Everything you need to manage your workforce
Your global team, locally employed
Set up and manage entities
Manage all admin tasks from one place
Localised employment contracts
Relocate your team anywhere
Track, approve, and manage time off
Have the latest guide for hiring in Australia through Native Teams
Download Australia Guide
Please fill out the form to receive a free copy of our Australia payroll and benefits guide
Hiring workers in Australia can be difficult if you aren’t acquainted with the local laws and regulations. Learning the fundamentals of employment in Australia is essential before you begin the process.
Businesses must first ensure compliance with the Fair Work Act 2009, which sets minimum standards for compensation, benefits, and contract termination procedures in Australia. Additionally, the Competition and Consumer Act 2010 (Cth) addresses unfair contract terms and protects employees from exploitative agreements.
Employers are also responsible for complying with anti-discrimination rules and providing all candidates equal opportunities. Lastly, it’s a good idea to implement a thorough onboarding process that involves providing staff with contracts, regulations, and health and safety guidelines.
Australia is a great choice for hiring remote employees for multiple reasons. It is a first-world country with a highly educated, diverse workforce and the technological infrastructure needed for remote work.
Also, Australia’s stable economic and political environment makes it a secure place to hire remote workers. With its high standard of living and strong quality of life, Australia offers a bright and reliable workforce for companies looking to expand their remote teams.
Finally, Australia’s time zone aligns with many other Asian countries, making it easier for remote workers to collaborate and communicate effectively with teams worldwide. Furthermore, remote workers may be more motivated and productive in Australia due to the country’s work-life balance philosophy.
Native Teams’ Employer of Record services help you hire and pay your team through an owned infrastructure in Australia. We handle everything from legal employment to ensuring your team is paid and managed compliantly and with care, without any third parties involved.
Hire your first Australian employee with Native Teams.
Employers must follow a few essential laws and regulations to ensure a fully compliant employment process in Australia.
The employment relationship in Australia is governed by a combination of common law principles and statutory regulations, primarily under the Fair Work Act 2009 (FW Act).
The FW Act establishes the Fair Work Commission (FWC), an independent body responsible for setting minimum wages, approving enterprise agreements, and resolving workplace disputes.
The National Employment Standards (NES) provide ten minimum employee entitlements under the national workplace relations system. These include provisions relating to maximum weekly working hours, requests for flexible working arrangements, parental leave, and notice of termination and redundancy pay.
The FW Act also provides for modern awards, which establish industry- or occupation-specific minimum employment standards that supplement the NES.
Employment contracts in Australia may be written, verbal, or a combination of both. Written contracts are generally recommended to provide clarity and reduce potential misunderstandings, although verbal agreements can also be legally binding.
Employment contracts in Australia are primarily governed by the Fair Work Act 2009 and must comply with the National Employment Standards (NES). Modern awards and enterprise agreements may also establish additional conditions for particular industries or occupations.
The main types of employment contracts include:
Permanent employment
Permanent employment may be full-time or part-time and continues until the employee resigns or the employment is terminated. Full-time employees typically work 38 hours per week, while part-time employees work fewer hours and receive similar entitlements on a pro-rata basis.
Fixed-term employment
Fixed-term contracts are concluded for a specified period or project. The employment ends when the agreed term expires, or the project is completed.
Casual employment
Casual contracts provide greater flexibility and do not guarantee regular working hours. Casual employees receive a higher hourly rate to compensate for benefits they do not receive, such as sick leave or annual leave.
Regardless of the contract type, employees are entitled to the applicable minimum protections established by the NES, including provisions relating to working hours, leave, and termination.
Employment contracts in Australia are legally binding agreements that define the rights and obligations of the employer and employee. They must comply with the Fair Work Act 2009, National Employment Standards (NES), and any applicable modern awards or enterprise agreements.
An employment contract should clearly set out key terms such as:
Contract terms cannot provide less favourable conditions than the minimum entitlements established by the NES or applicable awards and agreements.
Employment contracts may be written or oral, although written contracts are recommended to clearly document the agreed terms.
Employers must also provide new employees with the Fair Work Information Statement (FWIS) before they start work or as soon as practicable after employment begins.
Download a free employment contract for Australia through Native Teams.
Employment contracts in Australia may be oral, written, or electronic. Regardless of their format, they must comply with the Fair Work Act 2009, the National Employment Standards (NES), and any applicable modern awards or enterprise agreements.
