Employment contracts should outline salary, benefits, working hours, and key responsibilities. While not always legally required to be in writing, written contracts are strongly recommended to avoid disputes and ensure compliance with Australian labor laws.
Employer of Record (EOR) Australia
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Simple & Compliant Hiring with Globaine's Employer of Record (EOR)
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Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in Australia is handled efficiently and in full compliance with local regulations.
Fast Time-To-Hire
Onboard employees in as little as 12 hours.
Cost-Efficient
The most affordable solution on the market, saving you time and money.
Compliant Contracts
We draft bilingual contracts compliant with Australian labor law.
Global Reach, Local Expertise
Hire not just in Australia, but in over 180 countries through our global platform, allowing you to grow internationally without entity setup. Globaine’s team provides the local expertise you need to ensure every hire is compliant, efficient, and hassle-free.
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in Australia
An Employer of Record (EOR) is a third-party organization that manages all legal and administrative responsibilities of employing staff on behalf of another company. This includes payroll, tax compliance, employment contracts, benefits administration, and adherence to local labor laws. An EOR allows businesses to hire employees in new countries without establishing a local entity, enabling faster and compliant global expansion.
Choosing an Employer of Record (EOR) in Australia ensures compliance with Australia’s strict labor laws, reduces administrative workloads, and enables rapid business growth without needing a local entity. EOR services in Australia take care of payroll, benefits, tax filings, and employment contracts, ensuring full legal compliance. This enables businesses to focus on expanding while managing employees efficiently across Australia.
Written contracts are particularly important for fixed-term, casual, or part-time employees. A written contract ensures clarity around employment terms, reducing the risk of legal disputes.
Salaries in Australia must be expressed in Australian dollars (AUD) and can be presented as annual or hourly rates. The contract should also cover superannuation contributions and potential bonuses.
Clauses around confidentiality, non-compete agreements, and flexible work arrangements should be included where applicable to protect the business and clearly define employee expectations.
in Australia
1. What are the key steps in employee onboarding in Australia?
Employees must provide a Tax File Number (TFN), proof of identity, and bank details. Employers must also provide a Fair Work Information Statement and register employees with superannuation funds.
2. Are pre-employment medical checks required in Australia?
While not mandatory for all roles, certain industries, like construction and healthcare, may require medical checks to ensure the employee’s fitness for the job.
3. What documents are required for onboarding in Australia?
Employees must provide their TFN, a signed employment contract, and their superannuation fund details. This ensures compliance with Australia’s tax and pension regulations.
4. Why businesses in Australia need EOR services?
5. How does EOR in Australia different from other countries?
in Australia
Employees in Australia are generally paid on a weekly, fortnightly, or monthly basis. Employers must withhold income tax and contribute to superannuation (retirement savings).
Employers must account for any work-from-home expenses and provide allowances where required, ensuring compliance with tax regulations around home office setups.
As of 2024, the minimum wage is AUD $23.23 per hour or AUD $882.80 per week for full-time employees. It is essential to stay updated as minimum wages are reviewed annually.
Accurate payrollmanagement ensures that employers meet tax and superannuation obligations, avoiding potential fines or legal issues with the Australian Taxation Office (ATO).
in Australia
1. What are the income tax rates in Australia?
Australia has a progressive income tax system, with rates starting at 19% for individuals earning over AUD $18,200 and going up to 45% for those earning above AUD $180,001.
2. How does the tax system apply to non-residents in Australia?
Non-residents in Australia are taxed at a flat rate starting at 32.5% on all Australian-sourced income, with no access to the tax-free threshold available to residents. They only pay taxes on income earned within Australia.
3. When should tax returns be submitted in Australia?
Annual tax returns for the fiscal year (ending June 30) must be lodged by October 31. Employers are responsible for PAYG (Pay As You Go) withholding and reporting on a monthly or quarterly basis.
4. What social security contributions are required in Australia?
Employers must contribute at least 11% of an employee’s earnings into a superannuation fund. These contributions are mandatory and are in addition to the employee’s salary.
in Australia
Employees in Australia are entitled to a minimum of four weeks (20 working days) of paid annual leave for each year of service, calculated based on their ordinary hours of work. This entitlement accrues progressively throughout the year and is usually taken at a time agreed upon between the employer and employee.
