Company Specific Labour Agreements

Company Specific Labour Agreements in Australia are tailored migration arrangements between individual businesses and the Australian Government, designed to address unique labour shortages that cannot be met through standard skilled migration programs. These agreements allow employers to sponsor overseas workers for roles that are not covered under existing visa categories or where standard visa conditions, such as English language requirements or salary thresholds, are not suitable for the company’s needs.

A company specific labour agreement is negotiated on a case-by-case basis, considering the employer’s specific circumstances, industry, and labour market needs. These agreements typically apply to businesses that have demonstrated genuine efforts to recruit locally but have been unable to find suitable Australian workers. The agreement can provide concessions on visa requirements, making it easier for businesses to sponsor foreign workers for both temporary and permanent positions.

At Australian Migration Lawyers, we have knowledge and experience in assisting parties negotiate Company Specific Labour Agreements and navigating Skilled visa pathways. Contact us if you have specific questions or require further information.

Why should a company consider a CSLA?

A company should consider a Company Specific Labour Agreement when it faces unique labour shortages that cannot be resolved through Australia’s standard skilled migration programs. Here are several reasons why opting for such an agreement can be beneficial:

• Addressing Critical Skill Gaps: if a company requires highly specific skills that are not readily available in the local labour market, this type of agreement promotes overseas recruitment to meet these precise needs.
• Customised Concessions: unlike standard visa programs, CSLAs can provide flexibility and concessions with visa requirements such as lower English language proficiency requirements, adjusted salary thresholds, or modified age limits, allowing businesses to access the skills they need without the constraints of standard visa conditions.
• Tailored to Business Needs: these agreements are individually negotiated based on the company’s circumstances, meaning they are highly adaptable to the employer’s specific needs and industry challenges. 
• Long-Term Workforce Solutions: with a company specific labour agreement, businesses can sponsor workers for both temporary roles and long-term positions, often including pathways to permanent residency. This fosters workforce stability and retention of key staff.

Which visas are available under this stream? 

Company Specific Labour Agreements are generally in effect for five years and provide for visas to be granted under one or more of the following visa programs: 

• Temporary Skill Shortage (TSS) visa (subclass 482)
• Employer Nomination Scheme visa (subclass 186) 
• Skilled Employer Sponsored Regional (Provisional) visa (subclass 494)

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What do you need to demonstrate?

Employers seeking a company specific labour agreement must submit a detailed proposal to the Department of Home Affairs, outlining their recruitment challenges and why a tailored agreement is necessary. Once approved, the agreement is valid for up to five years, during which the employer can sponsor overseas workers under the agreed terms. A company may vary this labour agreement during the five-year period by submitting a new request to vary the terms. 

There are several key requirements to be eligible to request a Company Specific Labour Agreement (CSLA), which will be discussed below:

• ‍Demonstrate you have a genuine labour market need

You must show the Department that you have an exceptional need that cannot be met by any Australian workers. This requires providing the Department with evidence of the niche skills you seek from overseas, of your many and diverse recruitment efforts and showing a detailed job description including tasks

• ‍Demonstrate you are seeking to fill skilled positions 

The positions must be at the Australian and New Zealand Standard Classification of Occupations (ANZSCO) occupation skill level 1 to 4. For businesses located in Category 3 regional areas of Australia, consideration may be given to positions equivalent to ANZSCO skill level​ 5 in exceptional situations. Skilled overseas workers generally must​ meet the ANZSCO skill requirements for that occupation and meet any industry registration or licensing requirements. 

Concessions to Standard Eligibility Requirements 

Concessions to standard visa eligibility requirements such as language proficiency, salary and work experience for the Temporary Skill Shortage visa (subclass 482) and Skilled Employer Sponsored Regional (Provisional) visa (subclass 494)​ may be requested in a company-specific labour agreement business case. 

You must give strong reasons as to why any requested concessions to standard visa criteria should be applied. We will not apply concessions if they create inconsistent employment conditions and salary requirements between overseas workers and Australians in equivalent roles.‍

• ‍Demonstrate your workforce needs

The company-specific labour agreement is a temporary solution only. You must show that the workers from overseas will not be more than one-third of your total workforce and you have a plan in place to train and employ Australians so you do not need a future labour agreement. 

• ‍Consult with industry stakeholders

You must consult with all relevant stakeholders, which may include the industry body, the relevant union and any community group the agreement impacts, such as schools or health services. 

Stakeholders should be given 10 working days to respond. If there is no response follow up and provide a further 5 working days for a response. Provide detailed information on your stakeholder consultation when you lodge your labour agreement request.

• ‍Be an Australian Business with Good Standing

You must be an Australian registered business with good standing. As such you must be able to show that your business has been lawfully operating in Australia for at least 1 year, be financially viable, not have committed any offences in Australia and consistently provided correct information to authorities.

Concerns of the Department of Home Affairs 

The Department is focused on ensuring that the labour agreement does not undermine employment or training opportunities for Australian workers. As part of the assessment process, the Department will review the business's reliance on overseas workers and evaluate whether the employer has outlined steps to reduce this reliance over the term of the proposed agreement.

Specifically, the Department looks at whether the employer views the labour agreement as a temporary solution, aimed at transferring skills to the Australian workforce and ultimately benefiting the Australian community and economy. If the application suggests an ongoing dependence on the agreement with no clear plan to train Australians and meet future labour needs locally, the application is unlikely to satisfy this requirement.

Frequently asked wuestions 

• Which businesses can apply for a Company Specific Labour Agreement? 

Any business that faces a unique or critical labour shortage, has been unable to fill positions through local recruitment efforts, and requires occupations not covered by standard visa programs can apply, provided they meet the eligibility requirements.

• How long is a Company Specific Labour Agreement valid? 

A Company Specific Labour Agreement is typically valid for up to five years, allowing the business to sponsor overseas workers during this period under the agreed terms and conditions.

• Are there any pathways to permanent residency? 

Yes, Company Specific Labour Agreements can offer pathways to permanent residency for eligible workers, depending on the terms agreed upon in the negotiation.

• What are the English language requirements? 

Workers from overseas must meet the English language requirements of the short-term stream of the Temporary Skill Shortage visa (subclass 482) 

• What evidence of local recruitment efforts is required? 

Employers must provide evidence of genuine attempts to recruit Australian workers, such as advertising positions locally, using recruitment agencies, or job boards. Labour market testing reports detailing the lack of suitable candidates are typically required.

• Are there any restrictions on the number of workers a company can sponsor under the agreement?

There is no specific limit on the number of workers a company can sponsor, but the number of positions requested must be justified by the company’s labour needs and supported by evidence of ongoing shortages.

Conclusion 

Company Specific Labour Agreements provide a valuable solution for businesses facing unique or highly specific labour shortages that cannot be addressed through standard migration programs. These agreements offer customised visa conditions and concessions, making it easier for businesses to sponsor overseas workers for both temporary and permanent roles. However, the application process is complex, requiring evidence of local recruitment efforts, clear documentation of the business’s labour needs, and a demonstrated commitment to training the local workforce.