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A Quick Guide to Labour Agreements and How These Fit into the Medical Industry

Updated: Apr 9


We have had ALOT of questions lately about Designated Area Migration Agreements (DAMAs) and Labour Agreements. Mainly these are from doctors looking to get around certain criteria such as sitting English tests, waiting for 2 years to apply for PR if you are over 45 etc. So, I thought I would write up a quick 101 about what these are and how these might fit into migration for the medical industry.


So, what is a Labour Agreement?


A labour agreement is basically a deal between a business and the Australian Government. It allows a business to sponsor skilled overseas workers when they can't find the right talent locally. The fundamental point of a Labour Agreement is to open up visa avenues for employers that would not normally be accessible for eligibility reasons (i.e. the English level is too high for lower skilled occupations, lowering skill levels, the standard income for that occupation is less than the levels accepted by the Department etc. These agreements usually last for five years and can be linked to several visa programs, including:


  • Skills In Demand (SID) visa – Subclass 482

  • Employer Nomination Scheme – Subclass 186

  • Skilled Employer Sponsored Regional visa – Subclass 494


Different Types of Labour Agreements


Not every business is the same, so these agreements are tailored to suit different needs.


There are five main types:


  1. Industry labour agreements

  2. Company-specific agreements

  3. Designated Area Migration Agreements (DAMAs)

  4. Project agreements

  5. Global Talent Scheme (GTS) agreements


The first three are the most common, so we’ll focus on those.


1. Industry Labour Agreements – Sector-Specific Solutions


When a company operates within an industry governed by a labor agreement, its own agreement, once approved, will align with the stipulations outlined in the industry-wide agreement. The company is not permitted to request special treatment or exceptions, as these matters have already been addressed during the formulation of the industry-wide labor agreement.


Industries with existing labour agreements include:


  • Aged Care – The Aged Care Industry Labour Agreement allows Australian Aged Care providers to access concessions to recruit overseas professionals to work in the following occupations:

    • Nursing Support Worker (ANZSCO 423312)

    • Personal Care Assistant (ANZSCO 423313)

    • Aged or Disabled Carer (ANZSCO 423111)


  • On-hire – For companies supplying skilled workers to third parties (you must remain the direct employer).


  • Premium Dining – For high-end restaurants hiring under the following occupations:

    • Chef (ANZSCO 351311)

    • Cook (ANZSCO 351411)

    • Café or Restaurant Manager (ANZSCO 141111)

    • Trade Waiter - encompasses several specialised roles/titles including but not limited to Sommelier, Maître D etc.


  • Horticulture, Dairy, Fishing, Meat, Pork – Each with terms based on the location and visa subclass.


  • Advertising – Covers five specific creative roles (you’ll need endorsements from industry bodies).


  • Minister of Religion – For religious roles, including a pathway to permanent residency.


Under policy if your industry already has an existing agreement in place, you cannot request a different one (like a company-specific agreement) unless individually requested and granted by the Minister.


2. Company-Specific Labour Agreements – Custom Tailored


These are for exceptional circumstances where a business has very specific skill needs that can’t be met locally and aren’t covered under existing programs.


What do you need to show?

  • A real skills shortage – You’ll need solid evidence of your recruitment efforts and job details.

  • Qualified overseas workers – They need to meet skill level and licensing requirements.

  • Workforce planning – Overseas staff should make up no more than one-third of your workforce, and you’ll need a plan to train local talent.

  • Good business standing – Your business must be financially stable, legally operating for over 12 months, and have a clean record.

  • Stakeholder consultation – That includes unions, industry bodies, and possibly local community groups.

  • Salary Requirements: You’ll need to pay salaries that match the local market (at least $73,150 (increasing to $76,515 from 01 July 2025) unless you can justify otherwise) and prove it with contracts, job ads, or market data.

Tip: If you’re hiring just one or two high-earning overseas workers (earning $162k+), you might not need to go through all the consultation steps.

3. DAMAs – Helping Regional Areas Thrive


So, what is a DAMA (Designated Area Migration Agreement)? 

Think of a DAMA as a special deal between the Australian Government and regional areas that are struggling to find enough local workers. It gives those areas more flexibility to bring in skilled workers from overseas—especially for jobs that aren’t always covered under the usual migration programs.

Here’s how it works:


It’s a two-part system:

  1. First, the Government signs a big-picture agreement (kind of like a five-year plan) with a local body—this could be a Chamber of Commerce, RDA office, or a local council.

  2. Then, individual employers in that region can apply for their own labour agreements under that plan.


These regional agreements include a list of occupations and allow for some relaxed visa rules—like age limits, English requirements, or salary thresholds—depending on what the region needs.


Once the big agreement is in place, local businesses can apply for their own DAMA labour agreements. These are valid for five years and let them sponsor overseas workers through visas like the:

  • 🧳 482 Skills In Demand

  • 🌄 494 Skilled Employer Sponsored Regional

  • 🏡 186 Employer Nominated Scheme


But before applying, businesses have to get the green light (called an endorsement) from the regional representative body.


Also, to be eligible, employers need to show they’ve genuinely tried to hire Australians first. DAMAs are about filling real gaps—not skipping the local talent pool.


These regional bodies don’t just sign off and disappear—they stay involved by checking in each year, reviewing how things are going, and helping businesses understand what’s possible under the DAMA.


So basically, DAMAs are all about helping regional Australia get the workers it needs, while still keeping things fair and community-focused.


Where are DAMAs available?

There are 13 DAMAs across Australia, including:


How Can a Migration Agent Help?


These agreements are complex. A registered migration agent can guide you through:


  • Picking the right agreement type for your business

  • Prepping and lodging your application

  • Negotiating terms (if applicable)

  • Making sure you stay compliant

  • Helping with nomination and visa applications for your workers


Immigration policies provide comprehensive guidelines that organizations must follow to obtain Labour Agreement approval. Although not legally binding, these policies serve as a useful reference for how the Department is anticipated to interpret and apply migration provisions for every application. Registered Migration Agents have access to and use these policies to assess and advise on eligibility as well as provide guidance to businesses through the application process. This is a very complex environment to navigate alone!


Applying for a Labour Agreement – Step by Step


  1. Submit a request via ImmiAccount (no fee, but processing can take up to 6 months).

  2. Provide supporting documents to show you meet the criteria.

  3. Review and sign the proposed agreement if your application is approved.


What Happens After Approval?


Once your agreement is in place:

  • You’ll need to submit a nomination for each overseas worker.

  • The nominated occupation must match what's allowed under your agreement.

  • For permanent visa pathways, make sure your agreement includes this option.

  • Workers then apply for their own visas, meeting the visa subclass requirements.


So What does all of this mean in the context of Medical Professionals?


Labour Agreements and DAMAs are time consuming and expensive (high Migration Agent fees due to the complexity and level of work involved) and are therefore not usually the best option for Medical Professionals. The eligibility levels set under the skilled migration programs are generally met due to the higher thresholds imposed by AHPRA and age exemptions are available for applying for PR. Therefore, it is usually highly unlikely that a business would be eligible for a Labour Agreement.


My advice for those trying to get around attainable eligibility criteria such as sitting an English test or waiting 2 years before applying for PR is that there may just not be another option.


Got Questions or Need Help?


Although not common place within the medical industry, there is absolutely times where a Labour Agreement or DAMA might be the best option. Contact us to explore whether this might be suitable to your circumstances or with any questions at all!





 
 
 

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Kellee Lloyd 

MARN 1678 793

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