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On-Hire Labour Agreement: A Comprehensive Guide for Employers

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On-Hire Labour Agreement: A Guide for Employers

Are you a labour-hire company that wants to attract and retain skilled overseas workers?

In the dynamic landscape of employment, the On-Hire Labour Agreement provides a solution for employers seeking to sponsor skilled overseas workers on a temporary basis.

The On-Hire Labour Agreement allows employers to assign sponsored skilled overseas workers to work for a third party while maintaining their position as the direct employer.

In this comprehensive guide, we will explore the key requirements and considerations for employers who wish to utilise the On-Hire Labour Agreement.

Visa and Occupation

To participate in the On-Hire Labour Agreement, employers can sponsor skilled overseas workers on the Temporary Skill Shortage visa (subclass 482). The sponsored workers must be assigned to occupations listed in the eligible skilled occupations for the Temporary Skill Shortage visa 482 program. The sponsorship can extend for up to four years, providing employers with a flexible workforce solution.

Occupation Tasks and English Language

Employers must ensure that the sponsored overseas workers fulfil the tasks outlined in the Australian and New Zealand Standard Classification of Occupations (ANZSCO) position they are nominated for. Additionally, skilled overseas workers must meet the English language requirements of the short-term stream of the Temporary Skill Shortage visa (subclass 482). This ensures effective communication and integration within the workplace.

Skills, Qualifications, and Experience

To qualify for the On-Hire Labour Agreement in australia, skilled overseas workers must meet the necessary skills, qualifications, and experience requirements specified by the Temporary Skill Shortage visa (subclass 482). Employers should assess the suitability of the workers based on these criteria to ensure a competent and capable workforce.

Salary and Employment Conditions

Employers must employ skilled overseas workers on a full-time basis and directly provide their salary payments rather than through a third-party entity. The annual earnings for the workers, based on a standard 38-hour workweek, must not fall below AUD65,000. Additionally, the salary should be comparable to what an Australian worker in the same position and workplace would receive. This requirement ensures fair compensation for the sponsored workers.

Occupations, Nomination Ceilings, and Location

Under the On-Hire Industry Labour Agreement, approved sponsors have the ability to nominate occupations from the List of eligible skilled occupations for the Temporary Skill Shortage (TSS) 482 visa program at the time of lodging the nomination application. The agreement specifies the annual Nomination Ceilings and the location of work for the nominated positions.

It is important to note that the Minister holds the authority to modify the ceiling numbers and occupations at any time, subject to annual review. Only Nomination Ceilings for Years 1 to 3 will be agreed upon during the execution of the Agreement. If an approved sponsor wishes to increase the ceilings specified above, they must seek a variation to the Agreement.

Concession to Occupation Tasks

Under the On-hire Labour Agreement, there are no concessions granted to the tasks expected to be undertaken by the nominated workers. The tasks assigned to the workers must align with those outlined in the Australian and New Zealand Standard Classification of Occupations (ANZSCO).

Concessions Regarding Terms and Conditions of Employment

The approved sponsor must demonstrate through written evidence, in addition to the information prescribed in the Migration Regulations, the following terms and conditions of employment:

(a) The nominated worker will be engaged on a full-time basis.

(b) The nominated worker will be paid directly by the on-hire company and not by a third party.

(c) The annual earnings for the nominated worker, based on a 38-hour workweek, must not be less than:

(i) $65,000; and

(ii) what an Australian worker performing equivalent work in the approved sponsor’s workplace at the same location would receive on an annual basis.

Concessions Relating to Visa Criteria

Qualifications and Experience

Nominees must possess at least two (2) years of relevant work experience, in addition to the qualification and experience requirements specified in ANZSCO for the occupation.

English Language

No concessions are granted regarding the English language profici