Kindra Migration Lawyers recently received Labour Agreement approval under the Company Specific stream for a disability support provider in New South Wales.
WHAT IS LABOUR AGREEMENT?
A Labour Agreement (“LA”) is a formal agreement between the Department of Home Affairs and an individual or organisation in Australia that enables an employer to sponsor skilled overseas workers where there is a genuine need that cannot be met within the Australian labour market, and where standard sponsored programs are not available (e.g. when the position does not fall within the eligible occupation lists).
LAs are generally valid for five years and often include additional terms and conditions. These agreements are negotiated to ensure that where standard requirements are waived or concessions agreed, and additional requirements are implemented.
BACKGROUND OF THE CASE
Our client is a registered NDIS provider based in New South Wales, offering a range of disability support services, including community support, in-home support, support coordination, supported independent living and individual skills development. Our client had extensive evidence of labour market testing, as they had been genuinely attempting to fill the position of Disability Support Worker (ANZSCO 423111) from the local labour market. However, they were unable to find suitable candidates.
Although they were an approved Standard Business Sponsor, they could not sponsor overseas workers under the Standard Business Sponsorship programs because the position was not on the lists of eligible occupations. In light of this, our client engaged us to request a LA to facilitate multiple sponsorships for this position.
OUR STRATEGY
As the LA request process largely sits outside of a legislative framework, with most requirements outlined only in Departmental policy, we undertook thorough research and reviewed our previous cases to develop an effective strategy tailored to our client’s application. In addition, for the request to be considered, we needed to present a compelling case demonstrating that the occupation is niche and exceptional, currently experiencing a labour market shortage and aligned with Australia’s national interest.
Extensive Records of Recruitment Activities
We were not shy to present the extensive efforts our client undertook to recruit suitable candidates from the local labour market. Our client not only published job advertisements on reputable recruitment websites but also participated in local community events to attract domestic candidates over the past few years. The history of recruiting activities demonstrates our client’s genuine efforts and commitment to Australian labour force.
Detailed Training Initiatives and Plan for Reduction Reliance
As we understood that a LA is intended to be a temporary remedy for Australian businesses and not an ongoing solution to labour shortages, we outlined detailed training initiatives and a plan to reduce reliance on overseas workers. The objective is to ensure that upon completion of the LA, the business will not seek a further agreement. We also needed to demonstrate that entering into a LA would not undermine employment opportunities for Australians or be inconsistent with the Australian government’s objectives. Under the labour agreement, the business will address critical short term workforce gaps while implementing a long term workforce strategy focused on developing internal capacity through local hiring and upskilling initiatives. This approach will ultimately benefit the Australian community which contributed to the Department’s decision to approve the application.
Occupation Ceilings
Based on our experience, we deliberately did not seek occupation ceilings for permanent visa programs, as the likelihood of success is generally higher when requesting temporary visa programs only. A deed of variation can be requested after approval to facilitate permanent visa sponsorship, and temporary visa holders may still transition through the Standard Employer Nomination Scheme.
Accordingly, we did not request ceilings for the permanent program. Instead, we sought an increased number of placements under temporary visa programs to urgently address the skill shortages experienced by our client.
Diligent Engagement with Stakeholders
Consultation with relevant stakeholders is a mandatory requirement under the Company Specific stream. On behalf of our client, we went beyond simply contacting stakeholders and ensured meaningful consultation with appropriate industry bodies. This included engagement with NDIS representatives and relevant union bodies.
THE MINISTER’S DECISION
The Minister approved the LA application with the occupation ceilings as proposed. As we did not seek any concessions in relation to English language proficiency, age, or skills requirements, the standard criteria apply under this agreement.
The application was approved without any request for further information.
This LA will be valid for five years. During this period, our client may sponsor overseas workers in the position of Disability Support Worker (ANZSCO 423111) in accordance with the agreed number of placements for each respective year.
WHAT THIS OUTCOME MEANS
Our client can now sponsor overseas workers for the position of Disability Support Worker (ANZSCO 423111) under the Subclass 482 Skills in Demand visa in the Labour Agreement stream. A specified number of nominations has been allocated for each year, and applications must be lodged and approved within the relevant year.
This role is integral to the business’s operations and to the local community, particularly given the ongoing skills shortage in this sector.
While the Labour Agreement remains in effect, our client must comply with the sponsor obligations set out in the agreement.
This outcome highlights the importance of strategic preparation, detailed submissions, and alignment with government priorities in securing a five year Labour Agreement without delays caused by requests for further information.
