Strengthening Industry, Uplifting Futures

Australia, as an English-speaking country in the APAC region with a diverse workforce and a stable economy, is an attractive destination for businesses looking to expand internationally. However, before hiring, it is essential to understand the local labor laws that govern employment relationships.

Employment in Australia is primarily regulated by the Fair Work Act 2009, along with the accompanying Fair Work Regulations and subsequent amendments. These laws define the rights of workers, responsibilities of employers, and processes for resolving workplace disputes. Employers are generally required to provide written employment contracts that outline key terms, including job duties, compensation, working hours, and benefits. Additionally, companies must comply with statutory obligations, such as minimum wage requirements, superannuation contributions, and working time regulations.

Special rules apply to temporary and agency workers, who are usually engaged under fixed-term contracts. These contracts must include a Fixed Term Contract Information Statement (FTCIS) as mandated by the Australian government.

Australia also recognises apprentices, who are employed under training contracts. Employers hiring apprentices work alongside a registered training organisation (RTO), and the government can provide support, including financial assistance, to encourage apprenticeship programs.

Australia provides a range of visa options for foreign workers, enabling businesses to hire talent while complying with immigration regulations.

• Temporary Graduate Visa: This visa allows employers to employ recent graduates from Australian universities. Its duration ranges from one to three years depending on the graduate’s circumstances.
• Skilled Regional (Provisional) Visa: Designed for skilled workers willing to live and work in designated regional areas of Australia. Multiple pathways are available for extended stays, returning workers, and accompanying family members.
• Skills in Demand (SID) Visa: A temporary visa for employers to sponsor skilled professionals in positions that cannot be filled by qualified Australian workers. Valid for up to four years, or five years for applicants holding a Hong Kong passport.
• Employer Nomination Scheme (ENS) Visa: Allows employers to nominate skilled employees for permanent residency, helping secure key talent for the long term.
• Business Innovation Visa: A provisional visa valid for up to five years, permitting holders to start a new business, manage an existing business, or conduct investment activities in Australia.
• Global Talent Employer Sponsored (GTES) Visa: Targets highly skilled workers in niche roles that are difficult to fill through local recruitment or the SID visa. Available to both new and established businesses.

In Australia, workers can be employed under a variety of arrangements, each with specific rights and obligations:

• Full-time employees: Permanently employed, usually working 38 hours per week, with access to paid leave and other standard benefits.
• Part-time employees: Permanently employed for less than 38 hours per week on a regular schedule. They are entitled to the same benefits as full-time employees, calculated on a pro-rated basis.
• Casual employees: Employed without a firm, ongoing commitment. Determining casual status can be complex, especially after recent changes in August 2024, which clarified factors such as the likelihood of ongoing work, the worker’s ability to accept or decline shifts, and other employment circumstances.
• Fixed-term contract employees: Hired under a contract with a specific end date, these employees receive many of the same entitlements as full- or part-time workers. Fixed-term contracts are subject to limits on duration, renewal frequency, and extensions.
• Daily or weekly hires: Common in construction, building, and plumbing industries. These employees still require a written contract outlining key provisions similar to full-time employment.
• Shift workers: Defined as employees who work scheduled shifts, often with additional pay for irregular hours. Entitlements depend on the job role, sector, and applicable award or enterprise agreement.

Probation Periods

Probationary periods are common at the start of employment contracts. Typically set by the employer, they range from three to six months, during which employees receive the same entitlements as regular staff.

Termination and Notice Periods

Employers must provide written notice when terminating an employee, even in cases of poor performance, misconduct, or business restructuring. Notice periods typically range from one to four weeks, depending on the employee’s length of service. Employees aged over 45 may be entitled to additional notice. Employers may also choose to provide payment in lieu of notice, allowing the employee to leave immediately while receiving compensation for the notice period.

For redundancies, employers may be required to provide redundancy or severance pay, which depends on the employee’s classification, years of service, and the industry in which they work.

Average weekly earnings for full-time adult employees in Australia vary by sector and gender.

• Public sector: Males earn an average of AUD 2,253.30 per week, while females earn AUD 2,027.20.
• Private sector: Males earn an average of AUD 2,038.00 per week, compared with AUD 1,739.30 for females.

Average Weekly Earnings by State/Territory

While salaries across Australia are relatively consistent, some variation exists between regions:

This data provides a useful benchmark for employers considering competitive compensation packages across different sectors and locations in Australia.

