Employer of Record Australia
Employer of Record Australia
Partnering with an Employer of Record in Australia streamlines hiring and management, reduces administrative burden, and promotes business growth and success.
Currency
Australian dollar (AUD)
Population
26 Million
Capital City
Canberra
Minimum Wage
AUD 23.23 hourly rate
Local Language
English
Working Hours
38 hours per week
When you hire in Australia the Employer of Record in Australia acts as the legal employer for your workers, taking care of the entire employment life cycle. They also offer guidance for international companies expanding into the Australian market, ensuring compliance with employment laws.
- Oversees all employment aspects
- Acts as a legal employer
- Simplifies hiring
- Compliantly employing a worker
How does an Employer of Record Australia work?
Agility
We supervise the legal aspects of hiring workers, including managing HR, benefits, payroll, and taxes.
Company
Focuses on core business activities. Directs assigned employee’s tasks and performance.
Employee
Completes the assigned work, just like any other employee.
Cost Calculator
Use our easy calculator to explore the employment costs in Australia. Share a bit more information, and we’ll deliver a detailed salary breakdown straight to your inbox.
Payment Frequency
In Australia there is no specific requirements regarding payroll, most workers are paid monthly. But some are also paid weekly and bi-weekly
Employee Tax – 2% to 47%
- Medicare levy: 2%
- Income tax: begin paying when earning over $18,200
Employer Tax – 14.24% to 19.35%
- Payroll tax: 0%- 6.85%
- Superannuation: 11% (increasing by 0.5% each year)
Probation Period
Australian employees are typically subject to a 3 or 6 month long probationary period. However there is no prescribed probationary period under Australian laws.
Employment Law
- Employment Contract: The legal agreement outlining your terms and conditions.
- Payslip: A record of your wages and deductions.
- Flexible Work Arrangements: Options for flexible work hours or locations.
- Equal Opportunity: Protection from discrimination based on protected characteristics.
- Fair Work Information Statement: A document providing essential information about your employment.
- Protection from Adverse Actions: Safeguards against unfair treatment by your employer.
- Modern Awards: Industry-wide agreements setting minimum standards.
- Redundancy Payment: Compensation if your job becomes redundant.
- Union Membership: The option to join a union for representation and support.
Employee Termination
1-4 week notice period.
Employees who have been with a company for 6 months – 12 months for companies with less than 15 employees- are protected from unjust termination.
After 1 year of service, employees are entitled to redundancy pay, determined by their length of service, given in addition to required notice period.
Employee Benefits
Statutory Benefits
- Medicare: Australia’s universal healthcare system.
- Superannuation: A compulsory retirement savings scheme.
- Workers’ Compensation Insurance: Coverage for injuries or illnesses related to your work.
- Flexible Work Arrangements: Options for flexible work hours or locations.
- Personal Carer’s Leave: Paid leave to care for a family member or dependent.
Common Additional Benefits
- Life and Disability Insurance: Coverage for life-threatening events or disabilities.
- Long-Term Disability: Benefits to provide income if you become unable to work due to a disability.
- Employee Assistance Program (EAP): A confidential counseling service for employees and their families.
- Childcare Places and Subsidies: Assistance with childcare costs.
- Additional Annual Leave: Extra vacation time beyond the statutory minimum.
- Private Healthcare: Supplementary health insurance for additional medical services.
- Paid Parental Leave: Paid time off for new parents.
- Commuter Allowance: Financial assistance for transportation costs.
- Career Development Allowance: Support for professional development and training.
Statutory Leave
FAQ
Think of it like this: Agility EOR becomes the legal employer of your employees, taking care of all the paperwork and compliance headaches.
Agility EOR
- We manage the onboarding process and ensure everything’s in order before your employee starts
- We make sure your employees are treated fairly and compliantly in their relevant territory
- We take care of all HR matters, and can answer any and all HR queries you may have e.g. maternity/paternity leave, holidays, sick pay, and more
- We provide compliant contracts, process local payroll, and file taxes
- We issue payslips and handle payments to the employee and authorities
Your Company
- You find and manage your employees’ daily tasks
- You support their development through their work
- You follow our guidance on employment laws and best practices
- You ensure payroll bills are paid to Agility EOR on time
Benefits of using an Employer of Record (EOR)
- Faster and easier hiring: No need to set up your own legal entity.
- Reduced risk and compliance burden: We handle the legal and administrative complexities.
- More time and resources: Focus on your core business while we manage your employees.
There are various ways to employ people in Australia, each with differing levels of costs and compliance.
