What is a labour agreement?
A labour agreement is a negotiated deal between an employer and the Australian Government that lets the business sponsor overseas workers on terms the standard skilled programs do not allow — occupations not on the standard lists, English or salary concessions, or age flexibility. When a business says "the visa system doesn't fit our workforce", a labour agreement is usually the mechanism that makes it fit — lawfully.
At a glance (updated 20 August 2026)
| Item | Position |
|---|---|
| What it unlocks | Sponsorship under the 482 (Skills in Demand), 186 (ENS) and 494 outside the standard occupation lists and, where negotiated, with English/salary/age concessions. |
| Who negotiates | The employer (or an industry body) with the Department of Home Affairs. |
| Typical condition | Demonstrated labour market need, genuine attempts to recruit locally, and consultation with the relevant industry stakeholders. |
| Term | Usually up to 5 years, with agreed annual ceilings on nominations. |
| Government cost | No charge to lodge a labour agreement request itself — the usual sponsorship, nomination and visa charges (and SAF levy) apply to visas under it. |
The five labour agreement streams
Industry labour agreements — fixed templates for defined industries (for example meat, fishing, dairy, pork, restaurant (fine dining), hospitality, aged care) with pre-set occupations and concessions; the fastest route where one exists
DAMAs (Designated Area Migration Agreements) — region-wide umbrella deals; an employer in a DAMA region seeks endorsement from the Designated Area Representative, then accesses that DAMA's occupation list and concessions
Company-specific labour agreements — negotiated from scratch for one business's demonstrated need; the most flexible and the slowest, with the heaviest evidence burden
Global Talent Employer Sponsored (GTES) — for established or startup tech-sector employers needing niche, highly-skilled roles
Project agreements — for occupations tied to endorsed infrastructure or resource projects
What the Department expects an employer to prove
A genuine, evidenced labour shortage in the specific occupations — recent recruitment attempts, vacancy data, workforce planning
Why the standard 482/186/494 programs cannot meet the need
Stakeholder consultation (relevant unions and industry bodies)
Capacity to meet sponsorship obligations — market salary rates, training benchmarks, record-keeping
Where labour agreement requests go wrong
Asking for a company agreement when an industry template or DAMA already covers the need — months of negotiation for nothing
Thin labour-market testing — old ads, wrong platforms, no salary evidence; the shortage claim collapses
Concession over-reach — requesting English or salary concessions the evidence does not justify sours the whole negotiation
No workforce plan — agreements are granted to businesses that can show how overseas recruitment fits a plan to build local capability
Forgetting the visas still follow — the agreement is only the doorway; each nomination and visa under it is assessed on its own merits, SAF levy included
Labour agreement strategy for employers — Australia-wide
Migration Vision works with employers in every state — mapping whether an industry agreement, DAMA endorsement or company-specific request fits, building the labour-market evidence, and running the nominations and visas that follow. One file, employer and workers at the same table.
Frequently asked questions
Does a labour agreement cost anything to set up?
There is no government charge for requesting the agreement itself. The usual costs sit on the visas under it — sponsorship and nomination charges, the SAF levy, and each worker's visa charge.
How long does a labour agreement take to negotiate?
Industry-template agreements and DAMA endorsements are typically months; company-specific agreements take longer and depend on the strength of the evidence. Start before the workforce gap becomes critical.
Which visas can be granted under a labour agreement?
The 482 (Skills in Demand), 186 (ENS labour agreement stream) and 494 — on the occupations and concessions the agreement specifies.
What is a DAMA?
A Designated Area Migration Agreement — a region-wide labour agreement. An employer in the region seeks endorsement from the local Designated Area Representative and then sponsors under the DAMA's occupation list and concessions, which typically go beyond the national lists.
Can a small business get a labour agreement?
Yes — size matters less than evidence: a genuine shortage, real recruitment attempts, market salary rates and the capacity to meet sponsor obligations.
Reviewed by Dr Asad Muhammad Khan, Registered Migration Agent, MARN 2619525. Updated 20 August 2026 — stream structure and program rules stated from the Department of Home Affairs labour agreement program pages current on that date; agreement-specific terms are negotiated case by case. This page is general information, not migration advice for your circumstances.
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