Construction and Infrastructure Labour Agreements: Sponsoring Overseas Construction Workers

Is there a construction industry labour agreement?

No. Construction and infrastructure is not among the sectors for which the Department of Home Affairs has published an industry template labour agreement. The current published industry agreements cover sectors including advertising, aged care, dairy, fishing, horticulture, meat, and pork. Construction does not appear on this list.

This is an important point for any builder or contractor who has encountered references to a “construction labour agreement” online. While it is accurate to say that a construction company can obtain a labour agreement, that agreement will be either a company-specific arrangement negotiated directly with the Department of Home Affairs, a project agreement for qualifying large-scale projects, or a DAMA where the business is in a designated regional area. There is no industry template that a construction company can join by demonstrating membership of an industry body.

For a broader overview of how the different types of labour agreements operate, see our Labour Agreements page.

Your routes to sponsor construction workers

The most appropriate pathway for a construction employer depends on the scale and nature of the project, the occupation, the salary being offered, and whether the work is in a regional area. Several distinct options exist and each suits different circumstances.

Project agreements for major infrastructure projects

A project agreement is a distinct type of labour agreement available to project companies experiencing genuine skills shortages during the construction phase of large-scale resource or infrastructure projects. It is also available to project companies with projects endorsed by the Department of Foreign Affairs and Trade (DFAT) under the China-Australia Investment Facilitation Arrangement, and to large-scale activities where multiple sub-contractors have a genuine labour agreement need.

The structure is two-tiered. The project company first negotiates an overarching deed of agreement with the Department of Home Affairs, setting out the occupations, terms, and conditions under which the project can operate. Individual employers working on the project can then negotiate their own labour agreements under that overarching deed, without each needing to conduct a full standalone negotiation.

Project agreements are specifically designed for the construction phase. Workers’ visas are often linked to the project, which means that early project completion or significant scope changes can affect visa status. This risk should be addressed in workforce planning from the outset, and employers and workers should seek advice promptly if the project timeline changes materially.

Construction occupations commonly sponsored

The occupations a construction employer can sponsor depend on the pathway being used. Where the occupation appears on the Core Skills Occupation List (CSOL) and the salary meets the applicable income threshold, standard Skills in Demand visa sponsorship may be available without a labour agreement. Where it does not, a labour agreement or DAMA becomes the relevant mechanism.

Visa options for construction workers

Concessions you can negotiate

A labour agreement becomes most valuable when an employer can demonstrate that standard sponsorship requirements create a genuine barrier that the project circumstances justify. Concessions are not automatic and must each be supported by specific evidence approved by the Department of Home Affairs during negotiation.

Requirements for construction employers

To request a company-specific or project labour agreement, the employer must satisfy the following conditions under the Migration Act 1958 (Cth) and Migration Regulations 1994 (Cth).

• The business must have been lawfully and actively operating in Australia for the previous 12 months and must be financially viable, evidenced by a statement from a chartered or certified practising accountant. Businesses with adverse compliance histories, including findings under workplace health and safety legislation, industrial relations law, or previous migration sponsorship monitoring, will face heightened scrutiny.
• The employer must demonstrate a genuine shortage of suitably qualified local workers for the nominated positions. Evidence of recent, genuine local recruitment attempts is required, including copies of job advertisements. The Department of Home Affairs will not proceed with a request submitted without this evidence.
• Evidence of local recruitment effort must be provided with the labour agreement request. The standard required generally mirrors the labour market testing requirements for the standard Skills in Demand visa program, with concessions available for Category 2 and 3 regional businesses. For subsequent nominations lodged under an executed agreement, the labour market testing requirements applicable to those nominations are governed by the terms of the executed agreement, which may differ from the standard program requirements.
• Sponsored workers must be paid at the market salary rate for the role, consistent with the Building and Construction General On-site Award 2020 (MA000020) or any applicable enterprise agreement. On major projects, enterprise agreements commonly set rates well above the award floor.
• The employer must demonstrate a plan to reduce reliance on overseas labour over the term of the agreement, including how it will develop its Australian workforce. In line with the Department of Home Affairs’ published position for company-specific labour agreements, overseas workers must not comprise more than one-third of the total workforce. The executed agreement’s terms and any applicable current guidance from the Department of Home Affairs govern how this requirement applies to the employer’s specific circumstances.
• Stakeholder consultation with the relevant industry body and applicable union must be completed and documented before the request is submitted to the Department of Home Affairs.
• The Skilling Australians Fund (SAF) levy is payable at each nomination stage.

Requirements for overseas construction workers

Overseas construction workers seeking to be sponsored under a labour agreement must satisfy the requirements set by both the visa program and the executed agreement.

