Overview
Australia’s hospitality industry continues to experience significant shortages of suitably qualified and experienced staff, particularly in management and skilled kitchen positions.
The Subclass 482 Labour Agreement Stream allows eligible hospitality businesses to sponsor overseas workers where genuine labour shortages exist and Australian workers are not readily available.
A Labour Agreement is a formal agreement between an Australian employer and the Department of Home Affairs that allows the sponsorship of overseas workers under negotiated conditions. Depending on the circumstances, a Labour Agreement may provide concessions relating to occupations, English language requirements, qualifications, work experience requirements and pathways to permanent residence.
For hospitality businesses experiencing ongoing recruitment difficulties, a Labour Agreement can provide a practical and long-term workforce solution.
Who Can Apply?
Hospitality businesses may be eligible to enter into a Labour Agreement where they can demonstrate:
- Genuine labour shortages;
- Ongoing recruitment difficulties;
- Active recruitment of Australian workers;
- Financial capacity to employ overseas workers;
- Compliance with workplace laws; and
- A genuine need for skilled overseas personnel.
Examples of eligible businesses may include:
- Restaurants;
- Restaurant groups;
- Franchise operators;
- Hotels;
- Resorts;
- Cafes;
- Catering businesses;
- Hospitality management companies;
- Licensed clubs; and
- Tourism and hospitality operators.
Common Hospitality Occupations
Depending on the Labour Agreement, occupations may include:
1. Front of House and Management
- Restaurant Manager;
- Cafe Manager;
- Food and Beverage Manager;
- Hospitality Manager;
- Duty Manager;
- Venue Manager;
- Operations Manager.
2. Kitchen and Culinary Positions
- Chef;
- Sous Chef;
- Head Chef;
- Executive Chef;
- Cook;
- Pastry Chef;
- Specialty Cuisine Chef.
3. Other Hospitality Positions
- Trade Waiter;
- Restaurant Supervisor;
- Food and Beverage Supervisor; and
- Other approved hospitality occupations.
The occupations available will depend on the specific Labour Agreement approved by the Department of Home Affairs.
Why Hospitality Businesses Use Labour Agreements
Many hospitality employers face challenges recruiting suitably qualified staff due to:
- Industry-wide labour shortages;
- High staff turnover;
- Rapid business expansion;
- Regional workforce shortages;
- Demand for specialised cuisine experience;
- Multilingual customer service requirements; and
- Difficulties attracting experienced management personnel.
A Labour Agreement can provide access to a wider pool of skilled workers and support long-term workforce planning.
Employer Requirements
1. Genuine Labour Market Need
Employers must demonstrate that Australian citizens and permanent residents have been actively recruited before seeking overseas workers.
Evidence may include:
- SEEK advertisements;
- Recruitment agency reports;
- Social media recruitment campaigns;
- Industry advertising;
- Records of unsuccessful recruitment efforts; and
- Workforce shortage evidence.
2. Financial Capacity
The employer must demonstrate that the business is financially capable of employing overseas workers.
Documents commonly include:
- Financial statements;
- Company tax returns;
- BAS statements;
- Payroll reports;
- Organisation charts; and
- Business plans.
3. Workplace Compliance
The business must comply with:
- Fair Work legislation;
- Award obligations;
- Superannuation requirements;
- Taxation obligations;
- Workplace health and safety laws; and
- Migration sponsorship obligations.
Requirements for Sponsored Workers
Sponsored workers generally need to demonstrate:
1. Relevant Qualifications
Qualifications relevant to the nominated occupation.
Examples may include:
- Diploma of Hospitality Management;
- Advanced Diploma of Hospitality Management;
- Commercial Cookery qualifications;
- Hospitality Management degrees; or
- Equivalent overseas qualifications.
2. Relevant Employment Experience
Applicants will generally require relevant industry experience consistent with the nominated occupation.
For example:
Restaurant Managers
Typically responsible for:
- Managing restaurant operations;
- Staff recruitment and supervision;
- Rostering;
- Budget management;
- Customer service standards;
- Supplier management; and
- Business performance.
Chefs
Typically responsible for:
- Menu planning;
- Food preparation;
- Kitchen management;
- Staff supervision;
- Food safety compliance; and
- Stock control.
3. English Language Requirements
Applicants must satisfy the English language requirements specified under the Labour Agreement and visa regulations.
4. Health and Character Requirements
Applicants and accompanying family members must satisfy health and character requirements before visa grant.
5. Family Members
The visa applicant may include eligible family members in the visa application, including:
- Spouse or de facto partner; and
- Dependent children.
Eligible family members generally receive work and study rights in Australia.
Benefits of a Labour Agreement
A Labour Agreement can provide:
- Access to skilled overseas workers;
- Improved workforce stability;
- Reduced recruitment difficulties;
- Assistance with business expansion;
- Industry-specific concessions;
- Long-term succession planning; and
- Potential pathways to permanent residence.
Many hospitality groups use Labour Agreements as part of their long-term workforce strategy rather than relying solely on local recruitment.
Pathway to Permanent Residence
Many Labour Agreements provide a pathway to permanent residence through the Subclass 186 Employer Nomination Scheme Labour Agreement Stream.
Depending on the Labour Agreement, concessions may be available regarding:
- Age;
- English language requirements;
- Skills assessments; and
- Work experience requirements.
This pathway can assist employers to retain experienced staff while providing workers and their families with long-term settlement opportunities in Australia.
Typical Labour Agreement Process
Stage 1 – Labour Agreement Application
The employer negotiates a Labour Agreement with the Department of Home Affairs.
Stage 2 – Labour Agreement Approval
The Department assesses the business and determines whether a Labour Agreement should be granted.
Stage 3 – Nomination Application
The employer nominates an overseas worker under the approved Labour Agreement.
Stage 4 – Visa Application
The visa applicant lodges a Subclass 482 Labour Agreement Stream visa application.
Stage 5 – Visa Grant
Upon approval, the applicant and eligible family members may live, work and study in Australia.
How We Can Assist
Our Migration Services Team can assist with:
- Labour Agreement negotiations;
- Workforce planning and strategy;
- Occupation assessments;
- Sponsorship applications;
- Nomination applications;
- Subclass 482 visa applications;
- Permanent residence pathways; and
- Ongoing sponsorship compliance advice.
We regularly advise restaurants, hospitality groups, franchise operators and tourism businesses regarding workforce planning and employer-sponsored visa programmes.
Contact:
John Siong
Special Counsel
Tel: +61 7 3009 8412
Mobile: +61 (0)40166898
Email: j.siong@rclaw.com.au
Important Disclaimer: This information sheet provides general information only and does not constitute legal advice. Eligibility requirements vary depending on the circumstances of the employer, the occupation and the visa applicant. Specific legal advice should be obtained before proceeding with any Labour Agreement or visa application.
