In short: A labour agreement is executed by one named legal entity, so it does not follow a restructure that changes that entity. A share transfer usually leaves the agreement intact, while moving the workforce to a new company generally means a fresh request, fresh nominations at $330 each and the levy again at $1,200 or $1,800 per year.
The agreement names an entity, not a business
Boards restructure for tax, funding or succession reasons. The migration position rarely reaches the agenda. We see the consequence later, when the workforce sits under an agreement the new company never signed.
A labour agreement is a contract between the Commonwealth and a single legal person. That person has an ACN, an ABN and a name on the execution page. The trading business can move between entities. The contract does not move with it.
Standard sponsorship works the same way, and employers are used to that. An agreement carries more weight, because it holds the concessions the workforce depends on. Losing it is not an administrative inconvenience. It removes the basis on which every nomination was approved.
Four restructures, four different answers
| What changes | Does the entity change? | Effect on the agreement |
|---|---|---|
| New trading name or business name | No | Agreement continues. Notify the Department of the change. |
| Shares sold, including to a new holding company | No | Agreement continues with the same company. Check the agreement for change of control terms. |
| Business and staff transferred to a related company | Yes | The new company is not a party. It needs its own request and its own nominations. |
| Trust converted, or two companies amalgamated | Yes | Treat as a new employer for migration purposes until the Department confirms otherwise. |
The middle two rows cause the arguments. Commercially, a group reorganisation feels internal. The staff keep their desks, their managers and their pay. For the Department, the employer has changed, because the employing company has changed.
Your restructure is settled in principle. Which position are you in?
Variation, or a new request
Employers often ask whether the agreement can simply be varied to name the new company. A variation request is the right instrument for some changes. Occupations, ceilings and concessions can be revisited during the term on request.
Substituting the party to the contract is different. In our experience the Department treats a change of the sponsoring entity as a new arrangement, not an amendment. That means the endorsement work runs again, including consultation with the relevant union and industry body.
Ask early, and ask in writing. The answer shapes the restructure timetable, not the other way round. Our note on labour agreements when the standard rules fail sets out what that evidence bundle contains.
The workers in the middle
A visa is tied to an approved nomination by a named sponsor. When the employing entity changes, that link breaks even though the job does not.
The visa itself is not cancelled by a restructure. A 482 holder has up to 180 days at a time, and 365 days in total, to be nominated again or to move. That window is generous on paper and short in practice, because a new agreement request cannot be rushed.
The permanent pathway needs separate attention. The Temporary Residence Transition stream asks for 2 years of employment with the nominating employer. Where the employing company changes mid term, do not assume the earlier service still counts. We check that position for each worker before the transfer date is fixed.
The commercial documents decide the migration answer
We read the restructure papers before we advise on the agreement. Four documents usually settle it.
The new company usually has no trading history. That is an evidentiary problem, not just a formality. A request from a company incorporated last month needs group accounts, guarantees or both to show it can carry the workforce.
A sequence that works
- Before the board resolves Identify every sponsored worker, their occupation, their visa expiry and their position on the permanent pathway.
- Structure review Confirm which entity will employ staff after completion. If the answer is a new company, the migration timetable now drives the transaction date.
- Approach the Department Put the proposed structure in writing and ask how the agreement is treated. Keep the response on file.
- Prepare the request Evidence, consultation and occupation list for the new entity. Run this in parallel with the commercial documents, not after them.
- Nominations Lodge for each worker under the new arrangement. Budget $330 per 482 nomination, $540 per 186, and the levy each time.
- Notifications Report the structural change to the Department within 28 days, and keep records under both the old and new entity.
What happens to ceilings and the annual report mid restructure
Ceilings sit with the agreement, not the workforce. A new agreement starts its own count, so places used this year under the old one do not carry across. The annual report obligation stays with the entity that held the agreement for the reporting period. Where that entity is being wound up, someone still has to sign the report. Decide who, before the company is deregistered.
How we run these files
Our commercial practice drafts the restructure documents. Our migration practice holds the sponsorship position at the same table. The order of work matters more than the volume of it, because a completion date set without the migration timetable is the expensive mistake.
Sales raise a related set of questions, covered in our note on selling a business with sponsored employees. If a restructure is being modelled now, speak to us while the structure is still a draft.
Frequently asked questions
Does our labour agreement transfer to the new entity?
No. The agreement binds the company that executed it. A different company needs its own arrangement with the Department.
We are only changing our trading name. Does the agreement survive?
Yes. The legal entity is unchanged. Notify the Department and make sure later nominations carry the correct legal name.
A new holding company is buying our shares. Is that a problem?
Usually not for the agreement, because the employing company continues. Check the agreement and your supply contracts for change of control terms.
Can the Department simply add the new company to our agreement?
Ask, but plan for no. A change of party is generally treated as a new request, with consultation and evidence again.
What happens to our sponsored staff while a new agreement is prepared?
Their visas remain valid. A 482 holder has up to 180 days at a time to be nominated again, so timing the transfer matters.
Figures verified against Home Affairs visa pricing as at 1 July 2026. Sponsorship and labour agreement obligations are drawn from the Migration Regulations 1994.
General information as at 14 September 2026. Not legal advice. Restructure and sponsorship outcomes turn on your own facts, so obtain advice before you fix a completion date.