Employer of Record in Australia

An Employer of Record in Australia is the legal employer on paper, managing payroll, tax withholding, and compliance obligations on your behalf.

The specific compliance challenge is real. Australia has over 100 industry-specific Modern Awards under the Fair Work Act, plus superannuation obligations and payroll tax rates that vary by state.

• EOR hiring takes days; setting up a Pty Ltd entity takes 4 to 6 weeks.
• Superannuation rises to 12% of ordinary earnings from July 2025.
• Standard notice periods run 1 to 4 weeks, depending on employee tenure.
• The national minimum wage is AUD 26.44 per hour from July 2026.

This page covers hiring options, employment law, cost structures, onboarding steps, and recent regulatory changes relevant to employers entering Australia.

Gloroots operates as an EOR provider in Australia. This guide is written to help you find the right hiring path, whether that involves Gloroots or another approach.

What Is an Employer of Record in Australia?

An EOR in Australia is the entity that signs employment contracts, remits PAYG withholding to the ATO, pays superannuation contributions, and holds all employer liabilities under the Fair Work Act 2009.

Global companies use an EOR when testing the Australian market, scaling a team without a local entity, or hiring between one and five employees.

The workflow runs as follows: the client selects a candidate, the EOR issues a Fair Work-compliant contract, runs monthly payroll with PAYG withholding and superannuation, administers National Employment Standards leave entitlements, and the client manages the employee's daily work and performance. To understand the full mechanism, see how does EOR work.

Your Hiring Options in Australia: EOR vs. Entity vs. PEO vs. Contractor

There are four real paths for hiring in Australia: EOR, a Pty Ltd entity, PEO co-employment, and independent contractor. Each carries distinct compliance ownership and cost profiles.

EOR is appropriate for market testing, headcounts of 1 to 30 employees, situations with no local entity, or when speed to hire is the priority.

Entity setup makes sense for 50 or more long-term employees where the business has internal compliance resources and a committed market presence.

A note on PEO: a PEO co-employs workers but requires the client to already hold an Australian entity. It cannot enable hiring in Australia without one.

Explore Gloroots' EOR services to see how entity-free employment works in practice.

Path	Setup Time	Compliance Ownership	Cost Structure	Best For
EOR	Days	EOR provider	Per-employee monthly fee	1 to 30 employees, market testing, no local entity
Pty Ltd entity	4 to 6 weeks	Client company	Setup costs plus ongoing HR, legal, and payroll overhead	50+ long-term employees with permanent presence
PEO	Requires existing entity	Shared between PEO and client	Per-employee fee plus entity overhead	Companies already registered in Australia
Independent contractor	Immediate	Client (misclassification risk)	Contractor rate, no benefits	Short-term, project-based work with low misclassification risk

How to Hire in Australia Through an EOR: Step by Step

Hiring in Australia through an EOR follows six steps, from the initial hiring decision through to offboarding. Each step has a defined owner and a clear compliance checkpoint.

Step 1: Decide Whether EOR or Entity Is Right for Your Australia Hire

Assess headcount, timeline, and long-term commitment. EOR fits 1 to 30 employees or market testing. Entity setup fits 50 or more employees with a permanent presence. See the comparison table above for a full breakdown.

Step 2: Vet and Select an EOR Provider with an Australian Entity

Confirm the provider holds a direct Australian entity, not a partner network. Check for a proven Modern Award compliance record and AUD payroll processing with local support hours.

Step 3: Draft a Fair Work-Compliant Employment Contract

The contract must specify the role, salary in AUD, a 38-hour standard week, NES leave entitlements, the applicable Modern Award, a probation period of three to six months, and termination conditions.

Step 4: Complete Statutory Onboarding and Registration

Collect the TFN declaration, bank details, super fund nomination, and signed Fair Work Information Statement. Register the employee for PAYG withholding and activate Single Touch Payroll reporting with the ATO before the first pay event.

Step 5: Run Compliant Monthly Payroll with Super and PAYG

Process payroll at least monthly, withhold PAYG tax at progressive rates, contribute 12% superannuation to the employee's nominated fund, apply Modern Award overtime and penalty rates, and file an STP report to the ATO each pay cycle.

Step 6: Manage Offboarding and Exit Compliantly

Provide written notice per tenure-based statutory minimums, pay out accrued annual leave, remit final superannuation contributions, issue the final payslip, file the final STP report, and notify the Department of Home Affairs if the employee holds a sponsored visa.

