Introduction
Australia is a stable, innovation-driven economy with strong trade links to Asia-Pacific, making it a strategic hub for regional growth. Backed by a transparent regulatory system, skilled workforce, and robust infrastructure, it offers an attractive environment for global investors.
With rising demand in sectors like renewable energy, technology, healthcare, and advanced manufacturing, Australia presents significant opportunities for businesses seeking long-term expansion.
EOR & PEO Solutions in Australia
If you’re looking to hire employees in Australia without setting up a legal entity, using an Employer of Record (EOR) like Empleyo is the simplest and most compliant path forward. An EOR in Australia acts as the official legal employer on your behalf, managing everything from payroll and HR administration to employment contracts and statutory employee benefits.
This model allows you to expand into Australia quickly, while remaining fully compliant with local labor laws — without the complexity or cost of registering a local entity.
What Is an Employer of Record in Australia?
An Employer of Record Australia (also known as an EOR provider) enables businesses to hire and onboard Australia employees without having to incorporate in-country. The EOR manages:
- Employment contracts in Australia
- Monthly payroll and tax filings
- Statutory benefits in Australia (like social insurance and leave)
- Ongoing HR and compliance responsibilities
What’s the Difference Between EOR and PEO?
A Professional Employer Organization (PEO) typically supports businesses that already have a registered entity in Australia, offering co-employment solutions for HR, payroll, and benefits. An EOR, however, is ideal when you don’t have a legal presence in Australia but still want to hire full-time staff.
Whether you choose an EOR or PEO depends on your Australia hiring strategy, budget, and long-term plans for the market.
Benefits of Using an EOR Service in Australia
- Hire employees in Australia faster, with no setup delays
- Stay compliant with Australian labor and tax laws
- Avoid the cost of forming and maintaining a local entity
- Access local expertise in employment law and payroll in Australia
- Simplify HR management while maintaining control over your team
By using an EOR solution, companies can confidently build their team in Australia, access top talent in Australia, and stay focused on business growth — without getting tangled in bureaucracy.
Hiring in Australia
Australia is a thriving market with a growing pool of skilled professionals, making it an ideal destination for businesses looking to expand globally. But to hire in Australia successfully, it’s important to understand your options — especially when you don’t have a legal entity in Australia.
That’s where using an Employer of Record in Australia makes all the difference.
Your Hiring Options in Australia
Businesses have two main paths to hire employees in Australia:
- Register a local entity, manage payroll and HR directly, and take on full legal responsibility.
- Use an Employer of Record (EOR) — a third-party EOR provider that acts as the legal employer in Australia on your behalf.
The second option is faster, lower-risk, and ideal for companies that want to test the Australian market, launch quickly, or hire remote employees without permanent infrastructure.
Why Use an EOR to Hire in Australia?
- Drafting and executing employment contracts in Australia
- Managing Australia payroll and mandatory contributions
- Handling employee benefits as required under Australian labor law
Employment in Australia
Understanding how employment in Australia works is key to managing your team successfully and staying compliant. Whether you’re hiring directly or using an Employer of Record (EOR), companies must follow Australian labor laws closely — especially when it comes to employment contracts, payroll, and employee benefits.
That’s why many growing businesses choose to use an EOR in Australia to handle these responsibilities with confidence.
Employment Contracts in Australia
All employees in Australia must be hired under a written employment contract, clearly outlining the job role, salary, benefits, working hours, and duration of employment. Contracts must comply with the Labor Code of Australia, and are usually signed before or on the first day of work.
By working with a Australia employer of record, you can ensure that all employment contracts in Australia are properly structured, compliant, and aligned with local requirements — without having to hire a full in-house HR team.
Payroll & Employer Contributions
Payroll in Australia involves more than just paying a monthly salary. Employers are required to withhold income tax and make contributions to:
- Superannuation
- Workers' Compensation Insurance
- Fringe Benefits
These deductions and employer contributions are calculated based on the employee’s gross monthly salary, and must be submitted on time to remain compliant. An EOR in Australia handles this for you — managing all payroll, tax filings, and reporting on your behalf.
