Written by Gaurav Duggal · Registered Migration Agent · MARN 1805710 · Last updated October 2026
If the standard visa programs do not fit your hiring needs, a labour agreement in Australia may be the next option to consider. Labour agreements are formal arrangements between an employer and the Australian Government that open sponsorship pathways when the usual rules cannot meet a genuine workforce need. This guide explains the types of agreement, who they are for and what Home Affairs expects from a business that applies. It is general information current as at October 2026, based on the Department of Home Affairs website. It does not guarantee any outcome, and complex cases need personal advice from a registered migration agent.
What is a labour agreement in Australia?
Home Affairs describes labour agreements as arrangements that enable approved businesses to sponsor skilled overseas workers when there is a demonstrated need that cannot be met in the Australian labour market, and where the standard temporary or permanent visa programs are not available. They are generally in effect for five years.
Once an agreement is in place, the Department can grant visas under one or more of the Skills in Demand visa (subclass 482), the Employer Nomination Scheme visa (subclass 186) and the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494). There is no cost to request a labour agreement, but costs apply at the nomination and visa stages.
What types of labour agreement are there?
Industry labour agreements
Industry labour agreements are for a specific industry and have fixed terms and conditions. Home Affairs gives aged care, meat and horticulture as examples. If your business sits within one of these industries, an existing industry agreement may already cover your needs.
Designated Area Migration Agreements (DAMA)
A DAMA is a formal agreement between the Australian Government and a state or territory government or regional authority. It gives access to additional occupations that are not available in the standard skilled migration program. Our DAMA guide explains how regional employers use them.
Company specific labour agreements
A company specific agreement is made with an individual employer. Home Affairs states it is for a business where a genuine skills need is not covered by an industry agreement, no DAMA or project agreement is in place, and the occupations in shortage are not available under the standard skilled visa programs, unless a strong and compelling business case has been provided.
Skilled refugee labour agreement pilot
Home Affairs also lists a skilled refugee labour agreement pilot among the types of agreement. Check the Department’s page for its current terms.
Who should consider a company specific labour agreement?
Home Affairs is clear that a company specific agreement should not be considered if you can use the standard skilled visa programs, or if you are covered by an industry agreement or DAMA. Before starting, check whether the occupation can be sponsored through the Skills in Demand visa, which our employer sponsorship guide explains, and whether your region has a DAMA.
A company specific agreement is generally a fit for employers who can show an exceptional need for niche skills that Australian workers cannot meet, and who have a strong case for why the standard programs fall short.
What does Home Affairs require from the employer?
For a company specific agreement, Home Affairs sets out requirements in three areas.
Show your skill needs
- Evidence of the niche skills you seek from overseas.
- Evidence of your many and diverse recruitment efforts.
- A detailed job description, including tasks.
- Positions at ANZSCO skill level 1 to 4, with consideration of skill level 5 equivalents only in exceptional situations for businesses in Category 3 regional areas.
Show your workforce needs
A company specific agreement is described as a temporary solution only. You must show that overseas workers will not be more than one-third of your total workforce, and that you have a plan to train and employ Australians so you will not need a future labour agreement. Overseas workers must meet the English language requirements of the Skills in Demand visa.
Be an Australian business in good standing
- Be an Australian registered business in good standing.
- Show the business has been lawfully and actively operating in Australia for at least 12 months.
- Provide evidence of financial viability from a chartered or certified practising accountant, showing you can support the number of overseas workers you propose.
- Have no adverse information, including no breaches of law in any Australian jurisdiction and no current investigation by an appropriate authority.
- Not be insolvent, and not have given false or misleading information to any authority.
What concessions can an employer ask for?
A company specific agreement can request concessions to standard visa requirements, such as English language, age where relevant, salary and work experience. Home Affairs expects strong reasons for each concession and states it will not apply concessions that create inconsistent employment conditions and salary requirements between overseas workers and Australians in equivalent roles. Requests for greater concessions than the template outlines are unlikely to be approved.
A company specific agreement can also request a permanent residence pathway through the subclass 186 visa. The subclass 494 visa has a permanent residence pathway too, but it is only available to overseas workers employed in regionally located businesses. See our 186 visa stream comparison and 494 employer guide for the visa stage.
Do you have to consult stakeholders first?
Yes. For a company specific agreement, Home Affairs requires consultation with relevant stakeholders such as the industry body, the relevant union and any community group the agreement affects, for example schools or health services. You provide the number and occupations of overseas workers by year, the workplace location, the proposed salary and how you reached it, the concessions you seek and your training plans. Stakeholders are given 10 working days to respond, with a further 5 working days if there is no reply, and your consultation details go in with the request.
How should an employer prepare?
Start by testing whether the standard programs can work, because a labour agreement is the exception. Gather recruitment evidence early, have your accountant prepare the financial viability evidence, draft a training plan for your Australian workforce and build a clear business case for each concession. Our Employer Sponsorship Readiness Checklist and sponsor cost calculator help with the standard pathway comparison, and the 482 vs 494 vs DAMA cost comparison shows how the options differ.
Frequently asked questions
Is there a fee to request a labour agreement?
Home Affairs states there is no cost to request a labour agreement. Costs are associated with the nomination and visa stages that follow.
How long does a labour agreement last?
Home Affairs states that labour agreements are generally in effect for five years.
Which visas can be granted under a labour agreement?
A labour agreement allows the Department to grant visas under one or more of the Skills in Demand visa (subclass 482), the Employer Nomination Scheme visa (subclass 186) and the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494).
Can an employer use a labour agreement if the standard visas are available?
Home Affairs states that a company specific labour agreement should not be considered if you are able to use the standard skilled visa programs, or are covered by an industry labour agreement or Designated Area Migration Agreement.
What is the difference between a labour agreement and a DAMA?
A Designated Area Migration Agreement (DAMA) is a formal agreement between the Australian Government and a state, territory or regional authority to access additional occupations not available in the standard skilled migration program. Employers then work within that framework. A company specific agreement is made with an individual business.
Do employers have to consult anyone before requesting a company specific agreement?
Yes. Home Affairs states that you must consult relevant stakeholders such as the industry body, the relevant union and any community group the agreement affects, and give them 10 working days to respond.
This article is general information only and is not migration advice. Complex cases need personal advice from a registered migration agent.
Not sure whether a labour agreement fits your business?
Book a consultation with Immigrad and we will assess whether the standard programs, a DAMA or a labour agreement is the right path.