What is an on-hire labour agreement?
An on-hire labour agreement allows a company to be a surrogate sponsor to people from overseas who are wanting to work in Australia temporarily, and then on-hire them to work for other organisations. This means they can sponsor employees who have specific skills that are in short supply in Australia, on behalf of the other organisations. Some of these skills includes IT, engineering, technology, accountant etc. An on-hire labour company can then contract them to work for organisations that actually wants to hire them. However, the workers still remain the employees of the company that sponsors them into Australia.
Under an on-hire labour agreement, people come under a Temporary Skilled Shortage (TSS) 482 visa. All workers must meet minimum English language requirements and have 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 outsourced 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 AUD $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 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 instance, a company must have an annual turnover of over AUD $1 million or more 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 would like to know more about how you can benefit from our on-hire labour agreements to find the right talent for your business, talk to us…