What is a Labour Agreement?

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

Long Answer

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

A labour agreement can take about six months to be negotiated. It comes into effect when it has been signed by all parties involved in the negotiations.

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 you can negotiate an individual agreement.
A good quality labour agreement can take four to six months to finalise. A labour agreement is typically valid for three years.

- Ryan Curtis-Griffiths, Director Nevett Ford Lawyers (immigration lawyer & registered migration agent)