Australia boasts a skilled workforce powered by robust educational policies and a solid education system. To tap into this labor pool, partnering with an Australian Employer of Record (EOR) is helpful. EORs help employers hire talent globally without a local entity.

By partnering with an EOR in Australia, employers can easily sail over compliance and complicated labor laws by offloading all administrative hurdles onto their EOR.

This is because Australia, albeit its friendly business policies, has several laws in place to protect the rights of its workforce. In order to compliantly hire from the country, employers need to be aware of local labor laws and collective bargaining agreements, if any. 

For foreign employers like you, this can be an uphill battle. To tackle wave after wave of employment laws, will not be easy. 

For example, employers in the USA are not required by law to provide paid vacation or holidays. However, for your Australian workers, you must offer a minimum of four weeks of paid annual leave. Another tough nut to crack is Australia’s Superannuation Fund; a retirement benefit funded by both employers and employees. This is similar to the 401K in the USA, but mandatory.

An Australian EOR like Gloroots, can help global employers hire local talent without a registered entity and tackle aforementioned labor laws compliance with ease.

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PEOs usually have two pricing models: fixed and variable. In the fixed model, a transparent fee is charged per employee each month.

Gloroots follows the same approach. Our Australia pricing starts at a competitive rate. The final cost depends on the employment laws of the location.

Our pricing makes employee spending effective. When you hire through Gloroots, you get HR support, benefits management, and a live dashboard for tracking spending in real-time.

Key Metrics For Foreign Employers

Here are a few factors for you to reflect upon, before you consider hiring in Australia.

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‍Source: The Global Talent Competitiveness Index 2022

As you build your team, hiring the right people for the right roles at the right time is crucial. In Australia, employers need local setup and resources for compliance, payroll, taxes, and benefits – it's quite complex.

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With Gloroots' global Employer of Record (EoR) service, you can offload tasks like payroll, tax, benefits, and compliance. This way, you can focus on what truly counts: your employees and growing your business.

"Misclassification of employees" means wrongly categorizing workers by employers. It's when they treat someone as a contractor, skipping laws and benefits they should get as employees. Using Gloroots' PEO/EOR in Australia lowers misclassification risks. They handle rules, proper categorization, correct payroll, and full benefits. You focus on your main work while experts manage employment stuff.

In 2017, Australia launched a new foreign policy to strengthen its economy, security, and international relations. This helped Australia consistently rank 14th in the ease of doing business index. Corporate tax rates are 20%-30%.

Australia's stable political and social conditions have led to a GDP of $1.5 trillion and steady 3.3% growth. Australians have good disposable income and spending habits, which businesses can tap into.

Setting up in Australia is practical. While the government makes starting and growing a business easy, challenges like compliance, labor laws, and payrolling exist.

When hiring in Australia, consider Gloroots. We handle complexities like local entity setup and compliance. For example, employment contracts must include a whistleblower policy. With us, you focus on growth while we handle employment intricacies.

Employment Contract

In Australia, there is a clear distinction in legislation between fixed-term employment contracts and permanent employment contracts. While not mandatory by law, it is considered best practice to establish a written employment contract that delineates the fundamental terms of employment. These terms typically include:

1. Identification of both the employer and employee.

2. Commencement date of employment (and duration for temporary contracts).

3. Description of the workplace.

4. Specification of the position, including duties and responsibilities.

5. Outline of the base salary and any additional compensation and benefits.

6. Clarification of the working hours.

7. Determination of the total number of holidays and leave entitlements.

8. Indication of the notice periods required for employment termination.

9. Mention of any probationary period if applicable.

10. Reference to relevant industry awards or agreements.

By documenting these essential details in an employment contract, both employers and employees can have a clear understanding of their rights and obligations, fostering transparency and minimizing potential disputes.

It's important for employers to understand the intricacies of these programs before making a hire. This might sound overwhelming, but it doesn't have to be. A solution like Gloroots eliminates the barriers for you. With Gloroots' Employer of Record offering, hiring and managing employees globally is a piece of cake.

Get an overview of what you need to know when hiring in Australia. Contact us.

Overtime:

In accordance with the 2009 Fair Work Act, employers have the right to ask their employees to work a "reasonable" amount of overtime without being obligated to provide compensation. However, specific industrial awards may impose the requirement of overtime payment when an employee exceeds 38 hours of work in a single week. These awards typically set the guidelines for overtime pay, ensuring that employees are fairly remunerated for their additional work hours.

Minimum Wage:

As of July 1, 2022, Australia's minimum wage is set at AUD 21.38 per hour or AUD 812.60 per week, based on a standard 38-hour workweek.

Sick Pay:

In Australia, all employees are granted ten days of combined sick and carer's leave annually, which can be utilized for personal illness or to attend to childcare and family emergencies. Throughout this period, employees are entitled to their regular wages.

Tax and Social Security contribution:

Termination Process

Termination of an employee in Australia requires written notice from the employer, who may opt to allow the employee to work during the notice period or provide payment instead. Notice periods and severance pay can be subject to negotiation through employment agreements.

Severance Pay

Severance pay in Australia depends on the length of the employee's service. Employees with less than one year of service are not eligible for severance pay.

Severance pay is reduced to twelve weeks for employees with at least ten years of continuous service, based on a 2004 Redundancy Case decision by the national Australian Industrial Relations Commission.

Notice Periods

The duration of the notice period for employee termination in Australia is contingent upon the employee's tenure within the company.

Probation Periods

The probation period's length, which occurs at the beginning of employment, is determined by the employer and typically lasts between three and six months in Australia.

Minimum Employment Period

As per the Australian Fair Work Act, employees must complete a Minimum Employment Period before having access to an unfair dismissal claim in case of termination. This period is six months for companies with more than 15 employees and 12 months for small businesses with fewer than 15 employees.

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR, and similar data protection. If it is painstaking to set up infrastructure and kick-start your hiring, monitoring the ever-changing compliance landscape is another uphill task. Gloroots helps you minimize all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. They do this by helping you generate employment contracts, on-time payments, and compliant benefits while you focus only on screening talent. Our promise is a stress-free global employment experience for you and your employees. 

Contact our experts today to kickstart your global hiring campaign.