A Labour Agreement is a formal arrangement between the Australian Government and an approved employer that allows sponsorship of overseas workers in occupations experiencing demonstrated labour shortages.
In the health and disability sector, Labour Agreements are designed to address critical workforce shortages in aged care, disability support, nursing support, and direct care roles.
Labour Agreements are negotiated with the Department of Home Affairs and operate under legally binding terms.
There are two primary types relevant to this sector:
- Industry Labour Agreements – sector-wide agreements with fixed terms and conditions.
- Company-specific Labour Agreements – negotiated directly with an individual employer to address unique workforce shortages.
Labour Agreements provide flexibility beyond standard employer-sponsored visa programs. They may allow sponsorship of occupations not available under the standard skilled occupation lists specified in legislative instruments, or provide concessions where local recruitment efforts have been unsuccessful.
The Aged Care Industry Labour Agreement
The Aged Care Industry Labour Agreement was introduced in 2023 to address acute staffing shortages in Australia’s aged care sector.
It applies to approved aged care providers delivering:
- Residential aged care services
- Home care services
A key feature of this agreement is mandatory consultation with relevant unions. Employers must enter into a Memorandum of Understanding with the applicable union or unions before accessing the agreement.
The Aged Care Industry Labour Agreement:
- Covers defined direct care occupations
- Allows access to temporary and permanent visa pathways
- Provides structured concessions where appropriate
- Establishes safeguards around wages and employment conditions
Why Labour Agreements Matter in Health and Disability Care
Australia faces ongoing workforce shortages in aged care, disability services, and nursing support roles.
Contributing factors include:
- An ageing population
- Increased demand for home-based and community care
- Difficulty attracting workers to rural and regional areas
- High turnover in direct care roles
Labour Agreements provide a structured framework for employers to sponsor overseas workers while maintaining regulatory compliance and workforce protections.
Employers must demonstrate:
- Ongoing labour shortages
- Genuine attempts to recruit from the domestic workforce
- Consultation with employees and unions (where required)
Benefits for Employers
Health and disability employers benefit from:
- Access to skilled overseas workers in high-demand roles
- Flexibility where occupations are not readily available under standard skilled visa programs
- Workforce stability through structured temporary and permanent residence pathways
- Assistance in meeting workforce planning and regulatory obligations
The Skills in Demand visa (subclass 482) is the primary temporary pathway used under these agreements.
Benefits for Workers
For overseas workers, Labour Agreements offer:
- Opportunity to work in Australia in a high-demand sector
- Structured employer sponsorship
- Protection of pay and employment conditions
- Access to permanent residence pathways
- Ability to include eligible family members
Under the Aged Care Industry Labour Agreement, workers may become eligible to apply for permanent residence through the Employer Nomination Scheme visa (subclass 186) after completing the required period of full-time employment in Australia.
Applicants for permanent residence must generally:
- Be under 45 years of age at the time of application (unless an exemption applies)
- Meet English language requirements
- Satisfy skills and employment duration requirements
Employer and Worker Requirements Under Labour Agreements
Employer Requirements
Majikan mesti:
- Demonstrate genuine labour shortages
- Operate lawfully in Australia
- Comply with workplace, remuneration, and safety laws
- Conduct labour market testing before sponsorship
- Enter into a Labour Agreement with the Department of Home Affairs
- Pay overseas workers directly
- Ensure earnings meet or exceed the applicable salary threshold
Under the Aged Care Industry Labour Agreement, salary requirements are aligned with sector wage standards and applicable migration income thresholds.
Worker Requirements
Workers must:
- Possess relevant qualifications and/or experience
- Meet English language requirements (unless concessions apply)
- Hold registration where required
For example, certain nursing roles require registration with the Australian Health Practitioner Regulation Agency.
Applicants must also satisfy health and character requirements under Australian migration law.
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Key Occupations Under Health and Disability Labour Agreements
Occupations must align with the Australian and New Zealand Standard Classification of Occupations.
Commonly included roles are:
Aged or Disabled Carer (Australian and New Zealand Standard Classification of Occupations 423111)
Provides direct personal care to elderly persons or individuals with disabilities.
Requires relevant qualifications or substantial experience.
Nursing Support Worker (Australian and New Zealand Standard Classification of Occupations 423312)
Provides basic nursing care under supervision in aged care, disability, or hospital settings. May require vocational qualifications and relevant work experience.
