Use of Labour Agreements – 457 Visas

Standard 457 applications involve the sponsoring employer nominating an occupation contained on a list known as the Consolidated Skills Occupation List (CSOL).

It sometimes occurs that a sponsor wishes to nominate an occupation which is not listed on the CSOL, in which case the standard 457 programme is not appropriate.

In situations such as this, the business may wish to give consideration to applying for 457 visas under what is known as a Labour Agreement. These agreements can be utilised in respect of skilled and semi skilled positions if it can be shown that there is a clear lack of available employees in the local labour market. For example, many abattoirs bring meat workers into Australia under Labour Agreements as there is a big shortage of people with the necessary skills to properly bone and slice meat.

The starting point in applying for approval of a Labour Agreement is to be able to demonstrate that there is a skills shortage in the relevant industry. It is also necessary to show what efforts have been taken to obtain suitably qualified persons and what training programs the employer has in place should such persons be found. It is also often necessary to enlist the support of peak body groups or unions where appropriate.

In the past there has been some reluctance on the part of employers to seek to enter into Labour Agreements – probably largely due to the perception that negotiating with a government department is a difficult thing to do. While there may be some truth in that, the department does make it clear that it is open to consider applications, and usually a well-documented case can be finalised within 80 days and even sooner, if urgent.

Nevett Ford lawyers has experience with preparation of labour agreements and would be happy to assist employers who may wish to investigate this option.