How to Choose the Right EOR in Australia

Not every provider that claims global coverage can execute compliantly in Australia. Six criteria separate capable providers from generic platforms when evaluating the best employer of record options for Australian hiring.

Australia's regulatory environment is specific. The Fair Work Act, over 100 Modern Awards, Single Touch Payroll, and superannuation obligations each require local expertise, not just software integrations.

Use the criteria below to assess any provider before signing a contract.

Local Legal Knowledge and Modern Award Compliance

The provider must identify and apply the correct Modern Award for each employee's industry and role. With over 100 awards in force, each carrying distinct pay scales and conditions, this requires proven local legal expertise.

Direct Entity Ownership vs. Partner Network

Confirm whether the provider employs workers through its own Australian entity. Direct ownership reduces data exposure and closes liability gaps that third-party partner networks create.

Support Model and Australian Time Zone Coverage

Verify that the provider offers dedicated support during Australian business hours (AEST/AEDT). A global helpdesk alone is insufficient for Fair Work queries and Modern Award interpretation.

Transparent and Itemized Pricing

Request a fully itemized fee schedule covering payroll processing, superannuation administration, compliance management, and onboarding. Flat-fee models, typically AUD 400-900 per employee per month, are easier to budget than percentage-of-salary models. Review Gloroots pricing for a transparent cost breakdown.

Data Security and Privacy Compliance

Confirm the provider processes payroll natively rather than uploading employee data to third-party aggregators. Ask whether a Data Processing Agreement (DPA) is available and how the provider complies with the Australian Privacy Act 1988.

Integration Capability and Onboarding Speed

Assess whether the provider's platform integrates with your existing HRIS and finance tools. A capable Australia EOR should complete statutory registration within 3-5 business days of engagement.

Workforce and Talent Pool in Australia

Australia has approximately 14 million workers, with a median age of around 38. The workforce is highly urbanized, internationally diverse, and English-speaking, with over 50% of 25-34-year-olds holding tertiary qualifications.

Strong graduate pipelines exist in STEM, healthcare, and business. Key talent hubs include Sydney (finance, fintech, IT), Melbourne (tech, healthcare), Brisbane (energy, mining), Perth (resources, engineering), and Adelaide (defence, biomedical).

Australia's work culture is collaborative, egalitarian, and informal in communication style. Employees expect strong work-life balance, and flexible or hybrid work arrangements are widely accepted across industries. Salary premiums vary by city: Sydney runs 15-25% above the national average, Melbourne 10-20% above, Brisbane 5-10% above, Perth at or above average with a fly-in fly-out resource sector premium, and Adelaide at or slightly below the national average. Companies hiring across multiple Australian cities can compare regional talent costs against markets such as employer of record Singapore when planning Asia-Pacific workforce strategy.

Workforce Characteristic	Details
Workforce Size	~14 million workers (2024)
Median Age	~38 years
English Proficiency	English is the native and sole business language
Top Talent Hubs	Sydney, Melbourne, Brisbane, Perth, Adelaide
Key Industries	Finance, Technology, Healthcare, Mining, Energy, Defence, Biomedical
Regional Salary Premiums	Sydney +15-25%, Melbourne +10-20%, Brisbane +5-10%, Perth at or above average (FIFO premium), Adelaide at or slightly below average

Employment Law Essentials in Australia

Australian employment law is governed by the Fair Work Act 2009 and the National Employment Standards (NES). Industry-specific Modern Awards set minimum pay rates and conditions on top of those standards.

Employment Contracts

All employment contracts in Australia must meet NES minimums and any applicable Modern Award. Fixed-term contracts additionally require a Fixed Term Contract Information Statement (FTCIS) provided to the employee before the contract is signed.

Casual employees receive a 25% casual loading in lieu of leave entitlements and have the right to convert to permanent employment after 12 months of regular work under the NES.

Restraint of trade and non-compete clauses are enforceable only where they protect a legitimate business interest and are reasonable in duration, typically one to three years, and geographic scope. Courts scrutinize these clauses closely.

Working Hours and Overtime

The standard working week is capped at 38 hours. Overtime rates are set by the applicable Modern Award and range from 150% to 200% of base pay.

Minimum Wage

From 1 July 2026, the national minimum wage is AUD 26.44 per hour or AUD 1,004.90 per 38-hour week, as set by the Fair Work Commission National Minimum Wage Order 2026.

Modern Awards frequently set higher industry-specific minimums. Under many awards, a 17.5% annual leave loading also applies when employees take annual leave, adding to the employer's cost beyond the base four-week entitlement.