• A positive skills assessment from the designated assessing authority for the nominated occupation is required where the visa program mandates one. For most trade occupations, this is TRA. For engineering roles such as Civil Engineer, it is Engineers Australia. For Construction Project Manager (ANZSCO 133111), it is VETASSESS. Workers should confirm the correct assessing authority and program for their specific occupation and visa pathway before lodging an assessment application.
• The worker must demonstrate English language proficiency at the level required under the agreement, which may be the standard requirement or a negotiated concession.
• All workers must meet the health and character requirements under the Migration Act 1958 (Cth).
• Workers nominated for licensed trade occupations must obtain the relevant state or territory trade licence before commencing licensed work in Australia. Licensing requirements differ by state and territory and are entirely separate from visa grant.
• All workers on Australian construction sites must hold a current White Card. This requires completing an approved General Construction Induction Training course through a registered training organisation. The White Card is nationally recognised and valid across all Australian states and territories. It is a condition of lawful employment on construction sites, not a condition of visa grant.

How to get a construction labour agreement

1. 1

   Assess your route

   Before preparing any documentation, establish which pathway is most appropriate for your project and workforce. The assessment depends on your business location, the occupation, the salary, whether your project qualifies for a project agreement, and whether you are in a DAMA area. Our migration lawyers can complete this assessment and advise on the most efficient route given your project timeline.

2. 2

   Gather evidence of local recruitment

   Evidence of genuine local recruitment effort is required before lodging a labour agreement request. Advertise the position through appropriate channels, document all outcomes, and retain the evidence in a form that can be submitted with the request. For nominations lodged under an executed agreement, the labour market testing requirements that apply to those nominations are governed by the terms of the executed agreement. Some concessions to standard labour market testing requirements are available for businesses in Category 2 and 3 regional areas.

3. 3

   Prepare and lodge the request

   For a company-specific agreement, prepare and lodge the formal request through ImmiAccount. The submission must include the basis for the agreement, the nominated occupations, proposed salary and conditions, evidence of genuine workforce need, documentation of local recruitment efforts, any concession requests with supporting justification, and the outcomes of stakeholder consultation with the relevant industry body and applicable union.

   For a project agreement, the project company first negotiates the overarching deed with the Department of Home Affairs. Individual employers on the project can then apply for their own agreements under that deed.

4. 4

   Agreement negotiated and executed

   The Department of Home Affairs reviews the submission and, if satisfied, negotiates and executes the agreement. Once executed, the agreement specifies the terms under which nominations can be lodged, including any labour market testing requirements that apply to individual nominations. The Department does not publish processing timeframes for labour agreement requests.

5. 5

   Lodge nominations and visa applications

   After the agreement is in place, the employer lodges nominations for each overseas worker under the applicable visa stream. Once a nomination is approved, the worker lodges their visa application. The SAF levy is payable by the employer at each nomination.

Obligations after approval

Holding a company-specific or project labour agreement carries ongoing obligations in addition to the standard duties of an approved sponsor under the Migration Act 1958 (Cth) and Migration Regulations 1994 (Cth).

• Employers must pay each sponsored worker at the agreed salary rate and must not reduce conditions below what was approved. Accurate employment records must be maintained and made available to the Department of Home Affairs upon request.

• Any material change to the worker’s employment arrangements or to the business that affects compliance with the agreement must be reported to the Department of Home Affairs.

• Overseas workers must not comprise more than one-third of the total workforce, and reliance on overseas labour must decrease over the life of the agreement. The executed agreement’s terms and any applicable current guidance from the Department of Home Affairs govern how this requirement applies in practice.

• For project agreements, workers’ visas are often linked to the project. If the project concludes ahead of schedule or undergoes significant scope changes, workers’ visa status may be affected. Employers and workers should seek advice as soon as early completion becomes likely.

• Employers must ensure that all sponsored workers hold the required licences and certifications for their role, including state or territory trade licences for licensed trades and a current White Card for all site workers.

Common mistakes construction employers make

Information for overseas construction workers

Overseas construction workers cannot initiate a visa application under a labour agreement independently. The arrangement must be held by an Australian employer, who initiates the process, negotiates the agreement, and lodges the nomination. Only after the nomination is approved can the worker lodge their visa application.

If you are an overseas construction professional exploring whether an Australian employer could sponsor you, it is worth confirming whether the occupation appears on the CSOL for standard sponsorship, whether a prospective employer holds an existing labour agreement, and whether your qualifications have been or can be assessed by TRA, Engineers Australia, or VETASSESS depending on your occupation. Permanent residence may be available through the Subclass 186 Labour Agreement stream after meeting the agreed employment and service conditions, or through the Subclass 191 regional pathway for workers on a Subclass 494 visa. Our migration lawyers can advise on the visa options and skills assessment requirements for your specific occupation.

How our migration lawyers can help