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Hiring Trades Talent in Australia: Legal Basics You Need to Know

Australia’s trades sector is under pressure. From construction and plumbing to welding, logistics, and electrical work, employers are grappling with serious skills shortages. Projects are delayed, costs are rising, and in some cases, businesses are forced to turn down work. 

At MployHR, we connect businesses with job-ready candidates These workers often bring valuable global experience and are ready to step into roles where shortages are most severe. 

But hiring in the trades isn’t just about finding the right person. Employers must navigate a complex legal landscape covering work rights, sponsorship obligations, Fair Work standards, licensing, and tax. Get it wrong, and the risks include heavy penalties, reputational damage, or stalled projects. 

This guide breaks down the legal basics you need to know when hiring trades talent in Australia, so you can build your workforce with confidence. 

1. Work Rights and Visas 

The first step in hiring is confirming whether a candidate has the legal right to work in Australia. 

  • Temporary Skill Shortage (TSS) Visa 482– This employer-sponsored visa is common in skilled trades and allows businesses to fill roles that cannot be filled locally. 
  • Skilled Employer Sponsored Regional (SESR) Visa 494– This visa is designed for regional employers and provides a pathway to permanent residency for workers. 
  • Partner or Bridging Visas– These visas often carry full work rights, allowing holders to work in trades roles without additional restrictions. 
  • Student Visas– These visas allow candidates to work limited hours during study terms and full-time during semester breaks. 
  • Working Holiday Visas– These visas are popular among young workers who often take up short-term roles in trades, logistics, or agriculture. 
Employers can confirm eligibility through the VEVO (Visa Entitlement Verification Online) system, which shows whether a candidate can legally work in Australia and lists any restrictions. Hiring someone without valid work rights can lead to heavy penalties. 

 2. Employer Sponsorship Obligations 

Sponsorship arrangements, such as those under visa subclasses 482 or 494, come with strict rules that employers must follow. 

  • Pay the Market Salary Rate– Employers must ensure sponsored workers are paid the same as an equivalent Australian worker in the same role and location. 
  • Provide Safe Work Conditions– All sponsored workers must be employed under safe and compliant workplace conditions in line with WHS standards. 
  • Cover Sponsorship Costs– Employers are legally required to cover sponsorship costs such as the Skilling Australians Fund (SAF) levy and cannot pass these costs onto the employee. 
  • Report Changes– Employers must notify the Department of Home Affairs if the worker resigns, changes roles, or if there are significant business changes. 
Breaching sponsorship obligations can result in the cancellation of sponsorship approval, financial penalties, and reputational damage that may affect future hiring. Sponsorship should always be seen as a long-term commitment rather than a quick fix. 

3. Fair Work and Employment Standards 

  • All workers in Australia— citizens, permanent residents, or visa holders — are entitled to the same protections under Fair Work law. 
  • Minimum Pay– Employers must pay at least the rates set under the relevant Modern Award or Enterprise Agreement. 
  • Leave Entitlements– Permanent employees, including eligible visa holders, are entitled to annual leave and personal leave. 
  • Workplace Safety– Employers must provide safe working environments and comply with WHS laws. 
  • Protection from Exploitation– It is unlawful to underpay workers or deny them entitlements, and the Fair Work Ombudsman actively monitors trades and construction sectors. 
Serious breaches of Fair Work standards can result in significant fines and penalties. 

4. Licensing and Trade Qualifications 

Many trades in Australia are licensed professions, meaning workers cannot legally perform certain jobs without the proper licence. 

  • Electricians– Workers must hold a valid state or territory licence before performing electrical work. 
  • Plumbers– Candidates must obtain a plumbing licence in the relevant jurisdiction to work legally. 
  • Builders– Employers must ensure builders hold the appropriate licence for projects above the required contract value, which varies by state. 
  • Welders– Some projects, such as structural or pressure work, may require specific certification before welders can begin work. 
Some workers may also be required to complete a skills assessment through Trades Recognition Australia or other relevant authorities before obtaining a visa or licence. 

5. Taxes and Superannuation 

Employers are responsible for ensuring all workers are set up correctly for tax and superannuation. 

  • Tax– Every worker must have a Tax File Number (TFN). Employers must withhold the correct amount of tax, which depends on whether the worker is considered a tax resident or non-resident. 
  • Superannuation– Employers must pay super contributions for eligible workers, regardless of visa type. Workers who leave Australia permanently may later claim their superannuation through the Departing Australia Superannuation Payment (DASP) scheme. 
6. Anti-Discrimination and Equal Opportunity 

Australian law prohibits discrimination based on nationality, visa status, or cultural background. 

  • Fair Work Act 2009– This act protects employees from discrimination in the workplace. 
  • Equal Opportunity Acts (State)– These laws further reinforce protections against discrimination based on factors such as race, religion, or national origin. 
Employers must always base hiring decisions on skills and merit, not background. 

7. Practical Challenges and Employer Tips 

Hiring trade workers in Australia can bring unique challenges, so employers should plan ahead. 

  • Settlement Support– Some workers may need assistance with housing, banking, or navigating local systems when starting a new role. 
  • Onboarding & Induction– Employers should provide comprehensive inductions covering safety requirements, workplace culture, and employee rights. 
  • Language Support– While most workers speak English, additional support can improve safety and integration in the workplace. 
  • Processing Times– Visa sponsorships and trade licensing applications can take weeks or months, so recruitment timelines should be planned accordingly. 
8. Why Partner with MployHR as your labour hire partner? 

At MployHR, we understand that no two businesses are the same. Some roles demand a tradesperson who’s licensed and ready to step onto site immediately. Others require a candidate with specialised skills and the right compliance to get started. 

That’s where we come in. We make hiring trades talent simple by: 

  • Connecting you with qualified, job-ready candidates across multiple industries. 
  • Managing compliance checks — from VEVO verification to trade licensing and work rights. 
  • Streamlining the recruitment process so you can focus on delivering projects, not navigating paperwork. 
With MployHR, you get more than just workers — you get peace of mind knowing your hires are compliant, skilled, and ready to add value from day one. 

Looking for licensed, job-ready trades talent in Australia? Contact MployHR today — we’ll connect you with the right people, the right way.