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Compliantly hire and expand your business in Australia
When it comes to employing and managing employees in Australia, there are specific procedures and regulations that must be followed.
Australia is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands. Australia is the largest country by area in Oceania and the world’s sixth-largest country. It is a megadiverse country, and its size gives it a wide variety of landscapes and climates, with deserts in the centre, tropical rainforests in the north-east, tropical savannas in the north, and mountain ranges in the south-east.
Canberra
Capital
$63,487
GDP per Capita
$1.688 trillion
Total GDP
1,409,670,000
Total Population
0.951
Human Development Index
UTC +8 to +10 (DST)
Time Zone
English
Official Language
Australian Dollar (AUD)
Currency
7,688,287 km2 (2,968,464 mi2)
Land Area
Here's what you need to know
Employing workers in Australia involves following certain regulations and procedures. Nevertheless, partnering with a local expert in employment and payroll can facilitate the process and ensure that you’re meeting all the necessary legal requirements while providing a positive work experience for your employees.
Employment contracts are not mandatory in Australia, but strongly recommended. The Fair Work Act sets out minimum employment conditions. Contracts should outline:
Job title, duties, and responsibilities
Award (if applicable) which dictates minimum pay rates and conditions
Base salary and any allowances
Working hours and overtime pay (overtime pay is mandatory for exceeding 40 hours per week)
Leave entitlements (annual leave, sick leave, etc.)
Termination terms (notice period, severance pay)
Confidentiality clauses (if applicable)
Minimum Wage
Australia has a national minimum wage, currently set at AUD $23.23 per hour for full-time adults (over 21). Award rates set by industry tribunals may set higher minimums for specific occupations.
Payroll Terms
Salaries are typically paid fortnightly or monthly by electronic funds transfer into the employee's bank account. Employers must provide payslips with details of gross pay, deductions, and net pay.
Taxes
Australia operates a Pay As You Go (PAYG) withholding system. Employers withhold income tax from employee salaries and remit it to the Australian Taxation Office (ATO) at regular intervals.
Superannuation
Employers are required to contribute a minimum percentage of an employee's salary (currently 9.5%) towards a superannuation fund, a mandatory retirement savings scheme.
Australia has a standardized leave policy mandated by the National Employment Standards (NES):
Annual Leave
Minimum of 4 weeks per year (pro-rated for part-time employees).
Personal Leave
10 days per year (pro-rated for part-time employees) for various personal needs (illness, emergencies, etc).
Paid Parental Leave
Up to 18 weeks of paid leave (shared between parents) for eligible parents.
Public Holidays
10-11 paid public holidays per year, varying by state and territory.
Long Service Leave
Varies by state and territory, typically accruing after 10 years of service.
Probationary Period
There's no mandatory probationary period in Australia. However, employment contracts often include one, typically lasting between 3 and 6 months. During this time, termination can be easier for both employer and employee.
Termination of Employment
Termination of employment should follow the terms outlined in the contract or the Fair Work Act. Notice periods vary depending on the employee's length of service, award coverage (if applicable), and reason for termination. Severance pay may also be required under certain circumstances.
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