PEO & Global Employer of Record in Australia | INS Global
Countries / Australia / PEO&Employer of Record in Australia

PEO in Australia

Hire Globally, Pay Locally, Expand Effortlessly

Going through the administrative processes required to open a separate legal entity in Australia can be a time-consuming and complex procedure. 

A PEO (Professional Employer Organization) is your local partner for speeding up and simplifying global expansion. A PEO can hire, manage administrative tasks, and ensure legal compliance for your staff in Australia, all without requiring you to set up a new company. 

INS Global is your local partner for Australian PEO and HR outsourcing services. We have over 15 years of experience helping companies expand to more than 80 countries. With our expertise, you can save time and money and get to work in a matter of days.  

Want to have a Team in Australia TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

Want to have a Team in Australia TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

Employer of Record Infographic

PEO in Australia - Summary

What are the advantages of a PEO over Company Incorporation?

To begin operations on your own in Australia, you would first have to understand the complex system of regulations required to set up and manage a new legal identity, then ensure complete legal compliance with every law relating to labor and tax.  

Choosing to establish a new company in Australia would mean being liable for every aspect of that company being fully operational and totally compliant before getting started on making it successful. It can be costly, involving large teams and many headaches, from legally hiring your employees to establishing back-end processes like tax compliance. From start to finish, the time required to start a company in Australia could be as long as two months and can require several thousand dollars in fees in the first two years.  

A knowledgeable PEO can do all of these things for you in a fraction of the time, allowing you to begin the tasks you need to complete to be successful from day one. 

A PEO: 

  • Cuts through red tape
  • Reduces timelines
  • Reduces costs
  • Makes the most of local expertise
  • Makes the most of local networks
Hiring an Overseas Employee

The Benefits of a Partnership With an Australian PEO

Ensure Total Legal Compliance

No need to worry about falling foul of any regulations. We take care of all compliance requirements.  

Save Money

Avoid all the typical costs associated with company incorporation and any potential fees or fines 

Reduce Unnecessary Tasks

We arrange all your HR needs allowing you to take care of the tasks that matter to your company’s success 

Enter the Market in Days

Begin operations immediately and let us deal with the rest 

Streamline Your Company Structure

Minimize your team and maximize your potential output by letting us take care of all the tasks that would typically go to an HR department 

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

5/5

How does a PEO in Australia Work for You?

We provide a simple setup process to get you started in Australia as quickly as possible. 

  1. You meet with our consultant to discuss your needs and create a plan that will best serve you
  2. We provide a legal entity that can bring your employees into Australia
  3. We take on the administrative liabilities and responsibilities of hiring and paying your employees, such as payroll outsourcing and management
  4. You and your employees begin operations while we take care of the rest

The Differences Between PEOs and Employer Of Record

When considering a partnership with a PEO in Australia, you will likely also hear the term EOR (Employer of Record). Typically, the two terms are largely interchangeable based on the kind of services they offer. The main difference between the two is the level of liability taken on by the PEO/EOR and the parties involved in the agreement.  

  • A PEO provides all HR services to employees on behalf of other companies 
  • A PEO agreement is made between the PEO and the original company to share the responsibilities for the employee 
  • An EOR in Australia legally hires the employee on behalf of the original company and provides all HR services 
  • An EOR agreement is made between the EOR and the employee on behalf of the original company 

In Australia both services are indistinct according to national regulations, but INS Global can offer any elements of both according to your requirements 

Labor Law in Australia

Many regulations in Australia protect Employer-employee relations. In addition to the variations between the different states and territories, much of what relates to employment in Australian law is subject to constant change. 

The most common piece of law dealing with employment in Australia is theFair Work Act of 2009, which employers must follow to ensure fair work conditions for their employees. Australia ranks well by any law and employment conditions index, and a failure to follow these regulations can lead to serious penalties for an employer.  

Employment Contracts In Australia

Australian law recognizes non-written contracts in most circumstances. Still, it is suggested to establish a formal written contract with employees to clarify expectations and reduce the risk of disagreement later on.  

Typically, employees should have a workplace agreement that sets down the rights and responsibilities of all parties involved. This is also different to an agreement with a contractor.   

As there is no standard form of workplace agreement, it’s essential to consider an agreement structure that will be acceptable to all parties involved.

Working Hours In Australia

Employees in Australia can work for a maximum of 38 hours per week. However, an employer can request that an employee works a reasonable amount of overtime hours in addition to this. 

What is considered reasonable will be related to the industry, type of work, and workplace agreement. See here for a calculator   

The exact rates of overtime pay will depend on the state that an employee is working in and other factors like the amount of overtime and type of work. Typically, however,  overtime rates are1.5x standard pay for the first 2-3 hours of overtime.  

Holidays and Annual Leave

Full Time employees in Australia are eligible for 4 weeks of annual leave. Part-time employees are eligible for the same amount scaled down proportionally to the weekly hours worked. 

The notice period required and all details related to taking leave in Australia must be agreed upon by the employer and employee.  

There are 7 days of nationally recognized annual public holidays, plus others recognized individually by each state and territory.  

Sick Leave

Employees are eligible for up to 10 days paid sick/ carer’s leave, plus 2 days of compassionate/ bereavement leave.   

Employers are also expected to allow for volunteer or emergency leave when necessary. However, this is typically unpaid (except in the case of jury duty). 

Parental Leave

Often called maternity or paternity leave, parents in Australia having a baby or adopting are eligible for a period of paid leave and up to 12 months of unpaid parental leave.  

The adoptive parent, birth mother, or primary caregiver of a newborn child may take up to 12 weeks of paid leave in one continuous block to care for the child. 

Fathers may be eligible for 2 weeks of Dads and Partner Pay, paid by the government at national minimum wage.  

The employee must have worked for the company for 12 months prior to taking paid parental leave.  

Tax Law

Employers in Australia are expected to organize tax and payroll for their employees and register them for the national “Pay As You Go” tax structure, withholding a portion of their employees’ earned income to go towards this scheme.  

Current tax rates are based on brackets and vary between 19-45% for income above AUD 18,200. 

There is also a national 2% levy on earned income to fund the National Health Scheme 

Employers are expected to give an amount equivalent to 10% of their employees’ earned income towards the national pension scheme.  

As of January 2022, all earnings in Victoria, Australia, will also be subject to an additional Mental Health and Wellness surcharge. Similar surcharges may follow in other states and territories, so it is suggested that employers stay aware of any changes to tax laws.  

Corporate tax is currently at 30% for income above AUD 50 million. 

CONTACT US TODAY

Discover More Solutions in Australia

FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.

DOWNLOAD THE PDF