Employer of Record in Australia | Hire Without Entity

Country Guide

Employer of Record Australia

Last updated: May 22, 2024

Capital City

Canberra

Languages

English

Currency

Australian dollar ($, AUD)

Population Size

25,771,300

Employer Taxes

18.45%

Employee Costs

2%

Payroll Frequency

Monthly

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Hire Globally, Pay Locally, Expand Effortlessly

We are Employer of Record in Australia (EOR) and we act as your trusted partner, facilitating a smooth entry process and ensuring full HR and payroll compliance.

Australia’s dynamic economy and multicultural environment offer exciting opportunities for foreign companies. However, its strict visa requirements and stringent labor regulations can be a barrier to entry.

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Partnering with an Employer of Record vs Company Incorporation in Australia

Company incorporation in Australia is often thought of as the default option for expansion that offers you complete control, but it’s vital to understand the comparative benefits that come with choosing to use an EOR in Australia, such as:

  • Speed: Australia’s strict visa requirements and company regulations can slow down the incorporation process. An Employer of Record allows for faster hiring and ensures compliance from the start by avoiding the matter altogether.
  • Compliance: Both Employer of Records and incorporated companies must comply with Australian labor laws. However, Employer of Records take on the responsibility of ensuring ongoing compliance, minimizing your risk, and offering specialized local assurance.
  • Cost: For smaller teams or companies with temporary needs, Employer of Record services can be more cost-effective than establishing a local subsidiary. You avoid upfront incorporation costs and ongoing administrative burdens.
  • Control: Incorporation offers more direct control over HR, finances, and operations. However, Employer of Records can still provide a significant level of control while handling HR and payroll tasks.

PEO/EOR vs Company Incorporation

The Advantage in Figures

PEO/EOR

Company Incorporation

Price

80% Less Expensive

Market Entry

2-5 Days

6 Months

Employee Turnover
Decrease by 14%
Recommendation
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 – 9%
ROI
27%
Closed During Pandemic
-58%
employer of record

The Benefits of an Employer of Record in Australia

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Fast and Compliant Hiring

Navigate Australia’s strict visa requirements and complex workplace regulations simply with the help of an Employer of Record. The right support ensures a smooth hiring process and ongoing HR and payroll compliance.

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Reduced Risks and Liabilities

An Employer of Record acts as your legal employer in Australia, minimizing your risks associated with employment regulations and ensuring total compliance with labor laws.

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Focus on Your Business

Offload HR tasks like onboarding, payroll processing, and tax administration to your Employer of Record. This allows you to focus on core business activities and building your team in Australia.

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Cost-Effectiveness

For smaller teams or companies with temporary needs, Employer of Record services can be more cost-efficient than establishing a local subsidiary. You avoid upfront incorporation costs and ongoing administrative burdens.

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Scalability

Employer of Records in Australia can scale their services as your business grows. This allows you to focus on expansion without worrying about complex HR and payroll challenges.

How an Employer of Record in Australia Works in 3 Steps

Working with an Employer of Record in Australia simplifies the process for businesses of all sizes. An Employer of Record in Australia like INS Global works to streamline your market entry in 3 simple steps:

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Step 1: Needs Assessment & Strategic Planning

The journey starts with a collaborative discussion between you and the Employer of Record. They’ll delve into your specific goals in Australia, including the number of employees, their roles, and your desired timeline. This initial consultation ensures the Employer of Record understands your vision and tailors their services to integrate with your overall strategy seamlessly.

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Step 2: Streamlined Setup, Hiring & Onboarding

Whether you’re building a new Aussie team from scratch or transferring existing staff, the Employer of Record handles complex legalities on your behalf. This includes navigating Australia’s strict visa requirements and workplace regulations, ensuring complete compliance from day one.

A global Employer of Record’s  expertise allows them to act as your legal employer in Australia, eliminating the need for establishing your own entity and saving you valuable time and resources.

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Step 3: Ongoing Support & Peace of Mind

Once your employees are operational, the Employer of Record manages ongoing HR and payroll functions in Australia. This includes processing salaries, managing employee benefits (including extras like superannuation contributions), and ensuring adherence to Australian tax regulations.

The Employer of Record acts as your HR liaison between you and your Australian team, handling any administrative tasks or employee concerns that may arise. By outsourcing these complexities, you’re free to focus on conquering the Australian market and managing your core operations with complete peace of mind.

