Employer of Record (EOR) Australia
- Hire & onboard employees in Australia without an entity
- Create employment contract online in minutes
- Pay your team in Australia compliantly
Table of Contents
Employer of Record (EOR) in Australia
Australia’s robust economy and skilled workforce make it a key market for global businesses. Our Employer of Record Australia services ensure compliance with local labor laws, managing everything from employee onboarding to payroll and taxes. With our EOR Australia solutions, you can focus on growing your business without the need to establish a legal entity.
Employment Benefits
Mandatory benefits
In Australia, mandatory contributions are essential for supporting the welfare of employees. These contributions are designed to provide employees with access to essential services and retirement savings. Employers play a crucial role in ensuring compliance with these requirements.
| Superannuation | Employers are required to contribute 11.5% of an employee’s ordinary earnings to a superannuation fund for retirement savings. |
| Pay As You Go (PAYG) Tax | Employers must withhold income tax from employee wages and remit it to the Australian Taxation Office (ATO). |
| Workers’ Compensation | Employers must provide workers’ compensation insurance to cover employees for work-related injuries or illnesses. |
| Payroll Tax | Employers may be required to pay payroll tax depending on their total employee wages and the state in which they operate. |
| Leave Entitlements | Employers must adhere to mandatory leave entitlements, including annual leave, sick leave, and parental leave. |
In Australia’s competitive job market, offering a comprehensive benefits package is essential for attracting and retaining top talent. Employers frequently provide additional perks such as private health insurance, performance-based bonuses, flexible work arrangements, and opportunities for professional development, in addition to mandatory contributions to Superannuation and Medicare.
These extra benefits not only improve employee satisfaction and productivity but also foster long-term loyalty, helping you build a dedicated and motivated workforce. By offering a well-rounded benefits package, you can enhance your employment offer and create a supportive environment that drives both personal and professional growth.
Our Employer of Record (EOR) service in Australia can help you design a benefits package tailored to your industry and workforce requirements. We ensure that your benefits offerings are fully compliant with local regulations and meet the expectations of skilled professionals. By partnering with us, you can create a compelling benefits package that strengthens your employment offer and supports both employee well-being and career growth.
Additional perks and benefits
Beyond mandatory contributions, many Australian employers offer additional perks and benefits to attract and retain talent. These can enhance employee satisfaction and improve overall workplace morale.
| Remote work options | Provides the opportunity to work from home or other locations. |
| Employee Assistance Programs (EAPs) | These programs offer confidential counselling and support services to help employees navigate personal and professional challenges. |
| Employee training and development | Organisations invest in training programs to enhance employee skills and career advancement opportunities. |
| Work-life balance initiatives | Employers may implement programs like remote work options and family-friendly policies to support employees’ personal lives. |
Working Hours and Leave Policies
Standard working hours
- Statutory working hours
Australia’s statutory working hours are designed to promote a healthy work-life balance for employees.- Standard working hours: The standard workweek is typically 38 hours – equivalent to 7.6 hours per day from Mondays to Fridays.
- Rest days: Employees are entitled to a minimum of one rest day per week, usually falling on the weekend.
- Overtime regulations
Overtime regulations in Australia ensure that employees are compensated fairly for additional hours worked beyond standard hours.- Overtime pay is typically calculated at 1.5 times the normal hourly rate for hours worked beyond the standard 38 hours.
- Employees must be notified in advance about expected overtime hours.
- Certain awards and agreements may provide higher overtime rates or additional compensation for weekends or public holidays.
- Employers must keep accurate records of hours worked by employees for compliance purposes.
Leave entitlements
Leave entitlements in Australia provide employees with essential time off for various reasons, supporting their health and well-being.
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Annual leave:
Employees are entitled to a minimum of four weeks of paid annual leave per year, accrued progressively throughout their employment.
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Sick leave:
Full-time employees receive ten days of paid sick leave per year, allowing them to take time off due to illness or injury.
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Maternity leave:
Eligible employees can take up to 12 months of unpaid parental leave, with some receiving paid leave from their employer.
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Paternity leave:
New fathers are entitled to up to two weeks of paid paternity leave, supporting family bonding after the birth of a child.
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Public holiday leave:
Employees are entitled to paid leave on designated public holidays, with additional compensation for work performed on those days.
In Australia, detailed local laws govern employee leave entitlements, making strict compliance essential for your business. At AYP, we manage leave entitlements accurately and in full compliance with Australia’s regulations. Let us manage the complexities of local compliance, so you can concentrate on growing your core business.
Visa and Work Permits
Employment visas
Australia offers various employment visas to attract skilled workers from around the globe. These visas are designed to meet specific labour market needs and support the economy.
