age requirement in the Labour Agreement stream which previously required an applicant to be under 45 at the time of application will be replaced with new provisions that enable an applicant to meet the age requirement where they have not reached the age specified by the Minister in a Labour Agreement that is in effect with the employer who is a party to a Labour Agreement. The purpose of this is to strengthen the legislative basis for the Minister to specify alternative requirements to this age requirement in a labour agreement for applicants to the Labour Agreement stream for a Subclass 186 (Employer Nomination Scheme) visa.
  • The applicant must satisfy any requirements around qualifications, experience, language test and English language proficiency and skills requirements as specified by the Minister in the Labour Agreement. If the Minister specifies that the applicant’s skills must have been assessed as suitable for the nominated occupation, then the applicant’s skills have been assessed by the relevant skills assessing authority, or otherwise the person or body specified by the Minister in the Labour Agreement.

Amendments to the Skilled Employer Sponsored Regional (Provisional) (Sc 494) visa

  •  The age requirement in the Labour Agreement stream which previously required an applicant to be under 45 at the time of application will be replaced with new provisions that enable an applicant to meet the age requirement where they have not reached the age specified by the Minister in a Labour Agreement that is in effect with the employer who is a party to a Labour Agreement.
  • The applicant must satisfy the English language requirements as specified by the Minister in the Labour Agreement
  • The applicant must satisfy any skills, qualifications and employment background requirements as specified by the Minister in the Labour Agreement
  • The applicant must have worked in the nominated occupation or a related field for the period specified by the Minister in the Labour Agreement

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