A written employment contract is not legally mandatory, but it is recommended as it provides clear evidence of the terms agreed between the employer and employee. Oral contracts can also be legally binding but may be more difficult to prove in the event of a dispute.
Electronic employment contracts are also legally valid, provided they meet the same requirements as written agreements.
Regardless of the contract format, employees must receive the applicable minimum employment standards, including provisions relating to working hours, flexible working arrangements, parental and annual leave, personal leave, and notice of termination and redundancy pay.
Working hours in Australia are governed by the Fair Work Act 2009 and the National Employment Standards (NES).
The standard working time for full-time employees is 38 hours per week. Employees may work additional hours where these are reasonable and agreed upon by both parties.
Employment contracts should clearly specify the employee’s agreed working hours, including any arrangements relating to overtime or flexible working.
The NES also provides employees with protections relating to:
Modern awards and enterprise agreements may establish additional industry-specific working time conditions that complement the NES.
Night work in Australia is governed by the Fair Work Act 2009, as well as applicable modern awards and enterprise agreements.
Night work typically refers to work performed between 10 PM and 6 AM, although the specific hours may vary depending on the applicable award or agreement.
Employees working night shifts may be entitled to additional compensation, such as night shift penalties or allowances.
Employment contracts should clearly specify relevant night work conditions, including:
Employers must comply with the applicable requirements governing night work and ensure that employees receive the pay and conditions to which they are entitled.
Breaks and leave entitlements in Australia are governed by the Fair Work Act 2009 and the National Employment Standards (NES).
The NES provides minimum entitlements covering different types of breaks and leave, including:
Employment contracts should clearly specify the applicable break and leave entitlements, including any additional benefits provided by the employer.
Annual leave in Australia is governed by the Fair Work Act 2009 and the National Employment Standards (NES).
Full-time employees are generally entitled to four weeks of paid annual leave per year, while part-time employees receive annual leave on a pro-rata basis according to their ordinary working hours.
Employees classified as shift workers under the NES and an applicable modern award or enterprise agreement may be entitled to five weeks of annual leave per year.
Annual leave accrues progressively throughout employment and carries over from year to year if it is not used.
Employment contracts should clearly outline:
Modern awards and enterprise agreements may also establish additional conditions governing how annual leave is managed.
Salaries in Australia are governed primarily by the Fair Work Act 2009, together with applicable modern awards and enterprise agreements.
The Fair Work Commission (FWC) reviews and sets the national minimum wage annually. Modern awards establish minimum pay rates for specific industries and occupations, while enterprise agreements set workplace-level conditions that must meet or exceed applicable minimum standards.
Employment contracts should clearly specify the employee’s remuneration, including:
The agreed salary must comply with the applicable minimum wage requirements and any relevant modern award or enterprise agreement.
To calculate the salary and taxes in Australia, click here.
Sick leave in Australia is covered by personal/carer’s leave under the Fair Work Act 2009 and the National Employment Standards (NES).
Full-time employees are entitled to 10 days of paid personal/carer’s leave per year, while part-time employees receive a pro-rata entitlement based on their ordinary working hours. Casual employees are not entitled to paid sick leave.
Personal/carer’s leave accrues progressively and carries over from year to year if unused. It may be taken when an employee:
Employment contracts should outline the applicable leave entitlement, including the accrual rate, notification process, and any supporting documentation required, such as a medical certificate.
Contracts should also specify procedures relating to unpaid carer’s leave and compassionate leave.
Parental leave in Australia is governed by the Fair Work Act 2009 and the National Employment Standards (NES).
Eligible employees are entitled to up to 12 months of unpaid parental leave following the birth or adoption of a child. Employees may request an additional 12 months of leave, subject to employer agreement.
To be eligible, employees must have completed at least 12 months of continuous service with their employer before the expected birth or adoption date.
Parental leave may be taken by either parent, either simultaneously or consecutively.
Employment contracts should clearly outline:
In addition to unpaid parental leave available under the National Employment Standards (NES), eligible parents may receive government-funded payments following the birth or adoption of a child.
Paternity leave
Eligible working fathers and partners may receive up to two weeks of government-funded pay at the national minimum wage through the Dad and Partner Pay scheme.
