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Global Expansion Guide

Australia

Manage and pay your employees easily with BIPO in Australia and 170+ other markets. Build your international teams today with our global Employer of Record service!

employment guide_currency

Currency

Australian Dollar (AUD)

employment guide_language

Language

English

employment guide_capital

Capital

Canberra

Employer of Record Australia

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Australia

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Employer of Record Australia

Embark on your business expansion in Australia with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Australian market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

This guide was last updated on 23 September 2025. The content in this guide is current as of this date and based on common business practices.

Employment Contract

Types of Contracts

There are mainly two types of employment contracts in Australia:

  • Permanent Contracts: Employees remain employed until the employment relationship is terminated.

  • Fixed-Term Contracts: Employees are engaged for a specific period or to complete a specific task.

    • Information Disclosure: When entering into a fixed-term contract, the employer must provide the employee with a Fixed-Term Contract Information Statement.
    • Usage Restrictions: Certain rules limit the use of fixed-term contracts to prevent misuse. These restrictions do not apply to all fixed-term contracts and are not applicable to casual employees.

Format of Contract

Employment contracts may be either written or verbal.

Other Provisions

An employment contract must not confer fewer entitlements than those required by law, including the National Employment Standards (NES), relevant awards, enterprise agreements, or other registered agreements. All employees are protected by the NES, irrespective of whether a contract has been signed. The contract must ensure that employees receive no less than the minimum entitlements prescribed by law.

Statutory Contributions

Scope of Application: Applicable to employees of private enterprises.

Type of Social Insurance Cap Employee’s Contribution Employer’s Contribution
Superannuation (Pension Fund) 30,000 AUD – 12%
Worker’s Compensation (Work Injury Insurance) – – Determined by the employer’s chosen scheme
Work Health & Safety – Determined by the employer’s relevant policies

Minimum Wage

Effective Date: 1 July 2025

Hourly Rate / AUD 24.95 AUD
Weekly Rate / AUD (Based on 38-hour Standard Weekly Working Hours) 948 AUD

Public Holidays

The public holidays in Australia for 2025 are listed below. Please refer to official announcements from the Australian government for the latest updates.

Holiday NameDate
New Year’s Day1 January 2025
Australia Day27 January 2025
Canberra Day10 March 2025
Good Friday18 April 2025
Easter Holiday19 April 2025
20 April 2025
21 April 2025
Anzac Day25 April 2025
Reconciliation Day2 June 2025
King’s Birthday9 June 2025
Labour Day6 October 2025
Christmas Day25 December 2025
Boxing Day26 December 2025

Note: Employees who work on a public holiday or a substituted public holiday are entitled to public holiday overtime pay. However, if an employee works on both days of the same type of holiday, the public holiday rate may only be applied to one day, and the employee may choose which day it applies to.

Overtime Compensation: Overtime pay must be calculated in accordance with the relevant industry award, taking into account the nature of the employment and the position. By mutual agreement, time off in lieu may be provided in place of overtime pay.

Exemptions from Overtime (on public holidays) Compensation: Any exemptions are determined in accordance with the provisions of the relevant industry award, based on the nature of the employment and the role.

Working Hours

Normal Working Hours

Per DayPer Week
By agreed arrangement38 hours

Rest Time

Awards, enterprise agreements, and other registered agreements provide employees with paid and unpaid rest periods and meal breaks. 

For example, under the Retail Industry Modern Award 2020, for full-time employees in workplaces with at least 15 employees regularly working each week, the employer must not require an employee to work more than 19 days within any four-week period.

Overtime Compensation and Exemption

Overtime pay is determined in accordance with the relevant industry award, taking into account the nature of the employment and the employee’s role.

Exemptions from Overtime Compensation

Any exemptions are also determined by the provisions of the relevant industry award, based on the nature of the employment and the position.

Leave

Annual Leave

  • Employer Type: Single Employer
  • Eligibility: Completion of 1 year of employment
  • Duration: 4-5 weeks per year
  • Entitlements During Leave: Paid at 100% of the employee’s salary
  • Pro-rata Leave on Termination: Employees are entitled to payment for any unused annual leave upon termination of the employment contract

Sick Leave

  • Eligibility: Completion of 1 year of employment
  • Length of Leave: 10 days per year
  • Sick Leave Benefits: Paid at 100% of the employee’s salary

Maternity Leave

  • Eligibility: Employees (excluding casual employees) who have completed 1 year of employment

  • Duration and Benefits:

    • Paid parental leave is available for up to 18 weeks (approximately 126 days) at 100% of the national minimum wage, funded by the government.
    • Unpaid parental leave is available for up to 12 months.
    • From 1 July 2025, eligible parents in Australia can receive up to 24 weeks (120 days) of government‑paid Parental Leave Pay when a child is born or adopted, increasing to 26 weeks (130 days) from 1 July 2026. The payment is made at the national minimum wage rate and can be shared between parents.

Other Leave Types

  • Career’s Leave: Employees may take paid or unpaid leave to care for an immediate family member or household member.
  • Bereavement Leave: Employees are entitled to 2 days of leave per occurrence in the event of the death of an immediate family member or household member. Leave may be taken consecutively or in parts, as agreed with the employer.
  • Domestic Violence Leave: All employees affected by domestic violence are entitled to 10 days of paid leave per year.
  • Community Service Leave: Employees may take leave to participate in voluntary emergency management activities or serve on a jury.
  • Long Service Leave: Employees who have worked for the same employer for 7–15 years are entitled to a specified number of days of paid long service leave.

Termination and Compensation

Notice Period

Length of Service Notice Period (Payment in Lieu of Notice)
< 1 year of continuous employment 1 week
≥ 1 but < 3 years of continuous employment 2 weeks
≥ 3 but < 5 years of continuous employment 3 weeks
≥ 5 years of continuous employment 4 weeks
Employers aged ≥ 45 who have worked for at least 2 years An additional 1 week

Compensation

Length of Continuous Service Compensation
≥ 1 but < 2 years 4 weeks
≥ 2 but < 3 years 6 weeks
≥ 3 but < 4 years 7 weeks
≥ 4 but < 5 years 8 weeks
≥ 5 but < 6 years 10 weeks
≥ 6 but < 7 years 11 weeks
≥ 7 but < 8 years 13 weeks
≥ 8 but < 9 years 14 weeks
≥ 9 but < 10 years 16 weeks
≥ 10 years 12 weeks

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation:
    The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management:
    We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Australian regulations.
  • Contributions and Taxes:
    Our expertise in managing local social security requirements ensures your business complies with in-country financial obligations.
  • Compliance with Minimum Wage and Working Hours:
    We guarantee that your employment practices adhere to Australia’s minimum wage and working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management:
    Implement and manage leave policies that comply with Australia’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance:
    Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services:
    Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in Australia

Unlock your growth potential with BIPO’s Employer of Record service in Australia. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams
A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities. When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs. Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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