Why Labour Agreements could be the way forward for Australian Businesses with skill shortages

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Labour Agreement – TSS to PR Australian Working Visa

 According to November 2016 data from the Australian Bureau of Statistics, of the 1.7 million recent migrants and temporary residents in Australia, 65 percent are employed –  that’s roughly one million people.

On these figures, employment of migrants by Australian organisations involves many employers and a staggering amount of regulation. A lot of that employment happened through the 457 visa system. With the 457 visa now abolished and replaced by the Temporary Skill Shortage (TSS), visa (Subclass 482), active employers and applicants must try to find ways for employers to be able to recruit the employees that they need even if the occupation has been cut from the DoHA lists for temporary or permanent resident purposes.

Occupations that have been cut 

Since the changes were announced last year by PM Malcolm Turnbull, over 200 trades have been cut from the various lists of professions from which employers can select migrant workers.

The remaining occupations have been divided into a Short-term Skilled Occupations List (STSOL) and a Medium and Long-term Strategic Skills List (MLTSSL).

 Applicants who find their occupation on the STSOL will not be eligible for permanent residency, however, their employers could become part of a Labour Agreement that has specific “pathway to Australian permanent residency” clauses. 

What is a Labour Agreement – published by DoHA

  • A Labour Agreement is a formal arrangement negotiated between an employer and the Australian Government and will only be considered where a genuine skills shortage exists, and there are no suitably qualified or experienced Australians readily available.
  • A Labour Agreement allows an employer to recruit skilled overseas workers for occupations approved under the agreement. The employer must be able to demonstrate, among other things, that it has genuinely attempted to hire Australian workers for the positions and that there are no appropriately qualified Australian workers. Also, there is an expectation that overseas workers employed under a Labour Agreement will be paid the market salary.
  • The Labour Agreement program is designed to address a genuine labour market need rather than to accommodate an employer’s preference to employ a particular overseas worker.
  • A Labour Agreement defines employer obligations such as the terms and conditions of employment for the skilled overseas workers and training requirements for Australian employees.
  • The Labour Agreement defines the required skill and English language levels that overseas workers under the agreement must meet.
  • Employers requesting a Labour Agreement should provide a comprehensive submission to the Australian Government, represented by the Department of Home Affairs (DoHA). The bid will be assessed, and additional information may be requested.

Please note that not all Labour Agreement requests are approved.  EasyMigrate can provide help in preparing a comprehensive submission for any Employer applying for a Labour Agreement. All information from the employer is treated as Commercial-in-Confidence. 

To find out more about Labour Agreements or to see if your employer is eligible to apply for a Labour agreement contact our team to today or call +61 8 9221 4888.