INS GUIDES

Check Our Australia Labor Law Guide

Learn how the Australia Labor Law Guide is applied in all aspects and situations, from an employer and employee perspective.
Guide icon

Australian Labor Law in a Nutshell - 2025

Australian labor laws are known for being comprehensive in their protection of local workers. Understanding key points before entering the market is crucial. Here’s a breakdown of some of the most important aspects and how an Employer of Record in Australia can help you navigate them: 

Contracts

Employment contracts in Australia must be written in English and clearly outline terms of employment, including salary, benefits, working hours, termination clauses, and entitlements under modern awards (industry-specific minimum conditions). An Employer of Record like INS Global can ensure your contracts comply with legal requirements and protect your interests.

Probationary Periods

 Probationary periods are common in Australia and can last up to 3 months. An Employer of Record can guide you on setting up probationary periods that adhere to Fair Work regulations while allowing you to properly assess new employees.

Working Hours

Standard work hours in Australia are 38 per week, with limitations on overtime. Employer of Records help you track working hours and ensure compliance with overtime regulations to avoid penalties.

Paid Leave

Employees are entitled to various forms of paid leave in Australia, including national holidays, annual leave, personal leave, and sick leave. An Employer of Record can track and manage leave requests and ensure proper compensation on your behalf according to Australian workplace laws.

Superannuation

Employers are required to contribute to a superannuation scheme (pension plan) for employees. Your Australian Employer of Record handles these contributions for you as part of the standard payroll process.

Severance Pay

Severance pay is required by law under certain circumstances, such as termination by the employer without cause. An Employer of Record in Australia can guide you on severance pay practices and calculations to ensure compliance with Fair Work regulations.

Navigating these complexities can be time-consuming and requires staying updated on legal changes. Partnering with an Employer of Record in Australia acts as your local legal partner, ensuring your business remains compliant with labor laws and protects you from potential risks.

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Employer of Record (EOR) in Australia

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Frequently Asked Questions

faqs

Australian EOR services are priced as a portion of a co-employed worker’s salary. All HR operations required on behalf of the employee are covered by this fee, which is paid as part of the payroll process.  

If you work with a local EOR, you can hire people in Australia safely and lawfully without the need for a local corporate structure. EOR services offer a fully compliant way to hire or transfer individuals to Australia with all benefits and protections.  

In Australia, employers must provide their workers with total protection and a range of mandatory benefits. EOR services give businesses everything they need to effectively manage their duties in Australia while guaranteeing that employment agreements and administrative procedures comply with every necessary law. 

You can join the new market for a single monthly charge without needing to construct a local organization in Australia.  

In Australia, independent contractors can receive employee benefits and retain total control over their work and work procedures by entering into an EOR agreement to perform work for their clients. This allows your business to connect with a variety of nearby contractors and use our EOR to take care of contractor classification and payment compliance assurance.  

The services of our recruitment agency in Australia can offer top-notch hiring services while carefully adhering to hiring best practices thanks to our extensive recruitment networks and diversified local resources. Our recruiting specialists can find the best local or international talent for you because they are thoroughly versed in all local requirements and rules as well as hiring best practices.  

What’s more, once the right team members have been found and hired, they can be effortlessly integrated into your existing organization through our local EOR services.  

You can find the best international talent in Australia and beyond with the help of INS Global’s Australian recruitment agency solution and compliance guarantor. Our experts employ professional hiring strategies that account for all regional or local variations in employment norms.  

Without minimum or maximum service requirements, INS Global offers you the scalability to expand into more than 100 countries while hiring as many or as few team members as your projects demand. 

Reacting swiftly to constantly changing worldwide marketplaces may be necessary for your global expansion. That’s why we don’t put any restrictions on your recruitment needs.  

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The direct and indirect costs of working in Australia include things like payroll taxes, hiring fees, and signing bonuses, to name a few. On the other hand, all of this might be managed for a single charge by an EOR or PEO service.   

Working in Australia may also require less obvious costs, including incentive programs, moving expat employees, and other expenses related to establishing local institutions. Having the right local information also helps to reduce unnecessary spending.   

You can eliminate the necessity for a local physical site, which could be required as part of company opening procedures, by utilizing global EOR services.  

Following national labor legislation, certain employment perks or obligations may vary between Australians and foreign nationals. In these scenarios, INS Global can offer both groups of workers total compliance assurance and promptly adapt to changes in local or global regulations.  

EOR and PEO solutions can help businesses of all sizes, from small start-ups to massive multinational corporations, to succeed more quickly in a new market. Thanks to cutting-edge employment outsourcing technologies, employing local or foreign personnel effectively and securely is simple.  