Leave and Statutory Benefits in Australia

The NES sets minimum leave entitlements for all national system employees. Modern Awards and enterprise agreements may provide additional entitlements above these floors.

Leave Type	Entitlement	Pay Rate	Key Conditions
Annual Leave	4 weeks (5 for shift workers)	Base pay plus 17.5% loading under many Modern Awards	Accrues progressively; can be taken by agreement
Personal/Carer's Leave	10 days per year	Full pay	Unused leave rolls over; covers illness and caring responsibilities
Compassionate Leave	2 days per occasion	Full pay	Death or life-threatening illness/injury of immediate family or household member
Family and Domestic Violence Leave	10 days per year	Full pay	Available from February 2023 (large employers) and August 2023 (small employers)
Parental Leave (unpaid)	Up to 24 months	Unpaid	Eligible employees with 12 months continuous service
Government Paid Parental Leave	18 weeks (primary caregiver); 2 weeks (secondary carer)	National minimum wage (government-funded)	Subject to income and work tests
Community Service Leave	Jury duty: make-up pay for first 10 days; voluntary emergency management: unpaid	Varies	Applies to jury duty and voluntary emergency management activities

Annual Leave

Employees are entitled to four weeks of paid annual leave per year under the NES, or five weeks for shift workers. Under many Modern Awards, a 17.5% annual leave loading applies when leave is taken.

Sick Leave

Employees receive 10 days of paid personal and carer's leave per year under the NES. Unused leave accumulates year to year. A separate NES entitlement provides 10 days of paid Family and Domestic Violence Leave annually.

Maternity and Paternity Leave

Australia's government-funded Paid Parental Leave scheme provides 18 weeks paid at the national minimum wage for primary caregivers. Fathers and secondary carers receive 2 weeks of paid leave. Both are funded by the Australian Government. Unpaid parental leave extends to 24 months total under the NES.

Public Holidays

Australia has 8 national public holidays plus state-specific additions, bringing the total to 11 to 13 days depending on the state or territory.

Payroll, Tax and Statutory Contributions in Australia

Payroll in Australia runs at minimum monthly, though fortnightly cycles are standard. Employers must manage PAYG withholding, superannuation contributions, Single Touch Payroll (STP) reporting, and state payroll tax.

From 1 July 2026, the Payday Super reform requires employers to pay superannuation on each payday rather than quarterly. Employers and EOR services providers must update payroll systems before this date to remain compliant.

The superannuation rate is 11.5% for 1 July 2024 to 30 June 2025, rising to 12% from 1 July 2025 onwards. Workers' compensation insurance is state-based, mandatory, and ranges from 0.5% to 3% of wages depending on industry risk and state.

Income tax rates (2024-25 residents)

Income Bracket (AUD)	Tax Rate
$0 to $18,200	Nil
$18,201 to $45,000	19%
$45,001 to $120,000	32.5%
$120,001 to $180,000	37%
Over $180,000	45%

Employer and employee contributions

Contribution Type	Rate	Paid By	Frequency
Superannuation (2024-25)	11.5%	Employer	Payday (from July 2026); quarterly until then
Superannuation (from July 2025)	12%	Employer	Payday (from July 2026); quarterly until then
PAYG Withholding	Per tax slab above	Employer withholds from employee	Each pay cycle
Workers' Compensation	0.5% to 3% of wages	Employer	Annual premium

State payroll tax rates and thresholds

State/Territory	Rate	Annual Threshold (AUD)
ACT	6.85%	$2,000,000
NSW	5.45%	$1,200,000
NT	5.5%	$1,500,000
QLD	4.75% to 4.95%	$1,300,000
SA	4.95%	$1,500,000
TAS	4% to 6.1%	$1,250,000
VIC	4.85%	$700,000
WA	5.5%	$1,000,000

Work Visas and Permits in Australia

Non-citizens must hold a valid work visa to be employed in Australia. Most employer-sponsored visas require the employer to be a registered Australian entity or an approved sponsor with the Department of Home Affairs.

An EOR with an established Australian entity can act as the approved sponsor for TSS (Subclass 482) and ENS (Subclass 186) visas. This allows companies without a local entity to employ international talent in Australia without setting up their own corporate structure. Gloroots manages sponsorship obligations as part of its EOR services.

