Current Region & Language
Current Region & Language
Current Region & Language
Currency
Australian Dollar (AUD)
Employer Taxes
Employers pay 11.5% of employee earnings for Superannuation (pension contributions).
Payroll Frequency
Monthly, fortnightly, weekly
Language
English
Date Format
DD/MM/YYYY
Australia By The Numbers
26 million
Population
AUD 2 trillion
GDP
9
National Holidays
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Weekly Working Hours
National Holidays
Leave
Full-time and part-time employees accrue 4 weeks of annual leave based on their ordinary hours of work. All employees, except casuals, are entitled to paid sick and careers leave, with full-time employees receiving 10 sick days per year. The leave is provided on a pro-rata basis for part-time employees. Employees are also entitled to 2 days of bereavement leave, including casual employees. Regarding parental leave, employees, including casuals who have worked for 12 months, are eligible for up to 12 months of unpaid leave when a child is born or adopted. Paid parental leave can be provided as per the employment contract, and the leave may be further extended by an additional 12 months.
All employees are entitled to 10 days of paid family and domestic violence leave each year. This includes full-time, part time and casual employees.
Employment Contracts
No. There is no legal mandate to have a written employment contract. However, employers are required to provide a fair work information sheet to the employees.
Types of Employment
There are two types of employment: Employees and Independent Contractors
Employment Costs
IC Class Factors
A Whole of Relationship test is used by constitutionally covered businesses, while a Start of Relationship test is used by state-referred businesses and constitutionally covered businesses when determining whether a worker is a contractor or an employee. The Start of Relationship test applies for work performed before 26 August 2024, or if the worker opted out of the Whole of Relationship test.
Labor Leasing
Labour hire license is required in Victoria, Queensland and ACT for labor hire businesses. In SA it applies to some non-white collar industries.
Minimum Wage Requirements
The national minimum wage at July 1, 2024 is $24.10 AUD per hour (before tax).
Every year, the Fair Work Commission (FWC) Expert Panel reviews the minimum wages received by employees. At the end of this review, a national minimum wage order is made which will apply from the first full pay period on or after July 1st each year.
Casual employees covered by the national minimum wage also get a 25% casual loading.
Medical Benefits
There are no specific medical benefits requirements.
Probationary Periods
There is no legally mandated probation period. It is at the employer’s discretion and typically ranges from 3 to 6 months.
Termination Notice
Under the Fair Work Act 2009, the minimum notice period for termination depends on the employee’s length of continuous employment, ranging from 1 to 4 weeks, with the possibility of a longer notice period specified in the employment contract, agreement, or Award. If not confirmed in a written contract, non-Award-covered employees may be entitled to “reasonable notice,” potentially up to 12 months based on factors like seniority and service length. Employees over 45 with at least 2 years of service are entitled to an additional week’s notice. Employers can generally pay in lieu of notice.
Severance
Redundancy pay is not payable to employees with less than 1 year of continuous service, casual employees, or where the employer is a small business (i.e. employs fewer than 15 employees).
The amount of redundancy pay payable to an employee is calculated by reference to their length of continuous employment.
Pre-hire Checks
Pre-hire checks are legal and must comply with privacy laws that mandate obtaining consent for use of personal data. Right to work checks are required to ensure the employee has legal status to work in Australia. Other types of pre-hire checks (depending on the nature of employment and industry) are: Criminal record checks, reference checks, employment history, working with children check etc.
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Legal Disclaimer
The information provided on this website is for general informational purposes only and is subject to change without notice. The content on this website is not intended to be a substitute for professional legal advice, diagnosis, or treatment. While we strive to keep the information up to date and accurate, People 2.0 makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
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