To qualify, employees must have:
Maternity leave
Eligible working mothers may receive up to 18 weeks of pay at the national minimum wage through the government’s Paid Parental Leave (PPL) scheme.
To qualify, employees must have:
Employment contracts should inform employees about their potential eligibility for these schemes and the relevant application process. Employers typically act as the paymasters for government-funded parental leave payments.
Employment in Australia may end through resignation, redundancy, dismissal, or the expiration of a fixed-term contract.
Resignation
An employee may choose to end their employment by providing the appropriate notice specified in their employment contract.
Redundancy
Redundancy occurs when an employer determines that a particular position is no longer required. The redundancy must be genuine, and employers must follow applicable consultation procedures and provide redundancy pay.
Dismissal
An employer may dismiss an employee for reasons including performance, misconduct, or incapacity. Employers must follow a fair process when terminating employment on these grounds.
Expiration of a fixed-term contract
Employment may also end when the agreed term of a fixed-term contract expires.
Employment contracts should clearly outline relevant termination conditions, including notice periods, redundancy entitlements, grounds for dismissal, disciplinary and performance management procedures, and final payments and entitlements.
Employers must comply with the minimum notice periods under the National Employment Standards (NES) unless the employment contract provides for a longer period.
Ordinary dismissal in Australia may occur when an employer terminates an employee for reasons such as poor performance, misconduct, capacity, or other valid reasons.
Under the Fair Work Act 2009, an employer must have a valid reason for dismissal, and the termination must not be harsh, unjust, or unreasonable. Employers must also follow a fair dismissal process.
Employees may be protected from unfair dismissal once they have completed the minimum employment period:
Employers must provide written notice of termination in accordance with the National Employment Standards (NES) and any applicable contractual requirements. The required notice period may vary depending on the employee’s length of service and, in some cases, age.
Instead of requiring the employee to work through the notice period, the employer may provide payment in lieu of notice.
Notice periods in Australia are governed by the Fair Work Act 2009 and the National Employment Standards (NES). The minimum notice period depends on the employee’s length of service:
Employees who are over 45 years old and have completed at least two years of continuous service are entitled to an additional week of notice.
Employment contracts may provide for longer notice periods, but cannot provide less than the statutory minimum.
During the notice period, employees must continue performing their duties unless otherwise agreed. Employers may instead provide payment in lieu of notice, covering the remuneration the employee would have received during the notice period, including base salary, allowances, and other regular payments.
Employees may also challenge an unfair dismissal through the mechanisms provided under the Fair Work Act.
Unemployed individuals in Australia may be eligible for financial assistance through the social security system, including the JobSeeker Payment.
Eligibility for JobSeeker Payment depends on several conditions, including:
Individuals looking for work are also entitled to fair treatment and protection from discrimination.
When employment is terminated, employees are entitled to the applicable notice period or payment in lieu of notice, as well as redundancy pay where applicable. They may also be entitled to final pay and accrued leave balances.
Employees who believe they have been unfairly dismissed may challenge the termination through the Fair Work Commission, which may provide remedies such as reinstatement or compensation.
Severance pay, also known as redundancy pay, may be provided to employees in Australia when their position is made redundant.
Under the Fair Work Act 2009, redundancy pay applies to employees who have:
The amount of redundancy pay is based on the employee’s base rate of pay and length of continuous service. For example:
Redundancy pay is provided in addition to any applicable notice period or payment in lieu of notice and accrued entitlements such as annual leave and long service leave.
Certain exemptions and variations may apply, including for small businesses with fewer than 15 employees and certain casual, seasonal, and fixed-term employees.
Probationary periods in Australia typically range from three to six months, although the exact duration may be negotiated and specified in the employment contract.
During probation, employers can assess the employee’s performance, conduct, and suitability for the role, while employees can evaluate whether the position and workplace meet their expectations.
Employees on probation generally have the same workplace rights and entitlements as other employees, including:
However, unfair dismissal protections are subject to a minimum employment period. This is generally six months for businesses with more than 15 employees and 12 months for smaller businesses.
During probation, employers should conduct performance reviews and provide feedback. If an employee’s performance or conduct is unsatisfactory, the employer may terminate the employment with the appropriate notice or payment in lieu of notice, as specified in the employment contract.
If the probationary period is successfully completed, the employee continues employment under the terms and conditions of their employment contract.
Intellectual property (IP) rights in Australia cover creations such as inventions, literary and artistic works, designs, symbols, names, and images used in commerce.
