Australia

🇦🇺

Congratulations on your decision to hire employees in Australia! Known for its dynamic, diverse, and skilled workforce, Australia is a compelling destination for businesses seeking to establish or expand their presence in the Asia-Pacific region. With a robust, stable economy, Australia provides a supportive backdrop for growth and innovation. Plane simplifies the hiring process for you by offering automated tax document collection, payroll, benefits administration, and more, while ensuring compliance and maximum efficiency. Still, hiring in a new country can pose certain challenges, so we’ve put together the following guide on how to navigate the process of hiring in Australia.

Currency

AUD

 Onboarding

2.5 weeks minimum

Employer Cost

21.5%

Pay Frequency

Monthly

Public Holidays

7

5 Considerations Before Hiring in Australia

As an employer in Australia, it is important to have a comprehensive employment contract that outlines the terms and conditions of the employment relationship. The contract should include need-to-know info on compensation, benefits, vacation time, and sick leave policies. Before onboarding a new employee in Australia, take a moment to consider the following questions:

Does your employee have the right to work in Australia?

You must check that your employee has the right to work in Australia, which means they either are an Australian citizen or permanent resident, a New Zealand citizen, or have an overseas passport and valid Australian visa with work permissions. 

Before hiring, ask for documentation that proves your new hire has the right to work in Australia.

Plane Recommendation

You can check someone’s visa status and work conditions via the Visa Entitlement Verification Online (VEVO) system. You can either ask your new hire to email the VEVO check to you, or check their visa details via VEVO yourself. In addition, Plane does a right-to-work check during onboarding.

How do pensions work in Australia?
Will there be a probationary period? If so, for how long?
Is your employee covered by an award, enterprise agreement, or contract?
How many days of paid time off will be provided?

Getting Started with Hiring in Australia

Employment Contract

In Australia, employment contracts are crucial for defining the terms and conditions of employment between an employer and an employee. By law, these contracts can be verbal or written, but written contracts are highly recommended for clarity and legal certainty. Employment contracts must comply with the National Employment Standards (NES) and any relevant awards or enterprise agreements. 

They typically fall into several categories:

  • Full-time contracts: For employees who work, on average, 38 hours per week. They are entitled to all NES protections and benefits, including annual leave, sick leave, and family and domestic violence leave. 

  • Part-time contracts: For employees who work regular hours each week, but less than 38 hours. They receive annual leave and sick and carer’s leave on a pro-rated basis, as well as 10 days’ paid family and domestic violence leave.

  • Casual contracts: For employees who work irregular, non-guaranteed hours. Under awards and agreements, casual employees typically receive a casual loading, or a higher pay rate, in exchange for not receiving paid annual leave. Under the NES, casual employees are still entitled to a chance to become permanent employees, as well as two days’ unpaid carer’s leave, two days’ compassionate leave, paid family and domestic violence leave, and unpaid community service leave.

  • Fixed-term contracts: For full-time or part-time employees contracted to work for a specific duration with an agreed-upon end date. Fixed-term employees are entitled to the same wages, penalties, and leave as permanent employees. As of December 1, 2023, these contracts cannot last longer than two years, including extensions and renewals, and can’t be extended or renewed more than once.

Employment contracts should include the following key elements:  

  • The employer and employee’s names and addresses

  • The job title, duties, and responsibilities

  • Where work is performed (and specify if the employer or employee determines this)

  • The employee’s usual working hours (per day or per week) and any expectations of overtime

  • Salary or wage details, including amount, payment periods, and superannuation contributions

  • Vacation and leave entitlements

  • The length and conditions of the probation period, if applicable

  • Duration of the contract, if fixed-term

  • Terms related to ending the employment contract (i.e. termination)

  • Reference to applicable award or enterprise agreement employment terms, and

  • Any other terms and conditions agreed to between the parties.

Hire Calculator

Get an instant, free estimate of how much it will cost to employ your next hire, including taxes.

Once you have sorted out the details mentioned above, you can add the employee to the Plane platform. We provide a step-by-step workflow that shows what tasks need to be completed, as well as real-time updates and notifications. This way, you can stay on top of the hiring process at all times. With Plane, you can confidently hire, knowing that you have a powerful platform at your disposal to manage the entire process from start to finish. Here are the instructions for adding a new employee to the platform:

How to hire and onboard an employee

Plane offers a guided process for administrators and managers to hire and onboard their new employees.

Hiring an employee in a new country can be a complex process, but with the right guidance and resources, it can be a smooth and successful transition. At Plane, we're committed to helping you navigate this process step-by-step. We'll keep you informed and up-to-date with the latest regulations and employment laws.

Frequently Asked Questions

Here are answers to some common questions about hiring employees outside of the US with Plane:

What is the relationship between my company and Plane?

Pilot Platform Inc (Plane) provides the product and service by helping you manage HR, payroll, and statutory requirements. Plane has its own entities and partners that are the EOR/legal employer where the employee is legally hired in the country. Plane and our partner do not manage the performance of the employees since we do not monitor or work directly with them.

Can Plane withhold taxes for non-cash compensation (e.g. stocks, options)?
Will I be able to pay a bonus, commission, or any other additional payments?
Can Plane guarantee the employee’s start date?