Common work visa types in Australia

Visa Type	Purpose	Validity
Temporary Skill Shortage (Subclass 482)	Employer-sponsored skilled workers in shortage occupations	Up to 4 years
Employer Nomination Scheme (Subclass 186)	Permanent residence for sponsored skilled workers	Permanent
Skilled Independent (Subclass 189)	Points-tested visa for skilled workers without a sponsor	Permanent
Working Holiday (Subclass 417/462)	Short-term work for eligible passport holders aged 18 to 35	Up to 3 years

Equity and ESOP Consulting in Australia

Equity compensation, including Employee Share Schemes (ESS), is common in Australia's technology, fintech, and startup sectors, particularly in Sydney and Melbourne.

Under the ATO's ESS rules, employees are taxed on the discount received when shares or options vest or are exercised. The start-up concession allows eligible companies to defer tax until the point of sale, but strict eligibility criteria apply. Companies must meet ATO requirements on age, revenue, and unlisted status to qualify.

Employers using an EOR services model should confirm how equity grants are structured and disclosed, as the EOR is the legal employer and must be aligned on ESS reporting obligations to the ATO.

Misclassification Risk in Australia

Misclassifying an employee as a contractor in Australia exposes employers to back-pay liability, unpaid superannuation, and sham contracting penalties under the Fair Work Act.

Courts and the Fair Work Commission assess worker status using these criteria:

• Direction and control: the employer directs how, when, and where the worker performs tasks, indicating employment.
• Integration into operations: the worker is embedded in the business rather than operating as an independent service provider.
• Regular wage versus project invoice: employees receive recurring wages; contractors invoice per project or deliverable.
• Inability to subcontract or delegate: a worker who cannot substitute someone else is more likely an employee under law.

Penalties for misclassification include:

• Back pay of wages, accrued leave entitlements, and superannuation contributions at the current 12% rate.
• ATO liability for unpaid PAYG withholding, including interest and administrative penalties on outstanding amounts.
• Civil penalties up to AUD 93,900 per breach for corporations under the Fair Work Act.
• Sham contracting offences carry additional fines where the employer knowingly misrepresented the employment relationship.

An EOR services arrangement eliminates misclassification risk by employing workers under compliant contracts with full statutory entitlements from day one.

Hiring, Onboarding, Termination and Offboarding in Australia

Hiring in Australia requires employers to follow the Fair Work Act at every stage of the employment lifecycle, from contract preparation through final payslip. The sections below cover onboarding, termination, and offboarding in sequence.

Onboarding

Before Day One

• Collect full legal name, date of birth, Australian mailing address, bank account details, and agreed salary in AUD.
• Obtain a completed Tax File Number (TFN) declaration form from the employee before the first pay event.
• Confirm the employee's superannuation fund nomination or set up a default MySuper account if none is provided.
• Prepare a Fair Work-compliant employment contract referencing the applicable Modern Award for the role.

Day One

• Deliver the Fair Work Information Statement (FWIS), which is legally required on or before the employee's first day.
• Deliver the Casual Employment Information Statement if the worker is engaged on a casual basis.
• Confirm that Single Touch Payroll (STP) registration with the ATO is active before the first pay event is processed.
• Provide a workplace health and safety induction covering obligations under the Work Health and Safety Act 2011.

First Week

• Confirm payroll setup including the correct PAYG withholding rate based on the employee's TFN declaration.
• Verify the Modern Award classification and applicable pay rate for the employee's role and level.
• Set up leave accrual tracking for annual leave, personal and carer's leave, and long service leave entitlements.
• Provide access to company systems and confirm the IP and confidentiality agreement has been signed.

Beyond

• Run the first payroll with correct PAYG withholding, a 12% superannuation contribution, and any applicable award allowances.
• File the first STP report to the ATO on or before the pay date as required under reporting obligations.
• Confirm the superannuation contribution has been directed to the employee's nominated fund or the MySuper default.
• Schedule a three-month probation review in line with the terms set out in the employment contract.

Termination

Termination in Australia requires written notice based on tenure, ranging from one to four weeks, plus one additional week for employees over 45 with two or more years of service. Employers must document valid grounds and pay redundancy of four to sixteen weeks for eligible employees in businesses with fifteen or more staff.

Offboarding

Settlement

• Process the final salary payment covering all hours worked up to and including the employee's last working day.
• Pay out all accrued but unused annual leave in cash at the employee's ordinary rate of pay.
• Calculate and remit the final superannuation contribution to the employee's fund before the quarterly deadline, or each payday from July 2026 under Payday Super rules.
• Apply redundancy pay if applicable, calculated at four to sixteen weeks based on tenure for businesses with fifteen or more employees.

