A Labour Agreement is a formal arrangement between an employer and the Australian Government for the entry of a specified number of overseas workers via the temporary visa subclass 482 or 494 and/or the permanent visa subclass 186, some of which may involve employer or employee concessions.

Like Australia’s other skilled migration programs, the Labour Agreement stream is intended to supplement and complement the domestic workforce, not to replace or reduce opportunities for Australian workers who should be employed, trained and upskilled as the employer’s first choice. Labour Agreement requests must be based on a sustainable, evidence-based employer business model that is not wholly or overly reliant on overseas workers but demonstrates need to employ them because Australian workers with suitable qualifications, training and experience cannot be sourced through domestic recruitment attempts.

The Department of Home Affairs assesses Labour Agreement requests. Assessment is generally time-consuming and often involves complex negotiations. The Minister may intervene directly to approve or decline a request that is considered exceptional, sensitive, likely to attract media or stakeholder interest, that impacts the domestic economy or national interest, or that seeks additional concessions.

Once an Agreement is approved, the employer is responsible for nominating workers who meet the occupation criteria for an appropriate visa subclass under the terms and conditions of the Agreement.