For construction employers struggling to recruit skilled international workers, the standard employer-sponsored visa pathways will usually be the first place to start.
But what happens when an occupation is not available under the standard migration program?
In some circumstances, a Labour Agreement may provide an alternative pathway.
Labour Agreements allow approved employers to sponsor overseas workers under agreed arrangements with the Australian Government where there is a demonstrated workforce need that cannot adequately be met through the Australian labour market or standard skilled migration programs.
For construction businesses facing persistent skills shortages, they can be an important workforce planning tool, however, they are not a shortcut around the normal sponsorship requirements.
A. WHAT IS A LABOUR AGREEMENT?
A Labour Agreement is an agreement between an employer, or group of employers, and the Australian Government that allows overseas workers to be sponsored under specifically agreed terms.
Depending on the agreement, it may provide access to:
- occupations that are not available through the standard skilled visa program;
- concessions to certain visa criteria;
- different salary arrangements (in limited circumstances); and
- temporary and/or permanent residence pathways.
The types of Labour Agreements that may be available are as follows:
Designated Area Migration Agreements (DAMAs)
For construction businesses operating regionally, a Designated Area Migration Agreement (DAMA) can be particularly relevant.
DAMAs are agreements covering specific geographic areas of Australia. They are designed to respond to labour shortages within those regions and can provide access to a broader range of occupations and, in some cases, concessions that are not available under the standard skilled migration program.
This means a construction business must operate within the relevant designated area, obtain endorsement from the relevant Designated Area Representative, and satisfy the requirements applying to that particular DAMA.
Company-specific Labour Agreements
A company-specific Labour Agreement is a more bespoke arrangement negotiated directly between an individual business and the Australian Government.
Employers generally need to demonstrate an exceptional need for overseas workers, extensive efforts to recruit Australians, the nature of the skills shortage, proposed employment conditions, workforce composition, and how the business intends to develop and employ its Australian workforce.
Where the occupation is already available through the standard skilled visa program, this would generally not be available unless there is a strong and compelling business case.
Project Agreements
Project Agreements may also be relevant to certain major construction projects and are designed for project companies experiencing genuine skills shortages during the construction phase of significant resource or infrastructure projects.
The agreement can establish a framework through which employers involved in the relevant project access overseas workers to address identified workforce shortages.
These arrangements are specialised and will not apply to most construction businesses, but they demonstrate how Labour Agreements can be used to address large-scale workforce requirements where conventional construction recruitment and migration programs are insufficient.
b. when should construction businesses consider a labour agreement?
One of the attractions of Labour Agreements is that they can potentially provide access to occupations or concessions that would otherwise be unavailable.
For businesses considering this pathway, the question they should ask is: “What workforce problem are we trying to solve, and is a Labour Agreement the right mechanism to solve it?”
For most construction businesses, the starting point would likely remain the standard employer-sponsored migration program.
A Labour Agreement becomes relevant where there is a genuine gap between the workforce the business requires and what the standard migration system allows – and that distinction is important.
Where a business has an ongoing shortage across multiple positions, operates in a DAMA region, requires an occupation outside the usual lists, or has workforce requirements that cannot otherwise be accommodated, the conversation may be very different.
C. LABOUR AGREEMENTS SHOULD FORM PART OF WORKFORCE PLANNING
Before pursuing a Labour Agreement, employers should understand:
- which occupations they genuinely struggle to fill;
- whether those occupations are already available through standard sponsorship;
- whether the business operates within a DAMA region;
- how many overseas workers are likely to be required over the coming years; and
- what evidence exists of Australian recruitment difficulties.
The key is identifying that need early.
Migration should form part of workforce planning before a skills shortage begins affecting project delivery. Understanding both the standard sponsorship pathways and the Labour Agreement framework allows construction employers to properly assess the options available to them.
D. HOW MULLINS LAWYERS CAN HELP
The Mullins Migration team assists construction businesses to assess their workforce requirements and identify the most appropriate migration strategy, including standard employer sponsorship, DAMAs, and Labour Agreements.
If your business is struggling to fill particular roles or you would like to understand whether a Labour Agreement could form part of your workforce strategy, please reach out to Corina Chen (cchen@mullinslawyers.com.au or 07 3224 0364) for an obligation-free chat.
