Australia EOR & PEO

Start hiring in Australia

Simple, compliant hiring with Horizons EOR

Hire in Australia

Horizons ensures day-to-day guidance to help your business navigate Australian labor laws and regulations. Horizons also ensures payroll is processed weekly or fortnightly (the standard periods in Australia), and that taxes are withheld as required. As the Australia Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to state authorities, and submission of tax returns to the Australian Tax Office. Partnering with our Australia EOR is the quickest and most cost-effective way to enter the Australian market.

Note, an Australia Employer of Record is also known as an Australia Professional Employer Organization (PEO).

Facts & Stats

stay compliant with Australia labor laws

Employment Laws

It is crucial that all businesses hiring employees in Australia comply with applicable tax and labor laws. This includes laws relating to employment contracts, minimum employment rights, labor law and payroll/employment taxes.

Horizons is licensed to provide labour hire services in all states and territories that require it, including Queensland, Victoria and the Australian Capital Territory (ACT).

Employment contracts in Australia

Australia’s National Employment Standards provide multiple mechanisms for employing staff in Australia, depending on the industry. These options include an award, enterprise agreement, or employment contract.

Awards include the minimum standards of employment and outline the rules and conditions for all employees within a certain industry. These cover the basic rate of pay, type of employment, rates for overtime work, annual salary, allowances, redundancy, and stipulations surrounding leave, resignation, and termination.

Enterprise agreements state the working conditions for a group of employees with one employer (a ‘single-enterprise agreement’) or multiple employers (a ‘multiple-employer agreement’.

It is also possible for businesses to establish an enterprise agreement before any employees are onboarded. This is known as an ‘greenfields enterprise agreement’ and is negotiated between the business and union representatives.

Written contracts are traditionally used for employees who do not qualify for an enterprise agreement or award. Contracts should include the employee’s job responsibilities, their pay rate, expected weekly hours, and entitlements for taking leave.

By partnering with our Australia EOR, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.

Fixed-term

Indefinite

Working hours in Australia

In Australia, the National Employment Standards stipulate a 38-hour work week. However, additional hours can be undertaken if necessary.

Holiday Schedule in Australia [2024]

Australia has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

Date	Holiday name
1 Jan Monday	New Year’s Day
26 Jan Friday	Australia Day
29 Mar Friday	Good Friday
1 Apr Monday	Easter Monday
25 Apr Thursday	ANZAC Day
25 Dec Wednesday	Christmas Day
26 Dec Thursday	Boxing Day

Australia payroll and employment taxes

Australia’s Pay-as-You-Go tax system requires employers to withhold employee income taxes and remit them to the government. Payroll taxes may be imposed on wages, superannuation, and other employment benefits. These taxes are levied by individual states and territories are not considered a federal tax. As such, the tax rate varies by region.

Employers must contribute an amount equal to 10% of their employee’s gross salary each quarter into a superannuation (retirement) fund for all employees who earn more than AUD $450 per month.

Additionally, employers in Australia who offer fringe benefits must pay a fringe benefit tax on the value of these benefits. Fringe benefits include a company vehicle, parking, free private health insurance, and other benefits. A laptop or cell phone for business use does not incur a fringe benefit tax.

Public insurance

In Australia, there is a universal public healthcare system. Permanent residents in Australia have access to Medicare, which is the state health care provider. Additionally, the government recommends that employees who earn over a particular monetary threshold take out private insurance policies on top of their state coverage. This provides residents with increased coverage while also relieving pressure on the public health system. Medicare provides basic healthcare coverage for hospital costs, a percentage of specialist costs, and pharmaceutical expenses.

Private insurance

Higher earning employees in Australia are subject to pay higher taxes if they choose not to take out private insurance. There are three primary kinds of private insurance: ambulance insurance, hospital insurance, and “extras”. Ambulance insurance covers the costs for emergency service vehicles which are not covered by Medicare. Hospital insurance provides coverage for private hospitals and doctors’ offices, while “extras” cover additional healthcare needs like dental and optometry.

