StirlingHenry

As advised in Stirling Henry's May 2011 Corporate Immigration Newsletter, the Australian Government is introducing Enterprise Migration Agreements (EMAs) to assist large scale resource projects with temporary labour solutions. Detailed information regarding EMAs and the process to lodge applications has just been released by the Australian Department of Immigration (DIAC). DIAC is now accepting EMA applications.

DIAC has advised:

"An EMA will be negotiated with either the project owner or prime contractor of a resources project. The EMA will act as an umbrella migration arrangement for the project.
EMAs are available to resource projects with capital expenditure of more than two billion dollars and with a peak workforce of more than 1500 workers.

The EMA will set out the number of overseas workers who can be engaged on the project, why they are required, and the training commitments that must be met by the project owner.
Contracting employers, with the endorsement of the EMA holder, will sign template labour agreements that sit under the EMA. This ensures that the direct employer of the workers will be responsible for the sponsorship obligations in relation to overseas workers."

EMAs are complex to negotiate and we recommend those firms considering an EMA seek professional advice. The main benefit associated with an EMA is that rather than the existing situation that requires each sub-contractor involved on a large project to negotiate their own labour agreement when semi-skilled labour is required, the bulk of the negotiation will now occur with the project owner or prime contractor. Once the EMA has been agreed sub-contractors will be permitted to sign up (and be assessed) for an individual labour agreement under the umbrella of the approved EMA.

Under an EMA, and the related umbrella labour agreements, occupations that are not eligible for the standard 457 visa program may be authorised as appropriate under the EMA in question assuming the project is able to justify a genuine need for that occupation and demonstrate the need cannot be satisfied from the Australian labour market.

It will take some time for an organisation to prepare to submit a EMA application. On lodgement DIAC has committed that the application will be processed within 3 months and for umbrella labour agreements to receive expedited processing. On approval the EMA will be valid for 5 years.

Detailed information on EMAs is available at http://www.immi.gov.au/skilled/enterprise-migration-agreements.htm.

Conclusion

It is clear that EMAs will only be applicable to a very limited number of companies in Australia. However, labour agreements under an approved EMA may be of interest to many companies currently involved engaged on large scale resource projects.

Stirling Henry are experts in immigration options for the resource sector and we invite any interested parties to contact Peter Snell on (02) 9279 0202 or peter.snell@stirlinghenry.com for further information.

Stirling Henry Global Migration
MARN: 9683856