An on-hire labour agreement permits a company to fund people from abroad for temporary work in Australia. Then they can on-hire them to work for the other organizations. This helps them to employ people who are skilled but short in supply in Australia. It can be engineering skills to work in the automotive industry. They can later be contracted to work for other organizations. The company that sponsors the workers in Australia have these workers as their employees.

Working of the agreement 

Under this agreement, people come to Australia under a TSS visa. The only requirements are that of the English language, necessary qualifications, skills and experience to get the work completed. Workers under this agreement should be:

  • Paid by the sponsor company
  • Full-time employment
  • Allowed to be contracted by any other company
  • Paid salary equivalent to an Australian citizen
  • Benefits of the agreement

Businesses can reach peaks by collaborating with a company that has an on-hire labour agreement. This can be of utmost help when you experience difficulty in finding the required skills and expertise locally. For a business to flourish, it needs people who are experienced enough to work with new automotive technologies or particular scientific areas. Depending on the skills and their position, workers can be employed through this agreement for a period of up to four years.

This kind of arrangement is particularly beneficial for companies that are unable to meet the legal requirements to sponsor a worker from overseas. To sponsor a worker from overseas, the company must have an annual turnover of more than $ 1 million or should have more than five employees. Some companies find managing the workers on a contract to be easier than employing the workers directly.

It is easier to work with a company that has an on-hire labour agreement. It lets them find the labour they need.

Advantages for the company 

Short hiring procedure The whole procedure of hiring a contract employee is much quicker and this is advantageous for the company.

Flexibility Another advantage of hiring a worker by an on-hire labour agreement is that they allow the company to respond accurately to the needs and demands of the market. This is the biggest advantage as it allows flexibility.

Reduced labour costs The company gets another advantage of reduced labour cost. The company won’t have to spend money on the development of skills and training of the labour. This will let them save money.

Skilled labours The labours are skilled enough to perform niche projects and they have all the specific skills to carry out the task. The company can drive its business forward if it has skilled labour who is accustomed to perform the work.

Instant results This is something that the company desires and expects from labour. They join for a short period only to give instant results to the company. The only requirement is that the company should introduce the worker with the whole team and make him aware of all that he is required to do.