Personal Care Assistant (Australian and New Zealand Standard Classification of Occupations 423313)
Assists clients with daily living tasks including mobility, hygiene, and feeding support.
Formal training in aged or disability care may be required.
Additional allied health and disability support roles may be included depending on the specific Labour Agreement and demonstrated workforce need.
Visa Pathways Available
Kemahiran dalam Visa Permintaan (Subkelas 482)
The Skills in Demand visa (subclass 482) allows approved employers to sponsor overseas workers on a temporary basis.
Under a Labour Agreement stream:
- The occupation must be specified in the agreement
- Concessions to certain criteria may apply where negotiated
- Applicants must meet skills, English language, and experience requirements
Employer Nomination Scheme Visa (Subclass 186)
The Employer Nomination Scheme visa (subclass 186) provides a permanent residence pathway.
Under the Aged Care Industry Labour Agreement, eligible workers may apply after completing the required period of full-time employment in Australia in an approved occupation.
Applicants must satisfy:
- Age requirements (generally under 45 years)
- English language standards
- Ongoing employment and skill criteria
How the Labour Agreement Process Works
Step 1: Employer Negotiates a Labour Agreement
The employer:
- Identifies workforce shortages
- Prepares evidence of labour market testing
- Consults relevant unions (if required)
- Submits a Labour Agreement request to the Department of Home Affairs
Step 2: Agreement Approval
Once approved, the Labour Agreement sets out:
- Eligible occupations
- Visa subclasses available
- Salary requirements
- Concessions (if applicable)
- Compliance obligations
Step 3: Nomination Application
The employer lodges a nomination under the relevant visa subclass, commonly:
- Kemahiran dalam Permintaan visa (subkelas 482)
- visa Skim Penamaan Majikan (subkelas 186)
Step 4: Visa Application
The overseas worker lodges their visa application and must meet health, character, and skill requirements in force at the time of application.
Step 5: Permanent Residence (If Eligible)
Where applicable, workers may transition to permanent residence through the Employer Nomination Scheme visa (subclass 186), subject to:
- Required employment period
- Ongoing nomination
- Meeting legislative criteria
Current Trends (2025–2026)
- Sustained demand for aged care and disability support workers
- Continued reliance on Labour Agreements to stabilise workforce supply
- Greater regulatory scrutiny of wage compliance and employment conditions
- Increased emphasis on training and domestic workforce development
Labour Agreements remain central to workforce planning in the health and disability sector.
Common Challenges and Practical Tips
Challenge: Navigating complex negotiation and documentation requirements.
Tip: Engage experienced migration professionals early in the process.
Challenge: Meeting English language or qualification standards.
Tip: Ensure skills assessments and credential recognition processes are completed well before nomination.
Challenge: Retention in regional areas.
Tip: Provide structured onboarding, housing assistance, and professional development support.
Health and Disability Labour Agreements require careful planning, detailed evidence, and precise compliance management. Early strategic advice can significantly reduce risk and streamline approval timeframes.
Australian Migration Lawyers assists employers across Australia with Labour Agreement negotiations, visa nominations, and ongoing sponsorship compliance.
Speak with us today to discuss your Labour Agreement journey.
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Tempah Konsultasi
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Soalan Lazim
What does a Labour Agreement occupation list include?
It includes specific occupations approved under the agreement, typically aged care, disability care, nursing support, and allied health support roles. Each worker must be nominated under the correct occupational classification.
Apakah Perjanjian Buruh Industri Penjagaan Warga Tua?
It is a government-approved framework allowing aged care providers to sponsor overseas workers in approved direct care occupations where domestic recruitment is insufficient.
Berapa lama proses itu mengambil masa?
Negotiation and approval may take several months. Visa processing times vary depending on the visa subclass.
Can workers change employers?
Workers may change employers only if:
- The new employer is an approved sponsor under a relevant Labour Agreement, and
- A new nomination is lodged and approved
Is there a public list of approved employers?
Yes. The Department of Home Affairs maintains a publicly available list of approved Labour Agreement sponsors.
What is the age limit for permanent residence?
Applicants for the Employer Nomination Scheme visa (subclass 186) must generally be under 45 years of age at the time of application, unless an exemption applies under the specific Labour Agreement.
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