Employee is employed by you and paid by you from your overseas Company
Pros: Seems to be the most cost-effective and simple option.
Cons: Unable to meet the mandatory social security contributions, and Australian employment law will govern the employee.
Entity Set-up
Pros: This option could be the most cost-effective for employing a substantial number of personnel, typically more than 15.
Cons: approach often befalls impractical for those employing less than 15 workers. Determining a legal business body and maintaining strict compliance with Australian employment and tax regulations can be a significant expense and time stressor, particularly for smaller operations.
Using an Employer of Record
Pros: In Australia using an Employer of Record service is the most time- and cost-effective way to handle payroll, HR, and compliance, especially for teams of fewer than 15 employees.
Cons: It can be expensive for larger teams, and selecting the right Employer of Record provider can be tricky.
Hire a contractor in Australia
Pros: This solution is cost-effective when the worker isn’t exclusive to your company and is able to send a substitute to cover their duties on off days.
Cons: Engaging a full-time employee exclusively committed to your company without the appropriate employment classification constitutes a legal violation in Australia. Penalties for such misclassification can range from fines to criminal charges.
In Australia, a worker solely dedicated to your company and whose duties and tasks are dictated by your organization must be classified as an employee. Failing to do so constitutes a breach of Australian employment law.
Misclassifying an employee in Australia can lead to large fines, the requirement to pay outstanding holiday pay and social security contributions, the probable need to establish a local presence, and even legal action from the employee for breached employment rights.
But, as long as the worker is working for other companies, is able to decide how to do their own work, and can send another contractor in their absence, it is possible.
The preliminary steps to forming your business in Australia involve registering it with the Commercial Register and obtaining a trade license from the relevant authorities.
The primary registration process appears simple, but several complexities add to the overall setup:
- Establishing a physical office for tax purposes
- Opening an Australian bank account (often requiring in-person presence)
- Managing payroll software compliant with Australian regulations
- Fulfilling tax filing obligations
Hiring people in Australia involves specific legal obligations. Essentially, HR compliance ensures your company adheres to all employment and work practice regulations.
Why is this crucial? HR compliance in Australia is more than a formality; it protects both your employees and your business.
- Adhering to employment regulations guarantees fair treatment for your workforce, covering aspects such as sick leave, annual leave, minimum wage, and proper working hours.
- This helps create a positive work environment and reduces the risk of financial penalties, legal issues, and potential lawsuits due to non-compliance.
Partnering with Agility EOR as your designated Employer of Record (EOR) in Australia streamlines the complexities associated with tax and social security responsibilities. By entrusting us with this role, all tasks related to employee filings and contributions are expertly handled, guaranteeing full adherence to regulatory requirements. This arrangement allows you to dedicate your attention to the operational aspects of your business, secure in the knowledge that administrative and compliance matters are being effectively managed.
With Agility EOR, you can rest assured that your workforce is compliant with regulations, freeing you to drive your company forward.
In Australia, Agility EOR takes care of all legal compliance issues, payroll, benefits administration, and other HR functions for your organization. This comprehensive service ensures smooth business operations and minimizes risks.
By trusting Agility EOR with these tasks, you can focus on leading your team to success, knowing that all legal and administrative tasks are expertly handled. This allows you to concentrate on strategic decision-making and achieving business goals.
In Australia, both employers and employees contribute to the social and tax system.
Employers: Payroll tax and Superannuation
Employees: Income tax and Medicare levy
Employees working under an Australian Employer of Record benefit from legal protections and receive a standard employment contract. This includes statutory benefits like maternity leave, annual leave, and sick pay, along with applicable tax credits. It’s important to note that the Australian public healthcare system provides coverage for all residents, not just employees.
Agility EOR alleviates your HR compliance concerns:
Reliable Partners: Agility EOR works closely with top Australian employment lawyers and consultants to guarantee that your employment agreements and other necessary paperwork fully comply with local laws.
Comprehensive Expertise: We possess a thorough comprehension of the nuanced details of Australian employment regulations, covering areas such as payroll, social security, data protection, notice periods, and remote work guidelines.
Prompt Support: In the event of any complications, our internal team is readily available to provide immediate assistance and guidance
Wondering if expanding in Australia is right for you?
Read on or speak to a member of our team now
Australia Employer of Record Benefits
When you choose Agility EOR to expand in Australia, we guarantee an EOR Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Australia so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs – no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Australian authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Australian payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.
Download our full Australia Employment Guide
Find out all about employing in Australia
Get in touch
Our team of Employer of Record experts are ready to discuss your global expansion requirements. Fill out your details in the form provided and we will be in touch as soon as possible.