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Hiring Employees in Australia: A Comprehensive Guide

A
Written by Asma Makni
Updated this week

Table of Contents

  1. Introduction

  2. Key Considerations for Employing in Australia

  3. Benefits

  4. Employment Contracts

  5. Onboarding

  6. Leaves

  7. Payroll & Taxes

  8. Termination Process

  9. Invoice Schedule

  10. Get Started with Omnipresent


1. Introduction

Hiring in Australia involves compliance with local laws, mandatory retirement savings, and robust employee protections. Omnipresent’s Employer of Record (EOR) service simplifies the process, ensuring compliance and seamless onboarding.


2. Key Considerations for Employing in Australia

  • Currency: Australian Dollar (AUD, $)

  • Language: English

  • Employer Costs: Low

  • Termination Complexity: Hard

  • Onboarding Timeline: ~16 calendar days

  • Payroll Frequency: Bi-monthly or monthly


3. Benefits

What We Offer

  • Mandatory:

    • Healthcare via Medicare

    • Retirement via Superannuation Fund

    • Disability Insurance

    • Life Insurance

    • Workers’ Compensation

    • Employee Assistance Programs

  • Supplementary:

    • Offered through Omnipresent’s default Super Fund, includes life & disability insurance and employee assistance programs

Health

  • Public healthcare is provided through Medicare.

  • Private health insurance is uncommon due to high fringe benefit tax.

Retirement

  • Employers must contribute to a Superannuation Fund.

  • Employees choose their fund. If they opt for the Omnipresent fund, it includes insurance and wellbeing support.


4. Employment Contracts

Contract Types

  • Indefinite-term contracts

  • Fixed-term contracts

  • Part-time contracts

Requirements

  • Written contracts are mandatory

  • Language: English

  • Signature: Digital signatures permitted

  • Backdating: Not allowed under Omnipresent policy

Customisation

  • Customisable: Unlimited PTO, extra-legal sick days

  • Non-customisable: Overtime terms, restrictive covenants, stylistic edits

Probation Period

  • Typically 3 to 6 months

  • Only waived in employment relationship transfers


5. Onboarding

Timeline

  • ~16 calendar days

  • Steps include:

    1. Platform Setup

    2. Right-to-Work Check

    3. Employment Contract

    4. Benefits and Payroll Enrollment

Registration & Approvals

  • Send employee’s Tax File Declaration to ATO within 14 days

  • Submit Superannuation Choice Form to the elected fund

Immigration & Visas

  • Omnipresent does not sponsor visas, but will advise on options

Right-to-Work

  • VEVO checks are required for non-Australian citizens

Employee Transfers

  • Seniority can be recognized and should be stated in the contract


6. Leaves

Annual Leave

  • Minimum 20 working days, inclusive of public holidays

Maternity Leave

  • 12 months unpaid, after 12 months of continuous employment

Paternity Leave

  • 2 weeks, paid by the government at national minimum wage

Sick Leave

  • 10 days/year, personal or carer’s leave

Public Holidays

  • 9 national holidays, plus additional state/territory holidays:

    • New Year's Day, Australia Day, Good Friday, Easter Saturday, Easter Sunday, Easter Monday, ANZAC Day, Christmas Day, Boxing Day


7. Payroll & Taxes

Payroll Cycle

  • Bi-monthly or monthly

    • Cut-off: 6th of the month

    • Payment: Last working day of the month

Extra Payments

  • No mandatory bonus payments

Hourly Wage

  • Not supported by Omnipresent

Minimum Wage

  • $882.80/week (or $23.23/hour) as of July 1, 2023

  • Casual workers receive a 25% loading

Standard Work Schedule

  • 7.6 hours/day, 38 hours/week, Monday–Friday

Employer Costs


8. Termination Process

Procedure

  • Must have fair and valid reason for termination

  • Contact Omnipresent before discussing with the employee

  • Submit a termination request via OmniPlatform for assessment

Notice Period

  • 1 to 4 weeks depending on service length

  • Payment in lieu of notice is allowed

  • Casual employees are not entitled to notice

  • Immediate termination requires serious misconduct (fraud, theft, etc.)

Severance Pay

  • Mutual agreements must exceed the value of the notice period


9. Invoice Schedule

Initial Fees

  • Setup Fees: Triggered upon signing terms

  • Deposit: Due when contract is ready to sign

  • First Salary Prepayment: Invoiced on employment start date

Ongoing Monthly Costs

  • Billed in arrears after payroll is completed

  • Invoices include:

    • Monthly service fee

    • Insurance (if applicable)

    • FX fee (if applicable)


10. Get Started with Omnipresent

Simplify compliant hiring in Australia with Omnipresent. We manage employment, contracts, benefits, payroll, and termination, so you can scale confidently.

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