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 proficiency requirement for the nominated workers.
Visa Period
The length of the visa granted under the agreement will be determined based on the policy parameters of the standard temporary skilled visa program. Certain occupations may be eligible for a maximum visa period of two (2) years, while all other occupations on the list of eligible skilled occupations can have a maximum visa period of four (4) years.
Labour Market Testing and Contracts
As part of the application for the On-Hire Labour Agreement, employers must provide evidence of labour market testing. This demonstrates that efforts were made to find suitable Australian workers before seeking overseas sponsorship. Furthermore, employers are required to submit signed copies of contracts between themselves, the skilled overseas workers, and the third-party entity where the workers will be placed. These contracts outline the terms and conditions of employment, ensuring clarity and accountability for all parties involved.
Additional Requirements for Nomination
Labour Market Testing Requirements
When submitting nominations under the On-Hire Industry Labour Agreement, employers must provide evidence of labour market testing equivalent to the requirements of the standard temporary skilled visa program.
Employment Contract
The nomination application must be accompanied by a signed copy of the contract between the approved sponsor and the nominated worker, as well as the contract between the approved sponsor and the client organization regarding the nominated worker.
FAQs
What is the On-Hire Labour Agreement?
The On-Hire Labour Agreement is an agreement that allows employers to sponsor skilled overseas workers on a temporary basis while maintaining their position as the direct employer. It enables employers to assign these workers to work for a third party.
What visa can employers use to sponsor skilled overseas workers under the On-Hire Labour Agreement?
Employers can sponsor skilled overseas workers on the Temporary Skill Shortage visa (subclass 482).
Are there specific occupations that the sponsored workers must be assigned to?
Yes, the sponsored workers must be assigned to occupations listed in the eligible skilled occupations for the Temporary Skill Shortage visa program.
How long can the sponsorship under the On-Hire Labour Agreement last?
Yes, the sponsored workers must be assigned to occupations listed in the eligible skilled occupations for the Temporary Skill Shortage visa program.
How long can the sponsorship under the On-Hire Labour Agreement last?
The sponsorship can extend for up to four years, providing employers with a flexible workforce solution.
What are the English language requirements for the sponsored workers?
The 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.
What are the requirements for skills, qualifications, and experience for the sponsored workers?
Skilled overseas workers must meet the necessary skills, qualifications, and experience requirements specified by the Temporary Skill Shortage visa (subclass 482).
How should employers provide salary payments to sponsored workers?
Employers must employ skilled overseas workers on a full-time basis and directly provide their salary payments rather than through a third-party entity.
What are the minimum annual earnings for the sponsored workers?
The annual earnings for the workers, based on a standard 38-hour workweek, must not fall below AUD65,000.
Is labour market testing required for the On-Hire Labour Agreement?
Yes, employers must provide evidence of labour market testing as part of the application request and at the nomination stage. This demonstrates that efforts were made to find suitable Australian workers before seeking overseas sponsorship.
Are there specific contractual agreements that employers must submit?
Yes, employers must provide evidence of labour market testing as part of the application request and at the nomination stage. This demonstrates that efforts were made to find suitable Australian workers before seeking overseas sponsorship.
Are there specific contractual agreements that employers must submit?
Yes, employers are required to submit signed copies of contracts between themselves, the skilled overseas workers, and the third-party entity where the workers will be placed. These contracts outline the terms and conditions of employment.
What should employers consider when utilising the On-Hire Labour Agreement?
Employers should ensure compliance with all the requirements related to visa, occupation, English language proficiency, skills, qualifications, salary, labour market testing, and contractual agreements. It is advisable to consult with relevant immigration and legal professionals for detailed guidance specific to your situation.
Conclusion
The On-Hire Labour Agreement offers employers the opportunity to sponsor skilled overseas workers on a temporary basis while maintaining their position as the direct employer. By adhering to the requirements related to visa, occupation, English language proficiency, skills, qualifications, salary, labour market testing, and contractual agreements, employers can successfully leverage this agreement to address their workforce needs. It is crucial to navigate the process diligently, ensuring compliance and fair treatment of sponsored workers. The On-Hire Labour Agreement presents a valuable avenue for employers to access skilled talent and contribute to their organizational growth.
Please note that this guide provides a general overview of the On-Hire Labour Agreement, and it is advisable to consult with a Registered Migration Agent for detailed guidance specific to your situation.
