The Federal Government's bill to crack down on the 457 foreign worker visa scheme has passed the Lower House.

The bill passed 73 votes to 72 after the Government yesterday struck a compromise deal with crucial crossbench MPs.

A crackdown on 457 visas was announced by former prime minister Julia Gillard in March.

The new laws will force employers to do local labour market testing to prove they cannot find an Australian citizen to do the job before sponsoring an overseas worker on a 457 visa.

Employers will also have to spend a percentage of their total payroll on training local staff and 457 visa holders.

Fair Work inspectors will be empowered to investigate potential breaches of the system.

The Government says the laws will safeguard Australian jobs and ensure overseas workers are not exploited.

In March, Ms Gillard said the visa program was "out of control" and has stated that jobs should be given to Australians first.

Immigration Minister Brendan O'Connor has claimed there have been more than 10,000 instances of rorting by employers - a claim he later said was an estimate.

The crackdown has been criticised by business as an unwarranted measure and by the Greens and Opposition as having tinges of xenophobia.

It has also been the source of internal friction within the Labor Party, with some MPs calling for more details on the rorting and others saying the scheme should be scrapped altogether.

Unions have been pushing for the tighter regulations to ensure workers under the visa scheme have more workplace protections.