Australia is an attractive option for global employers. With a highly skilled workforce, strong economic stability, and competitive salaries, it's no surprise that companies around the world are eager to tap into Australian talent. But hiring here means more than just posting a job ad.
To build a compliant, productive team, you need to know employment laws in Australia. From minimum entitlements and award conditions to workplace safety and dismissal protocols, the legal framework is detailed and dynamic.
With a thorough understanding, you can stay aligned with labour laws in Australia.
Key Governing Bodies and Legislation
Australia's employment framework operates under a unified national system coordinated by federal authorities. Here's who and what you need to know:
Fair Work Ombudsman and Fair Work Commission
Two federal agencies are responsible for overseeing workplace relations in Australia:
- Fair Work Ombudsman (FWO) – Provides advice, education, and enforcement services. Assists employers and employees with compliance and investigates complaints and wage underpayment issues.
- Fair Work Commission (FWC) – Oversees unfair dismissal cases, approves enterprise agreements, and reviews award conditions.
The Fair Work Act 2009
The two agencies above were created by the Fair Work Act of 2009, which outlines the rights and responsibilities of employers and employees. It also covers essential workplace regulations for wages, working hours, leave entitlements, and dispute resolution procedures.
State vs. Federal Employment Laws
As part of the Fair Work Act, most Australian states handed over their industrial relations powers to the Commonwealth Government. However, some state-specific regulations remain in place. For instance, certain public sector employees and small businesses in Western Australia continue to fall under the state's industrial relations system.
Minimum Employment Standards in Australia
If you want to hire employees in Australia, you'll have to meet baseline employment standards. These are non-negotiable and apply across sectors.
National Employment Standards (NES)
The National Employment Standards (NES) outline 11 minimum entitlements for employees, including:
- Maximum 38-hour work week (plus reasonable additional hours)
- Four weeks of paid annual leave
- 10 days of personal/carer's leave
- Public holidays and parental leave
- Notice of termination and redundancy pay
Enterprise Agreements and Modern Awards
There are two main ways that businesses can set employment terms and conditions in Australia:
- Enterprise Agreements – Made between employers and their employees (or labour unions), these set the terms of employment. They must meet or exceed the minimum standards in the NES.
- Modern Awards – These apply to specific industries or job types. They set the minimum pay rates, working hours, and other conditions for employees.
Hiring Employees in Australia
Before you start hiring in Australia, you should understand the core requirements for employment contracts and visa compliance.
Employment Contracts and Types of Employment
Employment contracts must align with NES and relevant regulations. These clearly define hours, pay, benefits, and notice periods. Different types of employment include:
- Full-time
- Part-time
- Casual
- Fixed-term
Right to Work and Visa Considerations
When hiring a worker, you must ensure they have a valid visa or residency status that allows them to work in Australia. You can confirm their visa conditions using the Visa Entitlement Verification Online (VEVO) system.
If you plan to hire foreign workers, it's important to understand your legal obligations around sponsorship and work rights. Partnering with an Employer of Record (EOR) like Omnipresent can help you manage these responsibilities and stay compliant when employing international talent.
Employee Rights and Protections
Australian workers have strong protections, and failing to meet them can lead to legal consequences.
Working Hours and Overtime
The NES set the standard working week in Australia at a maximum of 38 hours. Employers may request additional hours, but these must be reasonable and may require overtime pay, depending on the applicable award or agreement.
Leave Entitlements
Employees in Australia are entitled to several types of leave:
- Annual Leave – Four weeks (five for certain shift workers)
- Sick/Carer's Leave – Ten days/year
- Parental Leave – Up to twelve months unpaid (plus a twelve-month extension)
- Compassionate, Family and Domestic Violence Leave – Varies based on the circumstances
Workplace Health and Safety (WHS)
Safe Work Australia oversees workplace health and safety in the country. Essentially, employers must identify and manage risks to provide a safe and healthy work environment for all staff.
Healthy work environments must consider both physical and mental health, as well as details like proper equipment and ergonomic workspaces.
Termination and Redundancy Regulations
In Australia, employee terminations must be handled with care and align with legal requirements.
Notice Periods and Final Pay
If you want to conclude an employee’s contract, you have to provide written notice. The length of the notice period generally depends on how long the employee worked for you, but it typically ranges from one to four weeks.
Unfair Dismissal Protections
If an employee feels they’ve been unfairly terminated, they may be eligible to file a claim if they’ve worked for a business for at least six months (or 12 months for small businesses).
To stay compliant, ensure your dismissals are valid and follow a fair and transparent process.
Compliance Tips for Global Employers
Operating across borders adds complexity to your business processes. If you’re hiring in Australia, these two important strategies can help you minimise risk and maintain compliance.
1. Stay Updated on Law Changes
Employment laws in Australia can change frequently. Employers can stay informed by:
- Following FWO and FWC newsletters and alerts
- Subscribing to Safe Work Australia for WHS updates
Monitoring these sources will help you respond quickly to legislative changes and maintain ongoing compliance.
2. Partner with an EOR to Mitigate Risk
Working with an EOR can significantly reduce compliance risk, especially for companies operating across multiple jurisdictions.
An EOR like Omnipresent provides local legal expertise, manages payroll and employee benefits, and ensures that every employment contract and process meets Australian requirements.
