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Labour Agreements for Employers

Information current as at October 2026. Rules, fees and lists change often, so check your circumstances with us before you act.

A labour agreement is a formal agreement between your business and the Australian Government that lets you sponsor overseas workers on terms that the standard visa programs do not allow. Employers use labour agreements when the occupation is not on the occupation lists, when the market salary is below the income threshold, or when workers need concessions on English, age or experience.

Labour agreements are used with the Skills in Demand (subclass 482), Skilled Employer Sponsored Regional (subclass 494) and Employer Nomination Scheme (subclass 186) visas. Since December 2024, the age, English, skills and work experience requirements for labour agreement workers are set in each agreement rather than fixed in the regulations. Need advice on your situation? You can book a consultation with our employer team.

Types of labour agreements

  • Negotiated for one business where there is a genuine skill shortage that the standard program and industry templates do not cover.
  • Suits employers with unusual occupations, large ongoing recruitment needs, or a need for specific concessions.
  • Takes the longest to negotiate because every term is assessed individually.

Is a labour agreement right for your business?

Situation Standard 482 or 186 Labour agreement
Occupation is on the Core Skills Occupation List Usually the best option Not usually needed
Occupation is not on any list (for example some semi-skilled roles) Not available unless earnings reach the SSIT and the occupation is eligible for Specialist Skills May be possible
Market salary is below the CSIT of $79,423 Not available Income concessions may be negotiated in some industries
Worker is 45 or older and needs permanent residence Limited exemptions Higher age limits are common
Worker has lower English scores Must meet the standard requirement Concessions often available
You need workers quickly for a common occupation Faster Slower to set up, then nominations can be quick

How to request a labour agreement

Labour agreement requests are lodged online through ImmiAccount. There is no fee to request an agreement, but the usual nomination fees and Skilling Australians Fund levy apply to each nomination made under it.

  • Check you are eligible

    The business generally needs to have been actively and lawfully trading in Australia for at least 12 months and to be financially viable, usually supported by an accountant’s statement.

  • Define the positions

    List the occupations with ANZSCO codes, the number of workers needed each year, the duties, the salary and the location of each role.

  • Test the labour market

    Show recent, genuine attempts to recruit Australian citizens and permanent residents for the roles. Industry templates set their own rules. See labour market testing.

  • Consult stakeholders

    Consult the relevant industry body and unions about the request. Stakeholders are usually given 10 working days to respond, plus 5 more working days after a follow up. Requests lodged without consultation are usually returned.

  • Lodge the request

    Include the business case, evidence and a declaration about any retrenchments or redundancies in the last 12 months.

  • Sign and nominate

    Once the agreement is signed (usually for five years), you are an approved sponsor for its term and can nominate workers up to the annual ceiling in the agreement.

Obligations under a labour agreement

  • All the usual sponsor obligations apply, including paying at least the agreed salary and providing equal terms and conditions. See sponsor obligations and compliance.
  • You must stay within the occupations and annual ceilings in the agreement.
  • Most agreements require you to keep trying to recruit and train Australians and to report to the Department when asked.
  • Records generally need to be kept for the period set in the agreement.
  • Workers must not be charged any fees for their recruitment or sponsorship.

Frequently asked questions

Industry templates are usually quicker than company specific agreements because the terms are already set. The stakeholder consultation alone takes at least two to three weeks, so allow time for it.

No. Being party to a labour agreement makes you an approved sponsor for the term of the agreement for nominations made under it.

Some industry agreements and DAMAs allow a concession for certain occupations, but the worker must still be paid at least the market rate an Australian would receive. Concessions are never automatic.

Yes, for most labour agreement nominations. Ministers of religion and religious assistants nominated under the labour agreement streams of the 482 or 186 are exempt.

Usually yes. Each agreement sets the pathway, typically the 186 Labour Agreement stream after a set number of years on the 482.

An industry agreement that lets approved labour hire businesses sponsor skilled workers and place them with host businesses, under strict conditions.

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