Employees can generally start using their accrued annual leave after completing 12 months of continuous service with their employer. However, some employers may allow employees to access their leave entitlements sooner under specific circumstances or through mutual agreement.
In Australia, eligible employees are entitled to 12 months of unpaid parental leave, which can be taken by either parent, with a right to request an additional 12 months. Additionally, primary caregivers may qualify for government-funded parental leave pay for up to 18 weeks, provided they meet certain criteria regarding income and employment.
Employees in Australia are entitled to paid leave on public holidays, with entitlements varying based on the state or territory and employment contract. If an employee is required to work on a public holiday, they may receive additional pay, often referred to as penalty rates, which are typically higher than their standard rate.
in Australia
1. What benefits are mandatory in Australia?
Employers in Australia are required to provide superannuation contributions of at least 11% of an employee’s ordinary time earnings, which goes toward their retirement savings. They must also adhere to the National Employment Standards (NES), which include entitlements to paid annual leave, personal/carer’s leave, and public holidays.
2. How are remote work allowances structured in Australia?
While there is no specific legal requirement for remote work allowances, many employers provide reimbursements for expenses incurred while working from home, such as internet and electricity. It is advisable for employers to outline these allowances in employment contracts to clarify responsibilities and tax implications.
3. What additional benefits are common in Australia?
Common additional benefits offered by employers include flexible work arrangements, professional development opportunities, private health insurance, and paid parental leave beyond statutory requirements. While these benefits are not mandatory, they are increasingly recognized as valuable for attracting and retaining talent.
4. What are enterprise agreements in Australia?
Enterprise agreements are negotiated agreements between employers and employees (often represented by unions) that set out the terms and conditions of employment, including wages and additional benefits. These agreements must meet or exceed the minimum standards set by the Fair Work Act and are legally binding.
TERMINATIONS
in Australia
The notice period in Australia varies based on the employee’s length of service. According to the Fair Work Act, it ranges from 1 week for employees with less than 1 year of service to 4 weeks for those with 5 or more years. Employers may choose to pay out the notice period instead of requiring the employee to work it.
An employee can be terminated without notice for serious misconduct, such as theft, fraud, violence, or any behavior that fundamentally breaches the employment contract. Such terminations must be justifiable and documented to avoid potential unfair dismissal claims.
Severance payments, known as redundancy pay, are calculated based on an employee’s continuous service with the employer. Typically, it is 1 week’s pay for each year of service, up to a maximum of 16 weeks for long-serving employees. This calculation is part of the National Employment Standards (NES).
FAQs
1. What is EOR in Australia?
An Employer of Record (EOR) in Australia is a service that allows businesses to hire employees without the need to set up a local branch or office. The EOR manages payroll, benefits, tax filings, and compliance with Australian labor laws, ensuring businesses meet all local regulatory requirements. This service makes it easy for companies to expand into Australia quickly while staying compliant with local laws.
2. What specific cost savings can our company expect by using Globaine's EOR solution compared to setting up a local entity in Australia?
Using Globaine’s EOR solution can save costs associated with establishing a local entity, such as registration fees, compliance costs, and overhead expenses. Additionally, the EOR model reduces the administrative burden of managing payroll and tax obligations, allowing businesses to focus on growth and operations instead of navigating complex regulations.
3. How does Globaine guarantee fast onboarding within 12 hours, and what processes are in place to maintain this speed?
Globaine guarantees fast onboarding by utilizing streamlined processes and technology that automate documentation and compliance checks. Their dedicated onboarding team ensures that all required information is collected and processed swiftly, allowing new employees to begin work quickly while ensuring that all legal requirements are met.
4. Can Globaine handle complex employment scenarios in Australia, such as drafting bilingual contracts and managing terminations?
Yes, Globaine is equipped to handle complex employment scenarios, including drafting bilingual contracts to accommodate diverse workforces and managing terminations in compliance with Australian labor laws. They provide support in navigating potential disputes and ensuring that all processes are legally sound.
6. How Does Employer of Record Work in Australia?
An Employer of Record (EOR) in Australia handles payroll, benefits, tax filings, and legal compliance in accordance with Australian labor laws. By acting as the legal employer, the EOR allows businesses to hire employees in Australia without setting up a local entity, simplifying the HR process and helping businesses expand into the Australian market efficiently.
