Hiring in Australia

The terms set out role, salary in AUD, working time, leave, notice and any restrictive covenants, and they cannot undercut the National Employment Standards or any modern award covering the role. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

English is the standard contract language. Non-compete clauses for employees under the high income threshold are set to be banned from 2027, so check any restraint before you rely on it.

Fixed-term contracts are limited to two years or two consecutive contracts, whichever is shorter, unless an exception such as earnings above the high income threshold applies. Most EORs default to ongoing employment.

Set probation from day one. Unfair dismissal protection starts after six months' service, or 12 months where the employer has fewer than 15 staff, however long the probation runs. General protections claims are available from day one.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Where an award applies, overtime usually starts at 1.5 times the base rate and moves to double time after the first two or three hours.

Many professional roles are still award-covered, so overtime can apply even on a salary. An annualised salary clause can absorb overtime into pay, and a guarantee of annual earnings above the high income threshold takes the role outside the award. Put the position in writing either way.

Market practice for professional roles is close to the statutory 20 days, though some employers add a few more. Many awards add a 17.5% leave loading and unused leave is paid out on exit, so include both when you budget.

Personal/carer's leave covers both illness and caring for family members. Paid Parental Leave is government funded for up to 26 weeks at the national minimum wage and is normally paid through the employer's payroll, so confirm whether the EOR expects you to fund any top-up.

Either side may terminate on notice, and the employer can pay in lieu. Redundancy pay follows a fixed statutory scale of 4 to 16 weeks' pay for employees with at least a year's service, and the role must genuinely no longer be needed.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and any redundancy pay. Unfair dismissal claims open after the minimum employment period for employees under the high income threshold or covered by an award, so keep a documented reason.

Private health cover is not a standard benefit because Medicare covers public healthcare. Default life and income protection cover usually comes through the employee's super fund, and workers' compensation insurance is compulsory in every state.

EORs often add perks such as an employee assistance programme or salary packaging. Ask what is included in the fee and what is billed on top.

Employer contributions add 12% super on top of gross salary, plus state payroll tax of roughly 4% to 7% above each state's threshold and workers' compensation premiums. That is before the EOR fee. Since 1 July 2026, super must reach the employee's fund within seven business days of each payday.

Package quotes are the trap. Australian salaries are often quoted as a total package that already includes super, so confirm base pay and super separately before you approve a budget.

Ask whether the EOR sponsors directly or refers to a partner. Standard sponsorship does not allow on-hire arrangements, so an EOR placing a sponsored worker with your business generally needs an on-hire labour agreement, and few hold one. Income thresholds and the Skilling Australians Fund levy apply to the sponsor, not to you.

Set start dates after approval, not before.

Get the data handling terms in the service agreement, not just the privacy notice. Cross-border disclosures can leave the sender accountable for how the recipient handles the data.

Ask where payroll data is hosted and who in the partner chain can see it.

Registering a company with ASIC is quick, but the running cost is the point: a resident director, ASIC annual fees, accounting, audit rules for foreign-controlled companies, payroll tax registration and payroll software set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.