Insurance for non-residents

Employees with a work visa in Australia are not entitled to receive Medicare benefits and must take out their own private policy. It is important to make sure that all employees have the minimum required insurance in place. Failure to do so can result in potential hospitalization or medical emergency costs being levied onto the employer.

Annual leave

Full-time workers are entitled to at least 28 days of vacation time each year. However, some employers offer additional vacation time as an added benefit. If an employee does not take his or her annual leave, the amount of unpaid leave is paid to the employee at the time the employment relationship ceases.

Personal leave

Australian full-time employees are allowed ten day’s paid personal leave each year. This can be used when an employee is sick or needs to care for a relative. If leave is not taken, it accumulates into the following year. However, unlike annual leave, employees are not paid for unused personal leave when the employment relationship ceases.

Maternity and paternity leave

In Australia, female employees are entitled to a set period of 12 week’s paid maternity leave, which is provided by the federal government as part of Australia’s public healthcare system. This amount is paid at the national minimum wage and must be taken in one continuous period.

In addition, female employees are entitled to to up to 30 days of ‘flexible’ paid parental leave. This need not be taken continuously, and should be negotiated with the employer.

To receive full maternity leave benefits, a woman must be the primary caregiver of a newborn child or a child they have recently adopted. Employees must have also been employed with the same company for at least 10 of the previous 13 months. Additionally, employees need to meet local residency requirements, earn less than $150,000 in the preceding fiscal year, and not return to work during the period in which they are receiving maternity leave.

Spouses or partners of the female employee on maternity leave are entitled to two week’s paid leave. This is paid for by the government, so long as the employee is not already receiving paid leave from their employer. It is also paid at the national minimum wage.

In addition, employees are entitled up to 12 months unpaid parental leave.

Maternity and paternity leave

In addition, female employees are entitled to to up to 30 days of ‘flexible’ paid parental leave. This need not be taken continuously, and should be negotiated with the employer.

In addition, employees are entitled up to 12 months unpaid parental leave.

Termination and severance

Employers are required to provide staff members with notice if they plan to sever the employment relationship. This must include the minimum statutory notice, which depends on the employee’s length of service.

If the employee is over 45 and has worked for the employer for at least two years, an extra week is added to the notice period
Employers can opt to pay in-lieu of the notice period
Employment contracts may require a longer notice period. In some cases, this notice period is as long as a year

Employees are eligible to file an unfair dismissal application if they are covered by the national workplace relations system and have been employed for the minimum employment period. If the employer is a small business with less than 15 employees, the minimum employment period is one year. Otherwise, the minimum employment period is six months. Employees must be covered under an enterprise agreement or award. Additionally, the employee’s annual income must be beneath the income threshold.

If the application is successful, the employee may be reinstated. If reinstatement is not appropriate, compensation of up to six month’s pay may be ordered.

Severance payments may occur if an employer experiences redundancy. If an employer has decided that it no longer wants an employee to perform a particular job and terminates employment, the job becomes redundant. When redundancy occurs, severance payments may be required. Redundancy occurs when:

New technology replaces the need for someone to manually perform a job
A merger or takeover means the job is no longer necessary
The business reorganizes and the job is no longer necessary
The employer becomes bankrupt or insolvent
A downturn in business results in staff reduction

The amount of severance depends on how long the employee has worked continuously for the employer.

Severance pay is not mandatory if:

The employer has less than 15 employees
The employee has worked for less than one year continuously
The employee was an apprentice or casual employee
The employee is terminated due to serious misconduct
If the employee is employed for a specified period of time and termination ends at this time
If the employee works under an enterprise agreement or industry-specific redundancy scheme, which is detailed or incorporated in the award

Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Australia EOR can mitigate risk for foreign companies and provide guidance through this process.

hassle-free Australia compensation & benefits

Compensation & benefits

Australia compensation laws

The minimum wage in Australia is AUD 23.23 per hour (for a fulltime worker). This applies to all employees over 21 years old. Australia’s Pay and Classification Scale has an overview of the different pay rates across various states. If a certain position is not featured on the scale, an employee must receive the national minimum wage.

