Designated Area Migration Agreements Explained

by | Jan 30, 2023 | Student visa

Designated Area Migration Agreements Explained

You may try hiring people from abroad if you have trouble hiring locals for your company. You could be able to sponsor these employees through a labour agreement under a designated area migration agreement even if they might not be qualified for a work permit under the Temporary Skills Shortage (TSS) visa subclass 482 (medium to long-term or short-term streams) (DAMA). This page describes the existing DAMAs, the characteristics and requirements that are shared by all of these agreements, as well as the particular information from the most well-known DAMAs that you should be aware of.

What is a labour agreement and how does it function?

A labour agreement is a unique arrangement between an enterprise and the Department of Home Affairs that enables them to sponsor qualified foreign employees to fill positions for which there is no conventional visa track. An authorized agreement may make it possible for foreign employees to apply for employer-sponsored visas (more particularly, 482, 494, and 186) that, if accepted, will take the provisions of the Labour Agreement into account.

What is DAMA?

DAMAs function within a framework based on labour agreements. They provide certain specified regional areas latitude to adapt to their particular economic and labour market circumstances. A Designated Area Representative, the Australian Federal Government, and your company will all sign a DAMA (DAR). Regional organizations like Chambers of Commerce, RDA offices, or Shire Councils may be included in a DAR.

A two-tier framework underlies a DAMA. A DAMA “head agreement” between the Australian government and a particular DAR constitutes the first layer. The DAMA “head agreement,” which was negotiated between the parties, covers a number of vocations, agreed-upon terms, and modifications to the requirements for skilled visa eligibility. It is valid for five years.

Second Tier

An individual DAMA labour agreement between the Australian government and companies present in the DAR-approved territory is the second tier. The agreement, which has a five-year lifespan, is based on the DAMA “head agreement.” Employers may be sponsored through the following visa programs:

  • 482 TSS visa (stream for labour agreements);
  • 494 Regional Visa Sponsored by a Skilled Employer (Labour Agreement Stream); and
  • 186 visa for Employer Nominated Scheme (labour agreement stream).

The entire DAMA procedure for sponsoring a migrant worker is as follows.

  • A participating DAR’s endorsement of your company is required;
  • Afterwards, you can submit a labour agreement request online using Immi account;
  • Following that, you may nominate (186 visas) or sponsor (482 or 494 visas) foreign employees through certain visa programs under a labour agreement stream.

Typical DAMA Requirements

Regardless of whether DAMA governs your organization, there are a few standards you must meet before hiring an employee under it. You must demonstrate that you:

  • are in business continuously in the state or designated area; are financially stable;
  • have been doing business for at least a year in an eligible DAR region;
  • and have never had a history of failing to fulfill your responsibilities to workers.
  • if you can show that you cannot fill the post locally with Australian citizens or permanent residents, and
  • if you are aiming to hire foreign workers to perform full-time roles with tasks that correspond to one of the occupations on each DAMAs occupation list.
  • can provide international employees with terms and conditions of employment that are equivalent to those provided to Australian employees working in the area.

Common Key Benefits

There are various benefits to using a DAMA rather than the standard employer-sponsored visa streams available to you. For example, it:

  • gives specific occupations access to sponsorship (482 and 494 visas);
  • gives some professionals access to permanent residence (186 visas);
  • makes accommodations for English in some professions;
  • provides wage discounts for certain professions; and
  • enables you to create a five-year contract.

In fact, certain jobs will have lower English language proficiency requirements than those covered by the typical employer-sponsored visas. The Temporary Skilled Migration Income Threshold (TSMIT), which is now $53,900, will not apply to you when paying your foreign employee in particular DAMA jobs. However, a compelling business argument must be made in order to request this concession. Additionally, you must demonstrate that the promised wage is at least equal to what an Australian citizen may be paid for a similar position.

Permanent Residency (PR) for DAMA Applicants

A road to permanent residency is offered under the new Northern Territory Designated Area Migration Agreement (NT DAMA). After working with an NT DAMA-authorized employer for three years, individuals funded under the Skilled Employer Sponsored Regional (SESR) subclass 494 visa may be eligible for permanent residency under the Permanent Residence (Skilled Regional) subclass 191 visa. The permanent route through the subclass 191 visa does not need employers to sponsor employees.

Wrapping Up

Your company may decide to engage a potential employee via a DAMA if they are not eligible for one of the usual employer-sponsored visa schemes. More foreign employees have access to jobs thanks to these agreements than through the traditional skilled migration program. A wider choice of qualified jobs, potential routes to permanent residency, and the English proficiency, wage, and experience concessions that apply to particular occupations are among the main advantages of DAMAs for firms. Our knowledgeable immigration attorneys can help if you need assistance with non-disclosure agreements.

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