Employer of Record (EOR) in
Australia
Ready to hire in Australia?
Hiring in Australia opens the door to great talent, but only if you get compliance right. Learn the essentials of employment law, payroll taxes, termination rules, and more, and see how an Employer of Record (EOR) in Australia can help you hire quickly without the legal risk.

Language(s)

Currency

Capital
Canberra

Population
27.5 M

Public holidays
7 (varies by state)

VAT
10%
Employment contract types in Australia
Choosing the right employment contract in Australia affects everything from probation periods to termination rights. Learn which contract types are available, when each one applies, and how an Employer of Record (EOR) in Australia can make sure every agreement meets local requirements.
DEFAULT
Indefinite contract
Default. Full National Employment Standards protections incl. notice, redundancy pay and unfair dismissal rights
REGULATED USE
Fixed-term contract
Permitted but generally capped at 2 years including renewals (since Dec 2023), otherwise converts to permanent.
Employment basics in Australia
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Australia to stay compliant from day one.
NES cap is 38 hrs plus reasonable additional hours; overtime rates (150-200%) set by awards
PROBATION PERIOD
6 months max
Unfair dismissal protection applies after 6 months (12 for small business); 1 week notice applies even during probation
13TH / 14TH SALARY

Not Required
JOB TITLE REGULATIONS

Regulated
Company directors, officers and roles requiring Australian licensing or security clearances generally cannot be hired under the EOR model
Taxes & employment costs in Australia
The true cost of hiring in Australia goes well beyond salary. Learn how payroll taxes, employer social security contributions, and mandatory benefits add up.
12% superannuation guarantee (retirement) on ordinary time earnings, plus state payroll tax (~4.85-6.85% above thresholds) and workers' compensation premiums
No separate employee social security contributions; progressive income tax plus 2% Medicare levy withheld via PAYG, varies by income.
On top of 12% super (payable each payday from 1 July 2026), employers face state payroll tax of ~4.85-6.85% above thresholds, plus workers' compensation premiums.
Employer of Record cost calculator
Found talent in another location outside your home base? Know the potential cost using RemoFirst before you commit. Use our calculator to get instant, country-specific employee cost estimates in 185+ countries.
*This calculator provides reliable estimates based on up-to-date local data. While it's not a final EOR quote, it gives you a strong benchmark for planning.
Calculate your EOR costsLeave entitlements in Australia
Here’s what you need to know about leave entitlements in Australia, including annual leave, public holidays, sick leave, parental leave, and more. Many companies choose to work with an Employer of Record in Australia to stay compliant from day one.
Type
Duration
Pay During Leave
Maternity leave
26 weeks (govt-paid; unpaid leave available to 12 mo)
Min wage rate (govt-funded)
Paternity leave
Up to 12 months unpaid (shared NES entitlement)
Min wage rate (shared, govt-funded)
Sick leave (days 1-3)
100% (employer, from accrued personal leave)
100% (employer) until accrued leave exhausted
Unpaid once accrual exhausted; job-protected up to 3 months
2 days per occasion (paid)
Compassionate leave
Family & domestic violence leave
Up to 10 days make-up pay (jury)
Community service leave (jury duty)
~8.67 weeks after 10 years (varies by state)
Long service leave
When hiring in Australia, employers must provide statutory benefits required my local laws. An Employer of Record in Australia can help you stay compliant and offer a competitive package.
Statutory Benefits
In addition to statutory leave, employees are entitled to the following statutory benefits:
Employers are required to make superannuation guarantee contributions of 12% on behalf of their employees, while broader welfare is tax-funded. Benefits derived from these arrangements are:
- Retirement income (superannuation)
- Medicare public healthcare
- Government Paid Parental Leave
- Workers' compensation via mandatory employer insurance
WORKPLACE INJURY PROTECTION
Employers must hold workers' compensation insurance under the relevant state or territory scheme, covering medical costs and income replacement for work-related injury or illness.
Redundancy pay under the National Employment Standards ranges from 4 to 16 weeks' base pay depending on years of service, in addition to notice. Small businesses with fewer than 15 employees are generally exempt.
There is no 13th-month salary in Australia and it is not customary; remuneration is typically an annual salary plus 12% superannuation.
Termination & notice in Australia
Ending an employment relationship in Australia requires careful planning to avoid disputes and unexpected costs. Learn the rules for notice periods, valid grounds for dismissal, and more.
Unfair dismissal
Fair Work Commission: reinstatement or up to 26 weeks' pay (capped)
Objective / fair dismissal
4-16 weeks' redundancy pay by tenure (15+ staff), plus notice
During probation
1 week's notice.
After probation
1-4 weeks by tenure (+1 week if over 45 with 2+ yrs service)
Accrued untaken annual leave (and long service leave where applicable) must be paid out on termination.
Get visa support in Australia

RemoFirst can support the visa + permit process in Australia, including compliance, onboarding, and more. No local entity needed.
Learn moreRelated compliance info about Australia
Staying compliant in Australia is an ongoing responsibility, not a one-time task. Learn the key requirements around work permits, employee data protection, record-keeping, worker classification, and see how an Employer of Record in Australia can take on that responsibility so you can focus on growing your team.
Content last reviewed Nov 2026. Employment laws change fast, always verify critical hiring decisions, and talk to our team of international experts.