Employee entitlements in Australia are primarily governed by the National Employment Standards (NES), which set minimum requirements for all employees. These standards cover:

• Maximum weekly working hours for different types of employees
• Contributions to retirement funds
• Public holidays, annual leave, and parental leave entitlements
• Requests for flexible working arrangements
• Conversion of casual employees to permanent roles
• Notices for termination and redundancy pay
• Provision of Fair Work Information Statements and Casual Employment Information Statements

Tax and Social Contributions

Beyond statutory entitlements, many employers provide additional benefits such as private health insurance, professional development programs, and wellness initiatives. Workforce enablement partners like Link Compliance can advise on competitive benefits packages tailored to your industry and location in Australia.

In Australia, employers are responsible for withholding income tax from employee salaries under the Pay As You Go (PAYG) system. The withheld amounts must be submitted to the Australian Taxation Office (ATO) and reported through your Business Activity Statement (BAS) and Single Touch Payroll (STP) system. The frequency of payments and reporting depends on the size of your workforce and total withholdings.

Employers are also required to contribute to the Superannuation Guarantee (SG), which supports employees’ retirement savings. Additionally, a Fringe Benefits Tax (FBT) may apply if benefits such as company cars, parking, or gym memberships are provided.

Annual Leave

In Australia, paid annual leave begins accruing from an employee’s first day of work. All employees except casual workers are entitled to holiday pay. Full-time and part-time employees generally receive four weeks of paid leave per year, while shift workers may receive up to five weeks, depending on their industry.

Employers may offer additional leave beyond the statutory minimum through employment contracts or enterprise agreements, though this is optional. Many organisations provide enhanced leave benefits to remain competitive and support employee retention.

Public Holidays

Employees are entitled to paid leave on public holidays. While the exact holidays can vary by state and territory, several national holidays are observed across Australia:

• New Year’s Day
• Australia Day
• Good Friday, Easter Sunday, Easter Monday
• ANZAC Day
• Second Monday in June: King’s Birthday
• Christmas Day
• Boxing Day

Sick and Carer’s Leave

Full-time and part-time employees (excluding casual workers) are entitled to 10 days of paid sick and carer’s leave per year, which accumulates over time. Unused leave carries over to the following year.

Sick leave can be taken for personal illness or injury, and a medical certificate may be required. Carer’s leave allows employees to care for an immediate family or household member who is sick, injured, or facing an emergency. Part-time employees receive leave on a pro-rated basis according to their hours worked.

Compassionate and Bereavement Leave

Employees are entitled to two days of compassionate leave per incident for events affecting an immediate family or household member, including:

• Death
• Life-threatening illness or injury
• Miscarriage or stillbirth

Casual employees receive unpaid compassionate leave, while other employees are paid their normal wages during this time.

Family and Domestic Violence Leave

All employees, including casuals, are entitled to 10 days of leave per year if they experience domestic or family violence. This leave is available immediately upon employment, does not accrue, and resets on the employee’s work anniversary.

Parental Leave

Australia provides comprehensive parental leave protections. While government payments cover many employees on leave, employers are legally required to provide unpaid leave. Many organisations choose to offer paid parental leave, either fully or partially, to enhance compensation packages.

Pregnant employees are entitled to job security and special leave for pregnancy-related illness, as well as flexible working arrangements where appropriate. After childbirth or adoption, both parents can take up to 24 months of unpaid leave, during which employers may hire temporary replacements.

Employees in Australia are entitled to paid leave on public holidays. While there are several national holidays observed across the country, the exact dates and additional holidays can vary depending on the state or territory.

Note: Some states and territories may observe additional holidays or adjust dates for local significance. Employers should check local regulations to ensure compliance.

More information on public holidays:
https://www.fairwork.gov.au/employment-conditions/public-holidays/2026-public-holidays

Please find our Australia office address below:

232 Unley Rd, Unley SA, Australia 5061

Email: info@linkcompliance.com

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Disclaimer: The content provided on this website is intended for informational purposes only and should not be considered legal or professional advice. Link Compliance makes no representations or guarantees regarding the accuracy, completeness, or reliability of the information, including any translations or interpretations. Laws and regulations are subject to change, and their application may vary. Users are strongly encouraged to consult with a qualified professional or legal advisor to address any specific questions, concerns, or issues arising from the information presented.