A company specific labour agreement is the option employers reach for when nothing else fits. It is also the option the Department is most reluctant to grant, and the reason is written into the eligibility test itself.
Before you spend time on one, it is worth understanding that the Department describes a company specific labour agreement as a temporary solution only, and expects you to prove that no easier pathway is open to you.
When a company specific agreement is even available
The Department sets out three conditions. A company specific labour agreement is for an employer where:
- a genuine skills need is not already covered by an industry labour agreement
- a Designated Area Migration Agreement or project agreement is not in place
- the occupations in shortage are not already available under the standard skilled visa programs, unless a strong and compelling business case has been provided
It then states the point plainly: a company specific labour agreement should not be considered if you can use the standard skilled visa programs, or if you are covered by an Industry Labour Agreement or a Designated Area Migration Agreement.
That ordering is the whole strategy. Rule out the standard program, then the industry agreements, then the regional agreements, and only then build a company specific case.
Proving the skills need
You must show an exceptional need that cannot be met by Australian workers, and the evidence the Department asks for is specific:
- the niche skills you are seeking from overseas
- your many and diverse recruitment efforts
- a detailed job description including tasks
Positions must sit at ANZSCO skill level 1 to 4. For businesses in Category 3 regional areas, positions equivalent to skill level 5 may be considered in exceptional situations. Skilled overseas workers generally must meet the ANZSCO skill requirements for the occupation and any industry registration or licensing requirements.
The workforce tests that decide most requests
Two requirements do more to determine the outcome than anything else in the file.
The one-third rule. You must show that workers from overseas will not be more than one-third of your total workforce. For a small business this is often the binding constraint, and it is arithmetic rather than argument. The Labour Agreement Guidelines contain further detail on how workforce caps apply by location category, so confirm which figure applies to your circumstances before relying on the headline.
The training plan. You must show you have a plan in place to train and employ Australians so that you do not need a future labour agreement. The Department is granting a bridge, not a permanent arrangement, and it wants to see the far side of it.
Overseas workers must also meet the English language requirements of the Skills in Demand visa unless a concession is agreed.
What the Department checks about your business
You must be an Australian registered business in good standing, and show:
- that the business has been lawfully and actively operating in Australia for at least 12 months
- financial viability, evidenced by a chartered or certified practising accountant
- that you can support the proposed number of overseas workers
- that there is no adverse information about your business
On that last point the bar is explicit. You must not have broken a law in any Australian jurisdiction, nor be under investigation for doing so, must not be insolvent, and must not have provided false or misleading information to any appropriate authority at any time.
Adverse information must be declared as part of the request, along with evidence explaining why the Department should disregard it. Declaring it and explaining it is a far better position than having it found.
Consultation is not optional
You must consult all relevant stakeholders, which may include the industry body, the relevant union, and any community group the agreement affects, such as schools or health services.
Stakeholders need to be given the number of overseas workers proposed in each year of the agreement and their occupations, the location of the workplace, the proposed salary and the relevant awards. A template consultation letter is available in the Labour Agreement Guidelines.
When you lodge, you must provide evidence that you engaged with industry and union stakeholders, any attempts to follow up on requests, evidence of responses received, and any changes you made in response to the consultation.
Silence from a stakeholder is not a dead end, but an absence of evidence that you tried is.
The concessions you can ask for
Concessions to standard visa eligibility may be requested in the business case, and may extend to English language, age where relevant, salary, and work experience.
Two constraints apply. The company specific agreement template sets out the example concessions that may be considered, and requests for greater concessions are unlikely to be approved. And the Department states it will not apply concessions if they create inconsistent employment conditions and salary requirements between overseas workers and Australians in equivalent roles.
You must give strong reasons for each concession requested. A general statement that the market is tight will not carry a concession.
Permanent residence
You can request a permanent residency pathway through the Employer Nomination Scheme, subclass 186. The subclass 494 also carries a permanent residency pathway, though that visa is only available to overseas workers employed in regionally located businesses.
How to lodge, and what happens next
Requests are lodged online using the Labour Agreement Request form in ImmiAccount, with supporting documents attached. The Department assesses requests case by case, and notes that processing times vary depending on whether the application was complete when lodged and how quickly you respond to requests for more information.
If the request is approved, the Department sends a labour agreement document for review and signature. Once all parties have signed and returned it, the agreement comes into effect when it is countersigned.
Full guidance is on the Department’s labour agreements step by step page and its company specific labour agreements page.
Frequently asked questions
How long does a labour agreement take to get?
The Department assesses requests case by case and does not publish a fixed service standard. The two variables it names are whether your request was complete when lodged and how quickly you respond to requests for further information.
Do we have to advertise before requesting a labour agreement?
You should gather evidence of labour market testing relevant to the vacancies you want to fill, and you must evidence many and diverse recruitment efforts as part of showing the skills need.
What if a union does not respond to our consultation?
Provide evidence that you engaged, any attempts to follow up, and any responses received. The requirement is that you consulted, and that you can show it.
Can we ask for a lower salary than the standard threshold?
Salary is one of the concessions that may be requested, but you must give strong reasons, and the Department will not apply a concession that creates inconsistent conditions between overseas workers and Australians in equivalent roles.
Can a brand new business get a labour agreement?
It is unlikely. You must show the business has been lawfully and actively operating in Australia for at least 12 months, along with evidence of financial viability from a qualified accountant.
Is a labour agreement permanent?
No. The Department describes a company specific labour agreement as a temporary solution only, and requires a plan to train and employ Australians so a future agreement is not needed.
A realistic next step
The requests that fail usually fail on one of two things: the business could have used an existing pathway, or the consultation evidence was thin. Both are fixable before lodgement and very difficult to fix afterwards. Our team advises Australian businesses on labour agreements and on which instrument actually fits, and you can book a consultation with our migration lawyers.
About the author: Tina Nematian is the Principal Lawyer at One Planet Migration Law. She is an Australian Legal Practitioner and a Registered Migration Agent (MARN), and has guided clients through partner, skilled, employer-sponsored, student, and humanitarian visa applications across Australia.
This article is general information only and does not constitute legal or migration advice. Visa rules change frequently and outcomes depend on individual circumstances. Speak with a registered migration lawyer or agent before making any application. Figures were current as of August 2026; always check immi.homeaffairs.gov.au before lodging.