Documents

• Issue the final payslip itemizing base pay, leave payout, superannuation contribution, and any redundancy payment made.
• Provide a Statement of Employment if the employee requests one upon or after their last working day.
• Ensure final PAYG withholding is reported to the ATO via STP on the date of the final pay event.
• The employee can access their end-of-year payment summary through the myGov ATO portal after the financial year closes.

Exit

• Collect all company devices, access cards, and uniforms on or before the employee's last working day.
• Revoke system access, building access, and company email on the termination date without delay.
• Notify the Department of Home Affairs if the employee holds a sponsored visa, such as the TSS Subclass 482.
• Conduct an exit interview if company policy requires one. This is not a legal obligation but supports retention analysis.

What's New: Recent Regulatory Changes in Australia

The Fair Work Legislation Amendment (Closing Loopholes) Acts of 2023 and 2024 introduced significant changes to casual employment, contractor classification, and the right to disconnect, with staged commencement dates running through 2024 and 2025.

• Payday Super reform (effective 1 July 2026): superannuation must be paid each payday rather than quarterly. Employers must update payroll systems before this date.
• Right to Disconnect (effective 26 August 2024 for large employers, 26 August 2025 for small employers): employees may refuse unreasonable contact outside ordinary work hours.
• Casual employment definition tightened (effective 26 August 2024): a new statutory definition based on firm advance commitment applies, and casual conversion rights have been strengthened.
• Fixed-term contract limits (effective 6 December 2023): contracts are capped at two years or two renewals, and a Fixed Term Contract Information Statement (FTCIS) is required for all fixed-term engagements.
• National minimum wage increased to AUD 26.44 per hour, effective 1 July 2026, per the Fair Work Commission National Minimum Wage Order 2026.

Employers and EOR providers must audit payroll systems and employment contracts before 1 July 2026 to meet Payday Super and minimum wage obligations.

Costs and Financial Planning for Hiring in Australia

Total employment cost in Australia extends well beyond base salary. Superannuation, leave loading, workers' compensation, and state payroll tax all add to the employer's cost base.

Three costs are commonly underestimated. Annual leave loading of 17.5% applies under many Modern Awards as an additional cost on top of the standard 4-week leave entitlement. Workers' compensation insurance is mandatory and state-based, ranging from 0.5% to 3% of wages. State payroll tax applies at rates between 4.75% and 6.85% once wage thresholds are exceeded, and thresholds vary by state.

From 1 July 2025, the superannuation guarantee rate increases to 12% of ordinary time earnings. Budget planning should reflect this updated rate for all Australian hires.

For full details on how these costs compare across providers, see our guide on employer of record cost or review Gloroots pricing.

Cost Element	Direct Entity	Gloroots EOR
Superannuation (from July 2025)	12% of ordinary earnings, managed internally	12% managed and remitted by Gloroots
Annual leave loading (17.5%)	Employer calculates per applicable Modern Award	Gloroots applies correct award loading automatically
Workers' compensation (0.5%–3%)	Employer registers and manages state-by-state	Gloroots manages registration and compliance
State payroll tax (4.75%–6.85%)	Employer registers in each applicable state	Gloroots manages multi-state registration and remittance
Entity setup cost	ASIC, ABN, TFN, GST, PAYG registration required	No entity setup required
EOR fee	Not applicable	Flat monthly fee per employee (see pricing)

Common Challenges and How Gloroots Solves Them in Australia

Practical compliance challenges in Australia include Modern Award misapplication, Payday Super readiness ahead of July 2026, state payroll tax registration across multiple jurisdictions, and IP protection in employment contracts.

Each of these issues carries real legal and financial risk. The table below outlines how Gloroots addresses each one directly.

Challenge	How Gloroots Solves It
Modern Award misapplication	Gloroots identifies and applies the correct Modern Award for each role and employment classification.
Payday Super reform (July 2026)	Gloroots updates payroll systems ahead of the July 2026 deadline, ensuring super is paid on each payday rather than quarterly.
Multi-state payroll tax	Gloroots manages registration and remittance across all states where the employer's wage bill exceeds applicable thresholds.
IP and restraint of trade clauses	Gloroots drafts compliant confidentiality and non-compete provisions aligned with Australian contract law.
Workers' compensation compliance	Gloroots manages state-based insurance registration and ongoing compliance obligations for each jurisdiction.

