Understanding On-Hire Labour Agreements
The On-Hire Labour Agreement is a crucial component of the industry’s labour agreements, allowing businesses to sponsor skilled overseas workers for temporary positions. These agreements enable employers to address specific labour shortages by assigning workers to third-party clients while retaining direct employment responsibility. For more details about labour agreements, you can also read our previous article: Everything About Labour Agreements.
Visa requirements for On-Hire Labour Agreements
Employers looking to utilise On-Hire Labour Agreements can sponsor skilled overseas workers under the Temporary Skill Shortage visa (subclass 482). This visa allows workers to fill positions listed on the eligible skilled occupations list, with sponsorships lasting up to four years.
Key occupation tasks and standards
Sponsored skilled overseas workers must perform tasks as outlined by the Australian and New Zealand Standard Classification of Occupations (ANZSCO) for the nominated position. Adherence to these standards ensures that the roles filled by overseas workers meet the required qualifications and experience levels.
Salary and compensation standards
Recent updates to the On-Hire Labour Agreements stipulate that annual earnings for skilled overseas workers must be at least 20% above the Temporary Skilled Migration Income Threshold (TSMIT). Additionally, the salary must not be less than what an Australian worker performing the same role would be paid. This ensures fair compensation and maintains equity within the workforce.
English language and skills requirements
Skilled overseas workers sponsored under On-Hire Labour Agreements must meet the English language requirements of the short-term stream of the Temporary Skill Shortage visa (subclass 482). They must also possess the necessary skills, qualifications, and experience pertinent to their occupation.
Importance of labour market testing
Employers must provide evidence of labour market testing when applying for an On-Hire Labour Agreement. This includes demonstrating efforts to recruit local workers before seeking overseas talent and providing signed contracts between the employer, the skilled overseas worker, and the third party where the worker will be placed.
Ensuring compliance with On-Hire Labour Agreements can significantly benefit your business by addressing critical labour shortages with skilled overseas workers.
For more information and assistance with the application process, please get in touch with our expert team at admin@absoluteimmigrationlegal.com to arrange an online consultation.