Our services can even replace internal HR duties while offering quick ways to expand to accommodate more workers’ requirements.  

The legal expertise offered by PEO and EOR services may be particularly advantageous to businesses in various industries that lack structures or established networks in Australia (or seek to avoid cost-scaling difficulties). 

You can hire contractors through certified local organizations, umbrella companies, or staffing agency services in Australia in addition to using local PEO services in Australia or an EOR in Australia. Using contractors securely and effectively without worrying about misclassification is another benefit of outsourcing the necessity to engage and pay contractors in Australia.   

As an employer, you must ensure that Australian contractors are fairly compensated, even though you are not required to offer employee benefits or protections.  

There arent specific rules on when a company must pay its employees in Australia, but typically payroll takes place every week, fortnight, or month.  

As of July 2023, the minimum wage in Australia is AUD23.23 per hour or AUD882.80 per 38-hour week. 

There are many different work visas available in Australia, with a full list being available on the Australian governments website here.  

Employers in Australia must manage and withhold tax and social security benefits for their employees as part of the regular payroll process. This also includes employer contributions to each employees social security fund, which encompass Superannuation and Retirement Taxation (the equivalent of 11% of the employees salary), Work Coverage (based on the chosen work insurance plan), and the Fringe Benefits Tax (47% of the value of all non-cash fringe benefits provided to workers).  

In addition to providing a safe working environment with regular and accurate payment, employers in Australia must give their employees pension contributions, paid leave for public holidays, sickness, annual vacation, and parental leave, plus long service leave for employees with more than 5 to 10 years of service. Employers are also required to offer flexible working arrangements if necessary.  

In general, its considered best practice to have the full consent of an employee in Australia before making amendments to their contract to avoid legal problems. These amendments must be made in writing, and employers can terminate an employee if agreements cannot be reached.  

Most public healthcare services in Australia are free for users or may include small additional costs. The healthcare system is funded through taxes. 

In addition to this, the private healthcare system allows for private healthcare plans or services paid for by the user or through additional private health insurance.  

Employees in Australia must be given a notice period before termination. Notice periods depend on the employee’s length of service: 

 

  • 1 week for service of 1 year or less 
  • 2 weeks for 1 year – 3 years 
  • 3 weeks for 3 years – 5 years 
  • 4 weeks for more than 5 years 

 

Payments must be made to employees only in the case of redundancy if there is no evidence of serious misconduct. This payment is tax free. Redundancy payments are: 

 

  • 4 weeks’ pay for 1-2 years of continuous service 
  • 6 weeks’ pay for 2-3 years of continuous service 
  • 7 weeks’ pay for 3-4 years of continuous service 
  • 8 weeks’ pay for 4-5 years of continuous service 
  • 10 weeks’ pay for 5-6 years of continuous service 
  • 11 weeks’ pay for 6-7 years of continuous service 
  • 13 weeks’ pay for 7-8 years of continuous service 
  • 14 weeks’ pay for 8-9 years of continuous service 
  • 16 weeks’ pay for 9-10 years of continuous service 
  • 12 weeks’ pay for 10+ years of continuous service (plus long service pay) 

Since the Fair Work Act of 2009, Fair Work Inspectors (FWI) have overseen compliance with national labour laws.  

There are 7 national public holidays in Australia on which employees are eligible for paid leave. If the public holiday falls on a typical rest day, then the next working day should be provided as leave in lieu. Additionally, each state or territory may have its own public holidays.  

Public Holidays Calendar

Australia

Date Day Holiday Notes
1 January Wednesday New Year’s Day Observed nationwide. Marks the beginning of the new year.
26 January Sunday Australia Day National day commemorating the arrival of the First Fleet at Port Jackson in 1788. Celebrated with various events across the country.
27 January Monday Australia Day Holiday Observed nationwide as a public holiday in lieu of the Sunday holiday.
18 April Friday Good Friday Observed nationwide. A Christian holiday commemorating the crucifixion of Jesus Christ.
21 April Monday Easter Monday Observed nationwide. Celebrates the resurrection of Jesus Christ.
25 April Friday ANZAC Day Observed nationwide. Honors the members of the Australian and New Zealand Army Corps (ANZAC) who fought at Gallipoli and other military campaigns.
25 December Thursday Christmas Day Observed nationwide. Celebrates the birth of Jesus Christ.
26 December Friday Boxing Day Observed nationwide. Traditionally a day for giving to the less fortunate and for sporting events.

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