Employee Benefits and Leave
Australian labor law mandates several employee benefits, including:
- Annual (Paid) Leave
- Personal/Carer's Leave (Sick Leave)
- Parental Leave
- Public Holidays
- Long Service Leave
- Overtime Compensation
Using an employer of record service ensures your team in Australia receives all required benefits — and that your business remains fully compliant with Australian employment law.
Termination & Notice Periods
Ending an employment contract in Australia requires compliance with the Fair Work Act, which sets clear rules around termination and notice periods. Employers must provide written notice (or payment in lieu) based on the employee’s length of service, typically ranging from 1 to 4 weeks, with an additional week for employees over 45 who have served at least two years. In cases of serious misconduct, termination may be immediate without notice. Partnering with an Employer of Record ensures these obligations are managed correctly, reducing compliance risks while supporting fair and transparent offboarding.
Visas & Permits in Australia
If you’re planning to hire employees in Australia or bring in foreign talent, understanding Australia’s visa and permit requirements is critical. Navigating these processes can be complex, but working with a trusted Employer of Record (EOR) in Australia makes it much easier.
An experienced EOR provider will ensure all permits are handled legally, so you can focus on building your team in Australia with confidence.
Work Permits for Foreign Employees in Australia
Foreign nationals who plan to work in Australia must secure the appropriate work visa, which is typically sponsored by an approved employer and aligned with specific skill needs. Visa options vary by role, sector, and duration, with strict eligibility and compliance requirements set by the Department of Home Affairs.
Engaging an Employer of Record streamlines this process by handling sponsorship, documentation, and ongoing compliance, allowing businesses to onboard global talent quickly and efficiently while minimizing legal and administrative risks.
Types of Visas for Foreign Talent
The Australian visa system for foreign workers includes various subclasses (e.g., Temporary Skill Shortage visa subclass 482, Skilled Independent visa subclass 189). An employer must ensure their employee in Australia holds the correct visa for their work.
When you hire international talent, the visa process can be complex. An employer of record in Australia can simplify this. By using an EOR, you can hire employees without becoming a direct visa sponsor. The employer of record becomes the legal employer and handles the visa application and compliance on your behalf. This makes it a seamless way to hire employees in Australia.
An EOR Australia solution can help you identify the right visa and manage the end-to-end application. To find the best employer of record, look for one with a strong background in Australian immigration law.
Business Permits for Foreign Companies
To operate directly in Australia, foreign companies typically need to register a legal entity in Australia and apply for a business license. This can be a time-consuming process that includes office registration, investment approvals, and compliance with Australian labor laws.
Alternatively, you can use an EOR in Australia to bypass the need for a local entity. The Australia employer of record is already registered and authorized to employ staff and manage payroll, contracts, and local compliance — making it easier and faster to hire employees in Australia.
Why Visas & Permits Matter for Global Hiring
If you’re hiring foreign employees in Australia, or placing international staff in-country, it’s essential to stay compliant with immigration laws. The right employer of record service helps you:
- Avoid visa delays or permit denials
- Ensure alignment with Australian employment law
- Quickly hire and onboard top talent without risk
- Operate legally, even without a registered entity in Australia
Common Questions on EOR in Australia
Yes, Employer of Record services are fully legal in Australia, provided they comply with the Fair Work Act, employment standards, and tax/superannuation regulations. A reputable EOR ensures all employment contracts, payroll, and statutory obligations are aligned with Australian labor laws.
Employees are fully protected under Australian labor laws, including the National Employment Standards (NES), modern awards, and workplace health and safety regulations, regardless of being hired through an EOR.
An EOR can hire both full-time and part-time employees as well as fixed-term staff, provided employment contracts comply with the Fair Work Act and relevant industry awards. Contractors may also be engaged, though proper classification is essential.
Onboarding through an EOR is significantly faster than setting up a local entity, often taking only a few days to a couple of weeks, depending on the employee’s status (local or requiring a visa).
Yes, EORs ensure the correct superannuation guarantee contributions are made to employees’ nominated funds, currently at 11% of ordinary time earnings, and manage increases as mandated by law.
