On-hire labour agreements: sponsored workers placed through a provider

How it works

Standard sponsorship does not generally allow a sponsor to on-hire its visa holders to other businesses. An on-hire labour agreement is the Home Affairs pathway that allows it. The agreement is made between the Department and the on-hire provider. Accelerate Workforce Solutions has a current On-Hire Labour Agreement and is therefore authorised to on-hire SID 482 visa holders.

Under the current Home Affairs template, workers are sponsored on the SID 482 visa only. Nominees need at least two years of relevant work experience on top of the occupation's usual requirements, and there are no English language concessions. Pay must be at least 20% above the Core Skills Income Threshold (CSIT) for a 38 hour week, and no less than an Australian doing equivalent work at the same location would receive. Labour market testing evidence must accompany each nomination.

The provider must hold a contract with each host (client) business. That contract must require the host to keep its workplace compliant with Commonwealth and state workplace laws and to give the Commonwealth access to its premises for monitoring. The provider must monitor workplace compliance at the host, cannot place workers with a sanctioned sponsor, and cannot bench workers (stand them down without pay or put them on leave because there is no assignment) without the Department's prior agreement.

Who it affects

• Businesses that need skilled overseas workers but do not hold, or do not want to hold, their own sponsorship approval.
• Recruitment agencies that want to place visa holders with clients, which they generally cannot do under standard sponsorship.
• On-hire providers that hold an agreement, who carry the employer and sponsor obligations for every worker they place.
• Overseas workers on the SID 482 visa who are employed by the provider and work on site at a host business.

What to do

• Ask the provider to confirm it holds a current on-hire labour agreement and has room under its nomination cap for your roles.
• Check the role is an occupation the agreement covers and that the worker has at least two years of relevant experience.
• Confirm the proposed pay is at least 20% above CSIT and matches what an Australian in the same role at your site earns.
• Read the client contract: you will be asked to keep your workplace compliant and allow the Commonwealth on site for monitoring.
• Plan for continuity of work, because the provider cannot bench sponsored workers between assignments without Department approval.
• Check whether the provider holds any labour hire licence your state requires, which is a separate obligation.