Compensation laws in Australia also stipulate a maximum work week of 38 hours. However, some positions will have greater flexibility to work extended hours.

Employees must receive a payslip within one working day of being paid. In most cases, pay is deposited into an employee’s bank account.

Minimum Wage Country Comparison Chart	(Per month in USD)
Switzerland (Geneva)	$4,000
Italy	$2,255
Australia	$4,931.97
Algeria	$156
Uzbekistan	$22

Guaranteed benefits in Australia

Employees in Australia have the right to certain benefits, which may or may not include healthcare. Whilst it is not compulsory, many employer’s will provide their employees with an allowance, rather than purchasing a private health insurance plan on their employees’ behalf. All employees with a taxable income over a specified threshold pay 2% of their income to Medicare, the nation’s primary healthcare system.

Employers must make compulsory contributions to state-based Workers’ Compensation schemes which cover employees for injuries suffered on the job.

Employees are eligible for a set number of days off – for vacation, personal leave, and maternity and paternity leave. All full-time employees must receive a minimum of four’s weeks annual leave per year.

Full-time employees are eligible for 10 day’s personal leave per year. There are also protections in place for parental leave, so long as an employee meets certain eligibility requirements.

Australia benefit management

For employers that elect to manage benefits payments themselves, this can be both costly and time-consuming. It’s also imperative for employers to be mindful of Australia’s compensation laws. Otherwise, they may find themselves being penalized with significant fines.

Rather than struggling to manage benefits payments yourself, you can partner with Horizons’ Australia EOR. We source, hire, and onboard your employees; and our global payroll division ensures that your employees receive the most competitive statutory and supplementary benefits.

Benefits and compensation restrictions

Two of the major Australian employment law restrictions that employers need to consider are Australia’s minimum wage and maximum work hours regulations. It is essential that employers stay abreast of these restrictions when hiring staff members. Horizons will assist your company to distribute benefits and compensation accurately and on-time. Our in-house recruitment experts will hire your employees; whilst our payroll division will distribute benefits and compensation, in compliance with Australia’s workplace regulations.

Australia Employer Of Record Peo

Navigation

Hire in Australia

Employment Laws

Employment contracts in Australia

Compensation & benefits

Frequently asked questions

Hire borderless talent with Horizons

Hire in Australia in 24h without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

Frequently asked questions

What is the difference between an Australia PEO and an Australia EOR?

Generally speaking, the terms “Australia PEO” and “Australia EOR” are used interchangeably.

Can an EOR in Australia hire both local and foreign nationals to work in Australia?

An EOR in Australia can feasibly hire both local and foreign nationals to work in Australia.

However, the ability of Horizons to sponsor your foreign national employee in Australia may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

How long does Horizons' Australia EOR service take to hire an employee?

In most cases, Horizons’ Australia EOR can hire & onboard your employee within 12 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Australia.

Is it possible to get a work visa in Australia?

It is possible to get a work visa in Australia. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Australia are limited, however—get started today to secure your employees’ visa spot.

Australia EOR & PEO

Start hiring in Australia

Simple, compliant hiring with Horizons EOR

Hire in Australia

Facts & Stats

EOR Platform

EOR Cost

Time-to-hire

Contracts

Local Benefits

180+ Countries

stay compliant with Australia labor laws

Employment Laws

Employment contracts in Australia

Fixed-term

Probationary period

Termination notice period

Severance

Important note

Indefinite

Probationary period

Termination notice period

Severance

Working hours in Australia

Australia payroll and employment taxes

Public insurance

Private insurance

Insurance for non-residents

Annual leave

Personal leave

Maternity and paternity leave

Maternity and paternity leave

Termination and severance

hassle-free Australia compensation & benefits

Compensation & benefits

Australia compensation laws

Guaranteed benefits in Australia

Australia benefit management

Benefits and compensation restrictions

Hire in Australia in 24h without your own local entity.

Frequently asked questions

180+

100+

24x5

130+

180+

100+

24x5

130+

The Global Workforce Payment Platform

What to expect when you connect with Horizons