- Overview: Australia
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global HR Compliance in Australia
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Australia Guide below will help you understand the nuances of labor legislation in the country.
There are two main reasons for companies hiring foreign workforce:
- Expanding into foreign markets to sell company product or products there. In this case, companies hire sales representatives who would exclusively represent their product in the target market and sell it to their local client base.
- Hiring the right foreign talent with a unique expertise, often related to IT sphere that cannot be found in the home country or that costs less compared to local specialist with similar skills.
After you have found the right candidate, the question is how to hire and provide compensation to this person so you as a business remain 100% compliant when working with global workforce. Another thing to consider is whether you want to keep the talent long-term and how you can do that.
If you need to hire foreign workforce in Australia so you can expand there, then our Global Employer of Record solution may be of help. We help you legally hire and reward your foreign workforce by making them employees via a global employment outsourcing service. This is simple as employ your in-house workforce with the only difference that workers can live anywhere in the world and Acumen International would be their legal employer on your behalf. This means we would bear all employment risks, not you. Also, we manage bonuses, vacations, sick leave and can rent the office and a car for your foreign sales representatives if that is what you need.
With our solution, you can test new foreign markets before deciding whether you are going to get established there. You gain flexibility and expand with reduced costs, and easily withdraw from the unattractive countries.
We are experts in global workforce employment in Australia, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Australia.
Hiring and Firing Workforce in Australia Guide
# Employment contracts
An employment contract can be concluded orally or in writing or in both ways and must reflect at least the legal minimums that are contained in the applicable national/state labor standards and enterprise agreements. According to the legal minimums, a contract should specify detailed information about the parties of employment, the type of employment, job title, required work time, including the hours of work, basic pay rate, different leave entitlements and benefits. Both the employer and the employee has the right to file a claim for damages if either of them breaches the terms of the contract.
# Minimum (Statutory) Employment Rules and Regulations in Australia
# Hours of work
The maximum time limit an employee can work a week is 38 hours. An employee may be required to exceed this time limit if the reason for the extension is legitimate.
# Probation period
An employer may use the first few weeks or months of employment as an employee’s trial period. During this period, the employee will be given the same employment rights as the employee has who passed his/her probation.
# Annual leave
Though there are 8 national holidays in Australia (New Year’s Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Queen’s Birthday, Christmas Day and Boxing Day), every Australian employee is entitled to about 10-12 paid holidays every year. Employers, based on the state of work has different state established holidays to choose from to ensure that their employees are given their full holidays entitlement.
In addition, not including temporary workers, employees have the right to annual paid vacation: full time workers are eligible to receive a 4-week paid annual leave, while part-timers are given an annual leave in proportion to how much work they have done. Shift workers are entitled to an additional week of yearly vacation every year.
Employees on annual vacation are entitled to a holiday pay that is equivalent to their normal pay rate. An employee has the right to request for a payment in cash in place of his annual vacation, and may accumulate his vacation as year passes. Moreover, every employee has a legal right to an increment of 17.5% of the base pay for every week they on vacation.
# Parental leave
The Australian government has since 2011, made a provision for up to an eighteen-week parental support -paid and unpaid leave for all eligible working parents in the country. To be eligible for a parental leave benefit, the employee must be the principal caretaker of a child (newborn or adopted).
# Sick leave
Employees are given a paid sick /carer’s leave if they cannot continue their normal employment activities because they or any of their immediate family members are sick or they have an unexpected and dangerous situation that requires urgency. Sick leave may be given up to 10 days per year for full timers and 10 pro rata days for part time workers. Employees must provide an evidence before he can be able to receive his sick leave benefits.
Employers are obligated to pay for any hours an employee works in excess of the normal working hours, at night, during the holidays or the non-working days. To compensate for such hours, the employer is required to pay the employee one and a half times his normal rate of pay for the first 3 hours and double time for the following hours. For works done on holidays or non-working days, the employee must pay the employee twice the regular rate or double time plus one and a half.
# State minimum salary
The statutory minimum wage is A$17.70 per hour or A$672.70 per week. This is often used for employees whose wage limits are not determined in the sector workplace agreement or the enterprise agreement.
# Employment termination
Full-time and part-time employees (probationary or fully employed) whose contracts of employment are ended because of any reasons other than gross misconduct are entitled to a minimum of one week notice period or a payment instead, which must be equivalent to their basic pay rate for the given period of notice. A one-week notice must be given to employees who are in their first year of employment, a 2-week for those who have worked more than one year till three years in the company, a 3-week notice – for employees who have worked more than three years till 5 years, and a 4-week notice for those whose employment has lasted more than 5 years. Additional advantage of extra one week is given to employees who have worked no fewer than 2 years in the company and are over the age of 45.