In March this year, the Australian Government introduced the Temporary Skill Shortage (TSS) sub-class 482 visa. These replaced 457 visas that allowed people to work in Australia temporarily. Under the new laws, some companies can hold an on-hire labour agreement. Bayside Group and Techstaff both hold an on-hire labour agreement.

What is an on-hire labour agreement?

An on-hire labour agreement lets a company sponsor people from overseas to work in Australia temporarily and then on-hire them to work for other organisations. This means they can employ people who have specific skills that are in short supply in Australia, like engineering skills for the automotive industry, and contract them to work for other organisations. The workers remain the employees of the company that sponsors them into Australia.

Under an on-hire labour agreement, people come under a TSS visa. All workers must meet minimum English language requirements and have the necessary skills, qualifications and experience to complete the work required. Workers brought in under an on-hire labour agreement must also be:

• Employed full-time in Australia.
• Paid by the company that sponsors them, but they can be contracted out to another company.
• Paid a salary that is equivalent to what an Australian would receive for the same work and cannot be less than $65,000 per annum. The actual contract can be based on a daily rate or a fixed salary as long as it meets these minimum requirements and the conditions of the visa.

What are the advantages of on-hire labour agreements?

By partnering with a company that has an on-hire labour agreement, businesses can access talent overseas. This is particularly helpful if it is difficult to source the skills and expertise required locally. Perhaps a business needs people who have experience working with new automotive technologies or have worked in specific scientific areas. Workers can come in for up to four years depending on their skills and position.

Some companies find this type of arrangement particularly useful if they do not meet some of the legal requirements to directly sponsor a worker from overseas. For example, a company must have an annual turnover of over $1 million or more than five employees to sponsor a skilled worker from overseas. Other companies find it easier to manage workers on a contract rather than employing them directly. Working with a company that has an on-hire labour agreement lets them find the labour they need.

If you’d like to know more about how you can leverage our on-hire labour agreements to find the right talent for your business, get in touch.