The main legislation governing intellectual property includes the Copyright Act 1968, Patents Act 1990, Trade Marks Act 1995, and Designs Act 2003, alongside common law principles and contractual agreements.
In an employment relationship, intellectual property created by an employee in the course of their employment typically belongs to the employer. However, this may be modified by specific terms in the employment contract.
Employment contracts commonly include IP clauses that define:
Clearly defining these terms can help distinguish between personal and work-related creations and reduce potential disputes over intellectual property ownership.
Employee data privacy in Australia is primarily governed by the Privacy Act 1988 and the Australian Privacy Principles (APPs), which regulate how personal information is collected, used, disclosed, and stored.
Employers may collect personal information related to the employment relationship, including contact details, employment history, medical records, and performance evaluations. This information must be collected for lawful purposes related to employment, and employees should be informed about how and why their data is being used.
Employers must take reasonable steps to protect employee information from misuse, interference, loss, unauthorised access, modification, or disclosure.
Employment contracts should clearly address:
Employees have the right to access personal information held by their employer and request corrections where the information is inaccurate, outdated, incomplete, irrelevant, or misleading.
In Australia, non-compete provisions are commonly referred to as restraint of trade clauses and may be included in employment contracts to protect an employer’s legitimate business interests.
These clauses may restrict employees from engaging in certain competitive activities during or after employment, such as working for a competitor, starting a competing business, or soliciting the employer’s clients or employees.
Under common law, restraint of trade clauses are generally considered void unless they:
The legal framework also includes the Restraints of Trade Act 1976 (NSW) in New South Wales, with similar principles applying across other states and territories.
When assessing whether a restraint is reasonable, courts may consider factors such as the nature of the business, the employee’s role, and the extent of the restriction. Overly broad or vague restraint clauses may be unenforceable.
Remote working arrangements in Australia are primarily governed by the Fair Work Act 2009 and may form part of an employee’s flexible working arrangements.
Employees with specific needs, including parents of young children, carers, and employees with disabilities, may request flexible working arrangements that include remote work. Employers must consider these requests and may refuse them on reasonable business grounds.
Employment contracts should clearly outline the terms of remote work, including:
Health and safety obligations also extend to remote working arrangements. Employers must ensure that the home working environment is safe and compliant with applicable health and safety standards, including conducting risk assessments and providing necessary equipment.
Employees are responsible for following safety procedures and reporting workplace hazards or incidents while working remotely.
Both employers and employees have responsibilities when working remotely in Australia, guided by the Fair Work Act 2009 and the Work Health and Safety Act 2011.
Employers are responsible for:
Employees are responsible for:
Employers in Australia have a duty of care to provide a safe working environment, including when employees work remotely from home.
Under the Work Health and Safety Act 2011, employers are responsible for:
Employees must take reasonable care of their own health and safety and that of others who may be affected by their work. This includes following safety guidelines, using equipment correctly, and promptly reporting hazards or incidents.
Remote arrangements must also comply with applicable working hours, breaks, and leave entitlements. Employers should ensure that remote work does not lead to excessive working hours or interfere with employees’ rights to rest and personal time.
Hiring employees from Australia can be exceptionally advantageous compared to recruiting from other countries. Firstly, Australia is renowned for its highly skilled workforce across various industries, including mining, healthcare, technology, and finance. The country prioritises education and vocational training, ensuring a pool of professionals with up-to-date knowledge and skills.
Australia’s geographical location in Asia-Pacific makes it a strategic gateway for businesses expanding into Asia and beyond. Its robust infrastructure supports efficient connectivity, facilitating smooth operations and market access. Thanks to the country’s diverse population and global business outlook, Australian employees often possess international experience and are accustomed to working in multicultural settings.
Culturally, Australians are known for their adaptability and openness, contributing to effective collaboration within global teams. Proficiency in English as the primary language of business, along with a multicultural society that values diversity, enhances communication and integration efforts in international workplaces.
Moreover, Australia has a stable economic environment, providing businesses with reliable operational conditions and access to high-calibre talent. Combined with its strong regulatory framework and support for innovation, hiring Australian professionals can significantly boost a company’s capabilities and global competitiveness.
Native Teams helps you employ and pay your team in Australia directly through owned entities and infrastructure.
Get in touch with us. We'll be happy to assist you!
