Most employer-sponsored skilled visa pathways rely on prescribed occupation lists. If your business needs to fill a role that is not on the relevant list (or the listed occupation does not match the duties you actually need performed), it can be difficult to access standard sponsorship options. In these situations, a labour agreement may provide a practical alternative. It is a government-approved arrangement that can allow sponsorship on tailored terms, sometimes with concessions to standard requirements, including through the Skills in Demand (subclass 482) and Employer Nomination Scheme (subclass 186) labour agreement stream.
Limitations of occupation lists
For most skilled visas, the worker must be nominated in an eligible occupation and show they have the skills and experience for that role. In some cases, they also need a formal skills assessment, which checks whether their qualifications and work history meet the standards for the nominated occupation. Occupation lists are intended to focus skilled migration on roles Australia needs. However, they are not exhaustive. Many genuine shortage roles are not listed, and some listed occupations do not neatly reflect the duties in modern businesses. Where the role you need is not listed (or the closest listed occupation does not fit), a labour agreement may be worth considering.
Labour agreements as an alternative pathway
A labour agreement can help where standard sponsorship is not available, or where standard requirements do not reflect the role or your business circumstances. It is a formal arrangement between the Australian Government and an employer (or an industry body/organisation) that can allow sponsorship outside the usual occupation lists. Depending on the agreement, it may also allow tailored requirements and, in some cases, concessions. Labour agreements can be used to support sponsorship through certain visa pathways, including the Skills in Demand (subclass 482) and Employer Nomination Scheme (subclass 186) labour agreement stream. There are three main types of labour agreements:
- Company-specific labour agreements
These are negotiated directly for a particular employer and assessed on a case-by-case basis. They are typically considered where there is a genuine, evidenced shortage and the need is not already covered by an industry labour agreement, a project agreement, or a Designated Area Migration Agreement (DAMA).
- Designated Area Migration Agreements (DAMAs)
DAMAs are designed for regional areas. They are formal agreements between the Australian Government and a state/territory government or regional authority, and they can provide access to a broader range of occupations and agreed concessions to help address local skills shortages. DAMA terms are set for the designated region and administered through a two-stage process (endorsement by the region, then visa/sponsorship steps with the Department of Home Affairs (DHA)).
- Industry labour agreements
These apply across specific industries where common terms are intended to apply to eligible employers. They are set by the Minister in consultation with industry stakeholders and are generally used where DHA has received repeated requests from the same industry, supported by evidence of an ongoing shortage. If an industry labour agreement applies, the terms are usually fixed (non-negotiable) and additional concessions are not available.
In summary, labour agreements can be a useful option where there is a genuine and ongoing recruitment gap but standard visa pathways cannot accommodate the role (for example, because the occupation is not listed or the closest listed occupation does not reflect the duties). While they are not a “shortcut”, they can provide a structured way to present your business case to DHA, supported by evidence of business need, local recruitment efforts, and proposed terms that protect Australian workers while allowing you to fill a critical skills shortage.
Negotiating a labour agreement
Where a labour agreement is negotiable (most commonly for company-specific agreements and some DAMAs), DHA will usually focus on whether the proposal is justified and workable in practice. In plain terms, you need to show:
(1) why the role is genuinely needed (and why it cannot reasonably be filled through an existing standard sponsorship option);
(2) what you have done to recruit locally (and why that has not met the need); and
(3) how the arrangement will operate (including duties, salary settings, workplace protections, and any requested concessions).
Practically, the process usually involves identifying the most appropriate agreement type, preparing a package of supporting documents (such as organisational charts, workforce planning material, recruitment advertising/results, and position descriptions), and then engaging with DHA on draft terms. Timeframes can vary depending on the type of agreement and the quality of evidence provided, so it helps to plan early and ensure the proposed role and duties are clearly defined from the outset. Industry labour agreements are different: employers generally apply under the published terms rather than negotiating, so the key task is confirming eligibility and ensuring your role fits within the pre-set occupation and concession settings.
Industries currently covered by industry labour agreements
At the time of writing, DHA lists 10 industries with industry labour agreements in place: advertising, aged care, dairy, fishing, horticulture, meat, minister of religion, on-hire, pork, and restaurant (premium dining). The purpose of these agreements is to address persistent, industry-wide shortages where employers cannot meet demand from the local labour market. Because settings can change over time (including eligible occupations and concessions), businesses should confirm the current position before proceeding.
Practical example: why the written terms matter
An example of how important written terms can be is the High Court decision in Construction, Forestry, Maritime and Energy Union v Personnel Contracting Pty Ltd [2022] HCA 1. The Court emphasised that where parties have entered into a comprehensive written agreement, their rights and obligations are determined primarily by the contract’s terms (even if the label used in the contract does not perfectly match how the work plays out day-to-day).For sponsorship, the takeaway is simple: the nominated occupation, position description and any labour agreement obligations should be drafted carefully and should match the duties the worker will actually perform.