These are not edge cases. Modern Award misclassification and payroll tax non-compliance are among the most common Fair Work and ATO audit triggers for foreign employers operating in Australia.

Why Gloroots Is a Strong EOR Partner in Australia

Gloroots is well suited for global companies hiring between 1 and 30 employees in Australia without a local entity, particularly those in technology, healthcare, finance, or professional services who need compliant onboarding within days.

Gloroots operates through a direct Australian entity, applies the correct Modern Award for each hire, manages the Payday Super transition ahead of the July 2026 deadline, and processes payroll in AUD with Single Touch Payroll Phase 2 compliance.

Gloroots manages the full employment lifecycle: contracts, payroll, superannuation, leave, and offboarding, all under one platform.

For companies testing the Australian market before committing to a Pty Ltd entity setup, an EOR removes the cost and delay of ASIC registration while preserving the option to transition to a direct entity later.

Buyers should compare Gloroots against other providers on Modern Award compliance depth, direct entity ownership, and Payday Super readiness before making a final decision. Gloroots also supports EOR for startups and EOR for mid-market companies with country-specific pricing and human-led account management.

Conclusion

Australia's Payday Super reform on 1 July 2026 is the single most time-sensitive compliance change for employers hiring in the market today. Payroll systems must be updated before that date or employers face penalties on every pay cycle.

Companies evaluating an EOR for Australia should prioritize Modern Award compliance capability, direct entity ownership, and Payday Super readiness. Compare at least two providers before committing to a contract. For companies also considering other English-speaking markets, the employer of record UK guide covers a comparable regulatory environment with its own distinct compliance requirements.

Frequently Asked Questions About Employer of Record in Australia

Is it legal to use an Employer of Record in Australia?

Yes. Using an EOR is fully legal in Australia. The EOR becomes the legal employer under the Fair Work Act, issuing compliant contracts and managing payroll, superannuation, and National Employment Standards entitlements.

The client company retains full control over the employee's day-to-day work and performance management. The EOR assumes all statutory employer obligations.

How much does an Employer of Record in Australia cost?

EOR fees for Australia typically range from USD 299 to USD 699 per employee per month on flat-fee models. Percentage-of-salary models, ranging from 8% to 20% of gross wages, are also offered by some providers.

Total employer cost also includes 12% superannuation (from July 2025), state payroll tax, workers' compensation insurance, and any applicable Modern Award allowances. See our full breakdown of employer of record cost for a detailed comparison.

How quickly can I hire an employee in Australia through an EOR?

A capable EOR can complete statutory onboarding, including TFN declaration, super fund setup, Fair Work Information Statement delivery, and Single Touch Payroll registration, within 3 to 5 business days.

This compares to 4 to 6 weeks for a company to register a Pty Ltd entity with ASIC and independently complete ABN, TFN, GST, and PAYG withholding setup.

What employee benefits are mandatory in Australia?

Mandatory benefits under the National Employment Standards include 4 weeks annual leave, 10 days paid personal and carer's leave, 10 days paid Family and Domestic Violence Leave, and government-funded parental leave of 18 weeks for primary carers and 2 weeks for secondary carers.

Employers must also contribute 12% superannuation and observe public holiday entitlements. Many Modern Awards add annual leave loading of 17.5% and industry-specific allowances on top of these statutory minimums.

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

An EOR is the sole legal employer and requires no local entity from the client. It assumes all employer liabilities under the Fair Work Act, including payroll, superannuation, and leave obligations.

A PEO co-employs the workforce but requires the client to already hold an Australian entity. For companies entering Australia without a local presence, only an EOR model applies.

Can an EOR sponsor work visas in Australia?

Yes, provided the EOR holds approved sponsor status with the Department of Home Affairs. An EOR with an Australian entity can sponsor employees on the Temporary Skill Shortage (TSS) Subclass 482 visa and the Employer Nomination Scheme (ENS) Subclass 186 visa.

Companies without a local entity cannot independently sponsor work visas in Australia. Visa sponsorship capability should be confirmed with any EOR provider before signing a contract.

Do employees hired through an EOR in Australia receive the same entitlements as directly employed staff?

Yes. Employees hired through an EOR receive all National Employment Standards entitlements, applicable Modern Award conditions, and statutory benefits including superannuation, paid leave, and redundancy pay.

The EOR is the legal employer and is fully liable for compliance. The client company's day-to-day management instructions do not reduce the employee's statutory entitlements under the Fair Work Act.