- Temporary Skill Shortage (TSS) Visa:The TSS visa allows Australian employers to address labour shortages by sponsoring skilled workers from overseas for positions that cannot be filled locally. It has two streams: the Short-Term stream for occupations on the Short-Term Skilled Occupation List and the Medium-Term stream for those on the Medium and Long-Term Strategic Skills List, enabling stays of up to four years depending on the stream.
- Skilled Independent Visa:This points-based visa is designed for skilled workers who are not sponsored by an employer, state, or territory but wish to live and work permanently in Australia. Applicants are assessed based on their skills, age, English language proficiency, and work experience, and they must be on Australia’s Skilled Occupation List to be eligible.
- Employer-Sponsored Visas:These visas, including the Employer Nomination Scheme (ENS) and Regional Sponsored Migration Scheme (RSMS), allow Australian employers to nominate skilled workers for permanent residency. They are aimed at filling critical skills gaps within the workforce and are available to both onshore and offshore applicants, depending on the specific visa subclass.
Business visas
Business visas in Australia facilitate international business activities, enabling foreign nationals to conduct business in the country.
- Business Innovation and Investment Visa:
This visa is designed for individuals who want to establish, develop, or manage a new or existing business in Australia, or to make a significant investment in an Australian business. Applicants must demonstrate a successful track record in business or investment and meet specific financial criteria to qualify for this visa, which can lead to permanent residency. - Business Visitor Visa:
The Business Visitor visa allows foreign nationals to visit Australia for short-term business activities, such as attending meetings, conferences, or negotiating contracts. This visa does not permit recipients to work for an Australian company or engage in business activities that could be seen as competing with local businesses, and it is typically granted for stays of up to three months.
Other relevant visa types
Australia has a variety of other visas to accommodate various situations for foreign nationals.
- Working Holiday Visa:
Designed for young people from eligible countries, this visa enables individuals to work and travel in Australia for up to 12 months. It encourages cultural exchange and allows holders to undertake short-term employment to supplement their travel funds. - Partner Visa:
This visa is available for individuals in a committed relationship with an Australian citizen, permanent resident, or eligible New Zealand citizen. It allows the partner to live in Australia and can lead to permanent residency after meeting specific relationship requirements. - Family Visa:
Family visas allow Australian citizens and permanent residents to sponsor their family members to join them in Australia. This category includes various subclasses, such as parent, child, and sibling visas, each with its own eligibility criteria and conditions. - Training Visa:
The Training visa enables foreign nationals to participate in workplace-based training programs to enhance their skills in their field of expertise. This visa is aimed at individuals who wish to gain practical experience and knowledge to support their career development while in Australia.
Navigating Australia ‘s employment visa and work permit regulations can be challenging due to strict rules and detailed requirements. Our Employer of Record (EOR) service simplifies the visa application process, ensuring full compliance with Australia ’s immigration laws. We handle everything from documentation to approvals, allowing you to onboard international talent quickly and seamlessly without the usual complications. Avoid the stress and potential delays—partner with us to ensure a smooth, compliant visa process.
Termination and Offboarding Procedure
In Australia, termination and offboarding practices are governed by strict employment laws designed to ensure fair treatment of employees. Employers must adhere to the Fair Work Act 2009, which outlines the requirements for lawful termination, including providing a valid reason for dismissal, giving the appropriate notice period, and offering redundancy payments where applicable. In cases of serious misconduct, termination can occur without notice.
During offboarding, employers must also ensure that all final payments, including accrued leave and any outstanding wages, are settled promptly. Proper documentation is crucial, including providing a separation certificate and ensuring the employee’s access to necessary resources for a smooth transition. Following these practices not only complies with legal requirements but also helps maintain a positive company reputation and minimizes the risk of legal disputes.
Offboarding and termination in Australia require careful attention to local labor laws. AYP’s Employer of Record (EOR) services simplify these processes, ensuring smooth transitions and full compliance with Australia’s regulations. Let us take care of the legal intricacies so you can focus on your business.
Advantages of Using Employer of Record through AYP
Partnering with AYP’s Employer of Record Australia service offers significant advantages in navigating the country’s complex employment landscape. Our all-encompassing service manages payroll, benefits, and tax compliance, safeguarding your business from the risks of direct hiring.
With our deep expertise in Australian labor laws, your company can confidently meet all legal obligations related to wages, leave entitlements, and workplace health and safety. This proactive management not only streamlines your administrative duties but also protects you from potential penalties and legal challenges.
By entrusting AYP’s EOR Australia with these crucial responsibilities, you can focus on scaling your business and achieving your strategic objectives. Let AYP be your reliable Employer of Record Australia partner in delivering a seamless, compliant employment experience in Australia.
Contact us today, and allow our Employer of Record Australia experts to handle the complexities of employment on your behalf.
