In this guide
An employer can have a genuine workforce shortage and still find that the standard sponsored visa program does not fit the role, the location or the scale of recruitment required.
That does not automatically mean sponsorship is impossible. Labour Agreements and Designated Area Migration Agreements (DAMAs) can provide alternative pathways in defined circumstances. They are specialist options, not shortcuts. The business must be able to explain why the standard programs do not meet its needs, and why access to overseas workers is justified.
What is a Labour Agreement?
A Labour Agreement is a formal arrangement that allows an approved business to sponsor overseas workers under agreed terms, where there is a demonstrated need that cannot be met in the Australian labour market and the standard programs are not available or suitable.
The agreement can specify occupations and, where approved, particular concessions or settings. The terms available depend on the type of agreement and the evidence supporting it.
Types of Labour Agreement
The most relevant categories can include:
- industry Labour Agreements, with established terms for eligible employers in a defined industry
- company-specific Labour Agreements, negotiated for the needs of an individual business
- designated area arrangements, for endorsed employers operating in participating regions
The correct route depends on the industry, location, occupations and workforce model, and on whether an existing template or regional arrangement is available.
What is a DAMA?
A Designated Area Migration Agreement is an agreement between the Australian Government and a designated area representative, such as a state, territory or regional body.
A DAMA can give access to occupations or agreed settings designed for that region. An employer cannot simply apply for a “DAMA visa”. It generally needs to operate in the designated region, obtain the required endorsement and enter into the relevant labour agreement process before sponsoring a worker under the arrangement.
When should an employer investigate these pathways?
A Labour Agreement or DAMA may be worth assessing when:
- the role is not available under a standard occupation list
- the business needs to recruit several workers over time
- the role is located in a participating regional area
- an industry agreement covers the employer and the occupation
- the standard salary, skills or English settings do not reflect a recognised industry need
- the business can demonstrate persistent local recruitment difficulties
None of these factors guarantees access. They indicate that further assessment may be justified. If you are still working out whether the standard program fits, can my business sponsor an overseas worker? covers the two most common barriers.
What evidence may be required?
The employer may need to provide evidence about its business, workforce, recruitment efforts, financial position, proposed occupations, salary arrangements, consultation, and, where relevant, its plans to reduce reliance on overseas recruitment.
A company-specific request can require substantial preparation, because the business is asking the Government to agree to settings outside the standard program.
Why timing must be realistic
Labour Agreements are not last-minute recruitment tools. Endorsement, consultation, negotiation and approval can take time, and the business may still need to complete nominations and visa applications after the agreement is in place.
Investigate the option before a shortage becomes an operational emergency.
Aged care and other industry agreements
Industry Labour Agreements exist for specified sectors and have fixed terms. For example, aged care employers may have access to an industry arrangement where the employer and the occupation meet the current requirements. Our health and aged care page covers the questions providers most often raise.
An industry agreement does not remove the need to assess the employer, the position and the worker. Check the current templates and requirements when planning the matter.
Labour Agreements as workforce strategy
The strongest requests are built around a credible workforce plan rather than one urgent vacancy. The business should understand how many workers it needs, where they will work, the proposed occupations, its local recruitment activity, its training and retention plans, and how sponsored workers fit the broader workforce.
That planning also shows whether a standard visa such as the Skills in Demand (subclass 482), an industry agreement, a DAMA or a company-specific agreement is the most appropriate route to investigate.
Do not stop at the occupation list
If a role does not fit the standard program, the next step should be an informed assessment, not an immediate conclusion that sponsorship is impossible.
Stratton Migration Australia advises employers on standard sponsorship, industry and company-specific Labour Agreements, and DAMA pathways across the industries we support.
Employer Sponsorship Assessment – $550 + GST
This is specifically for employers considering sponsoring an existing worker or recruiting an overseas candidate.
Submit an initial enquiry so we can understand the assistance you require and advise which service may be appropriate. Tailored migration advice and eligibility assessments are provided through a paid consultation or assessment under a formal engagement.
Frequently asked questions
Is a DAMA a visa?
No. A Designated Area Migration Agreement is a framework agreement between the Australian Government and a regional representative. An employer in the region obtains endorsement and enters a labour agreement under it, and workers are then sponsored through an employer-sponsored visa pathway.
Can any business request a Labour Agreement?
Any business can explore one, but it will need to show a genuine and ongoing shortage that cannot be met locally or through the standard programs, and to evidence its operations, recruitment efforts and workforce planning. Industry and regional agreements also have their own eligibility settings.
What concessions can a Labour Agreement provide?
Depending on the agreement type and the evidence, a Labour Agreement can give access to occupations not available under the standard program and may include agreed settings on matters such as salary, English language, skills or age. Concessions are negotiated or set by the relevant template, not granted automatically.
How long does a Labour Agreement process take?
It varies. Endorsement, consultation, negotiation and approval can take considerably longer than a standard nomination, and nominations and visa applications still follow once the agreement is in place. Start investigating before the shortage becomes an operational emergency.
This article is general information about how Australian migration programs work, current as at 25 September 2026. It is not advice about your circumstances. Government fees, income thresholds, occupation lists and processing settings change regularly; check the current position with the Department of Home Affairs or a Registered Migration Agent before relying on it.
