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A Labour Agreement is a formal, legally binding arrangement between an Australian employer and the Commonwealth Government that allows the sponsorship of overseas workers in circumstances where standard skilled migration programs are not suitable.
Labour Agreements are negotiated under the framework of the Migration Act 1958 (Cth) and the Migration Regulations 1994 (Cth). They enable approved employers to sponsor workers in specified occupations, often with bespoke concessions relating to English language, salary thresholds, age, or skill requirements.
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Under the Migration Act 1958, the Minister has the discretion to enter into Labour Agreements with employers where there is a demonstrated labour shortage and no suitable Australian workers are available. These agreements operate as an alternative to standard employer-sponsored visa programs.
A Labour Agreement sets out:
The Department of Home Affairs assesses:
Approval is discretionary and requires detailed supporting evidence.
A standard Subclass 482 Skills in Demand (SID) visa requires:
By contrast, a Labour Agreement may:
While fast food roles are often considered lower-skilled, certain management and specialist roles may qualify under Labour Agreements in circumstances of genuine labour shortages.
Regional fast food outlets may experience persistent recruitment difficulties due to ongoing labour shortages, particularly for:
In these circumstances, a Labour Agreement (often through a DAMA) may be explored.
Industry representative bodies will determine the terms of Industry Labour Agreements in negotiation with the department after demonstrating ongoing labour shortages.
The fast food sector experiences significant workforce mobility. Where long-term vacancies cannot be filled locally, employers may consider a Labour Agreement pathway.
If:
A Labour Agreement may provide a lawful alternative.
Negotiated directly between an individual fast food operator (or franchise group) and the Department of Home Affairs.
Typically appropriate for:
A DAMA is a regional Labour Agreement covering a specific geographic area. Many DAMAs include hospitality and food service occupations.
Fast food employers operating in regional Australia may access:
Currently, there is no specific national fast food industry-wide Labour Agreement. However, hospitality-related Industry Labour Agreements may be relevant in limited circumstances.
Under a Labour Agreement stream, employers may sponsor eligible temporary skilled workers temporarily where:
Visa application lodgement is a crucial step in this process, and visa applicants must meet all eligibility criteria set out in the relevant labour agreement.
The Employer Nomination Scheme visa (subclass 186) offers several pathways to permanent residency (PR) for skilled workers in the fast food industry, including the Labour Agreement stream and the direct entry stream. The direct entry stream allows skilled overseas workers to apply directly for permanent residence if they meet specific eligibility criteria and occupation requirements, without needing prior temporary stay or transitional processes.
The Labour Agreement stream of the Subclass 186 visa may provide a permanent residency pathway where:
Concessions may be negotiated case-by-case, including:
All concessions must still ensure that sponsored workers are not exploited and that Australian wages and conditions are protected.
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Labour Agreements impose strict legal obligations.
Any payments deducted from a skilled overseas worker’s salary must be made only with written permission and in compliance with Australia's legislation.
Employers must pay:
Overseas workers' earnings should be comparable to what an equivalent Australian worker in the same role would receive.
Underpayment can result in civil penalties and sponsorship cancellation.
Sponsored workers in fast food roles must receive conditions no less favourable than those provided under the Fast Food Industry Award 2020 (MA000003), including:
Employers must pay the Skilling Australians Fund (SAF) levy at nomination stage, calculated based on business turnover and visa duration.
Sponsors must:
Labour Agreements do not override Australian employment law.
All sponsored workers are entitled to the National Employment Standards, including:
The Fair Work Act 2009 (Cth) applies fully to sponsored employees. Breaches may result in:
The Fair Work Ombudsman monitors compliance with:
Migration sponsorship does not reduce these obligations.
Fast food employers should be aware of:
Non-compliance can result in:
You don't have to navigate this process alone. Our experienced lawyers can assess eligibility, prepare detailed workforce shortage evidence, negotiate agreement terms with the Department of Home Affairs, and manage visa nominations and applications. We also provide ongoing compliance advice to ensure adherence to migration law, the Fair Work Act 2009, the National Employment Standards, and the Fast Food Industry Award 2020, protecting both your business and your sponsored employees.
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It is a negotiated agreement allowing a fast food employer to sponsor overseas workers where standard visa pathways are not suitable and a genuine labour shortage exists.
No. There is currently no national industry-wide fast food Labour Agreement. Employers must apply under company-specific agreements or relevant DAMAs.
Yes, in certain circumstances. Roles such as Restaurant Manager or Cook may be approved where labour shortages are demonstrated and the occupation is included in the relevant agreement. Additionally, café or restaurant managers, retail managers, and retail supervisors may be eligible for sponsorship under a labour agreement, provided they have a relevant qualification.
Yes. Sponsored workers must receive at least the minimum conditions under the Fast Food Industry Award 2020 and the National Employment Standards.
Yes, concessions may be negotiated, particularly under DAMAs or regional agreements. However, they are assessed case-by-case and must comply with broader migration and employment law protections.
Breaches may result in:
Employers should seek legal advice immediately if compliance concerns arise.
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