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Important points about labor agreement and its type

As we all know, Australia is on the fast-track of development. This high-speed development requires manpower and skilled workers that can help in every field. It creates a very high demand for talented and skilled people in Australian markets that cannot always be filled by local markets. Some of these development projects require a special type of skills that are not readily available in Australia. This is why the Australian government offers many ways through which employers, industries or companies can recruit people from overseas to help in the development and prosperity of the country.

In this article, we will discuss one of these ways and that is trough labor agreement.

What is a labor agreement?

Sometimes it is difficult to find the talent for a specific job in the country you are working in. this leaves you with only one choice and that is hiring someone to do that job from overseas. A labor agreement is a contract between an eligible business and the department of home affairs that allows the employer to recruit employees from outside Australia. But the employer has to make sure that no one in Australian markets is available to perform that specific job and this is why he or she is getting employees from outside Australia.

Every labor agreement has its own unique terms and conditions depending upon the needs and requirements of that certain industry. The eligibility criteria for the employees may also vary from industry to industry. This agreement is usually for 5 years but that may also vary with the different types of this contract.

What are the different types of labor agreements?

Here we will discuss different types of the labor agreement and will try to understand the individuality of each of its type

Company-specific labor agreement

As we know that labor agreement is usually between industry and the department of home affairs. But this agreement sometimes fails to fill the void of skilled workers for a specific company. And no other visa stream is also unable to fulfill that need. This is where a company based labor agreement comes in scene and it allows a specific company to recruit skilled individuals from outside Australia according to their needs.


The employee must satisfy the following conditions to be eligible for this visa

  • Applicant must have a minimum of 2-year experience of working in the occupation related field
  • Requirements of ANZSCO (Australia and New Zealand standard classification of occupations) related to the applicant’s occupation must be fulfilled.
  • Must satisfy pay scale rules for temporary skill shortage visa
  • Should be according to all health and character standards


Designated area migration agreements

This type of labor agreement is a contract between a regional area and the Australian government. This allows special conditions on which a regional area or territory can employ workers from overseas. These special conditions must not be covered by any other visa types. This agreement is usually done for 5 years under a temporary skill shortage visa subclass 482 or employer nomination scheme visa subclass 186.

  • Employees under this labor agreement must fulfill the following conditions
  • Must be sponsored by an eligible employer working from DAMA specified regional area
  • The individual must belong to an occupation that is in the relevant occupational list
  • Should be according to all health and character standards


Project agreement

This type of agreement is when a project company is on a project and faces a shortage of manpower. This contract helps the project company to recruit labor from overseas for that project.

Global talent employer-sponsored program

This program is for highly talented individuals. The employers in Australia can sponsor these highly talented individuals to do special jobs for which the talent is not available in Australia. This type of labor agreement becomes effective only if the right talent for a high profile job is not present in Australia or if any other visa stream cannot bring that individual to Australia for work.

The basic objective behind introducing this program is to bring highly talented individuals to Australia who can work towards the prosperity of the country and can train local talent in that particular field.

This has two streams

  • Established business stream
  • Startup stream


Industry labor agreement

This labor agreement is targeted to those industries that are facing a shortage of workers and skilled individuals and local markets are unable to fill this void. This contact is done between that specific industry and the department of home affairs and it helps the industry to recruit people with skills to do a particular job in that industry from overseas.

Here is the list of industries that have an eligible ongoing labor agreement

  • horticulture
  • pork
  • on-hire
  • dairy
  • fishing
  • meat
  • fine dining
  • advertising
  • minister of religion


Horticulture has a new labor agreement and is quite famous on Australian immigration news. Many skilled individuals related to this field is seeking ways to get an Australian visa through this new horticulture industry labor agreement stream


If you also want to know about it ask our best migration agent in Sydney who can definitely help you.

Hopefully, you find this discussion on labor agreement and its types interesting. If you want to know more you can consult a certified migration company. The Migration is an Australian certified company providing the best visa advice for every Australian visa type like family visa Australia, general skilled migration visa, employer-sponsored visas, etc. you can consult our migration agent about any confusion you have about any Australian visa types.

You can also get information about other visas.

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I’m Nasir Nawaz. I’m a registered migration consultant in Australia. I am based in Sydney. I’ve studied Master of Laws at the University of New South Wales. I’m providing immigration services for several years.

Consult with me for legal advice on Australian visas to permanently live, study, and work in Australia.