RemotePad Logo

What is an Employer of Record

How to hire globally with an EOR

What is a Global PEO

An alternative to EOR

What is a PEO

Hire locally with a PEO

Our Methodology

Why you can trust our guides

Hire Globally

Find international talents

Outsource Recruitment

How to outsource recruitment

Work Visas

How to get a work visa

Digital Nomad Visas

Get a digital nomad visa

Best Employer of Record (EOR)

Hire globally with the best EOR companies

Best Contractor Management

Hire and pay contractors and freelancers

Best Global PEO

Discover the best international co-employers

Best PEO Companies

Save on payroll and HR costs

Best Background Check Companies

Screen employees before hire

Best Global Payroll Providers

Outsource international payroll

Best Relocation Services

Relocate employees internationally

International Company Registration

Get help to incorporate overseas

All Reviews

Compare all providers

1. Horizons

Best Global EOR

2. Remote

Best EOR for Compliance

3. Deel

Best EOR Platform

4. Papaya Global

Best EOR for Payments

All EOR Reviews

Compare all providers

Where do you need a service provider?

All Countries

Explore our detailed guides for professional advice on international growth, recruitment, compensations strategies, and a curated list of top service providers.

Australia EOR (Employer of Record)

An Australia EOR simplifies hiring, ensuring legal compliance, managing payroll, and providing benefits without needing a local entity.

Article Roundup

  • Understanding Australia’s Employer of Record (EOR) and its role in ensuring compliance with local laws
  • Advantages of using an EOR, including cost savings, streamlined processes & simpler compliance
  • Overview of legal frameworks to consider for navigating employment landscape in Australia: Fair Work Act & National Employment Standards. Anti-discrimination policies. Types & elements of compliant contracts. Employee benefits/leave entitlements. Visas/work permits.

Understanding Australia’s Employer of Record (EOR)

An Employer of Record (EOR) in Australia is a service that manages the following for businesses:

  • Legal formalities
  • Hiring
  • Onboarding
  • Payroll
  • Tax
  • Local laws

By utilizing an EOR, businesses can ensure compliance and reduce risks.

Further on, we will explore the role of an EOR in Australia and the benefits it brings to your expanding business in the country.

The role of an EOR in Australia

An EOR in Australia primarily handles:

  • Legal formalities
  • Hiring
  • Initiation
  • Payroll
  • Taxation
  • Local laws compliance

This helps reduce business risks and ensures statutory benefits provision for full time employees. One key responsibility is ensuring compliance with the national minimum wage, which is currently set at AU $20.33 per hour (or $722.60 per week for a full-time worker).

Additionally, an EOR can help a local entity ensure compliance with the maximum allowable work week in Australia, which is 38 hours. Handling these significant employment aspects, an EOR alleviates administrative burdens, lowers non-compliance risk with Australian regulations, and lets businesses concentrate on their core operations.

Advantages of using an EOR

Employing an EOR in Australia offers several benefits, including cost savings, streamlined processes, a decreased administrative burden, and simpler compliance with local regulations. For example, an EOR can assist with ensuring compliance with minimum wage and maximum work hour regulations, which can prevent costly fines and legal action.

Moreover, using an EOR can result in cost savings for employers in terms of hiring, onboarding, and payroll processing. Streamlining onboarding, payroll processing, and compliance with relevant regulations, businesses can concentrate on their core operations, reducing risk and enhancing efficiency.

Navigating Australia’s Employment Landscape

A solid understanding of Australia’s employment landscape is key to successfully expand your business in the country. Key factors to consider include the Fair Work Act and the National Employment Standards, the role of the Fair Work Commission, and the anti-discrimination policies in place.

These aspects will be further detailed in the upcoming sections.

Fair Work Act and National Employment Standards

The Fair Work Act and National Employment Standards are pivotal pieces of legislation that regulate employment in Australia, guaranteeing equitable treatment and protection for employees. These labor laws, including the National Employment Standards, specify that the standard work week is 38 hours.

The Fair Work Act, on the other hand, governs the employment relationship in private workplaces, providing a safety net of minimum entitlements and enabling flexible working arrangements to ensure the rights and responsibilities of both employees and employers are upheld.

Together, the Fair Work Act and National Employment Standards form the foundation for a fair and equitable employment landscape in Australia. Adherence to these regulations assures businesses that they are fostering a supportive and compliant work environment for their employees.

Key Dates in Employment Law of Australia
Key Dates in Employment Law of Australia

Anti-discrimination policies

The Australian government has stringent anti-discrimination policies in place to safeguard employees against unjust treatment based on variables such as:

  • Race
  • Gender
  • Age
  • Disability

These policies not only protect employees but also help create a diverse and inclusive work environment that benefits businesses and the broader community.

Disregarding anti-discrimination policies can lead to monetary fines, penalties, and other legal action. Therefore, it is crucial for businesses operating in Australia to familiarize themselves with these policies and ensure they are implemented and enforced within their workplace.

This leads to a supportive and inclusive work environment that can enhance employee satisfaction and productivity.

Employment Contracts and Compliance

Compliant employment contracts are a crucial requirement for businesses operating in Australia. Ensuring that all employee contracts adhere to local regulations can help protect both the employer and the employee, minimizing the risk of legal disputes and non-compliance.

This section will discuss the various types of employment contracts in Australia and the key elements required for compliance.

Types of employment contracts

In Australia, employment contracts may include awards, enterprise agreements, and individual contracts, each with its own requirements and regulations. The basic rate of pay, type of employment, rates for overtime work, annual salary, allowances and redundancy are all covered in awards. Other stipulations around leave, resignation and termination are included too..

Enterprise agreements are related to working conditions under an employer. It can relate to just a single-employer or multiple employers.

Individual contracts are legally binding agreements between an employer and an employee that outline the terms and conditions of employment, in accordance with the applicable legislation. Businesses need to acquaint themselves with the various types of employment contracts and their respective requirements for full compliance with Australian regulations.

Key elements of a compliant contract

When drafting a compliant employment contract in Australia, it’s crucial to include key elements such as:

  • Working hours
  • Compensation
  • Bonuses
  • Probationary periods
  • Termination
  • Severance

For example, working hours should align with the National Employment Standards’ 38-hour work week regulation, while compensation should meet or exceed the national minimum wage. Additionally, the minimum employment period should be considered.

Bonuses should be clearly stated in the contract and comply with relevant laws, while termination procedures should adhere to applicable regulations, including notice periods and severance payments.

Including these key elements in employment contracts helps businesses reduce the risk of non-compliance and legal disputes, thereby safeguarding both the employer and employee.

Employee Benefits and Leave Entitlements

In Australia, employee benefits and leave entitlements play a crucial role in attracting and retaining talent. Understanding these entitlements, such as paid parental leave, superannuation contributions, and workers’ compensation insurance, can help businesses establish a competitive benefits package for their employees.

These benefits will be explored in more detail in the upcoming sections.

Capterra Flexible Working Hours Survey 2023
Capterra Flexible Working Hours & 4-Day Work Week Survey 2023

Superannuation contributions

Employers in Australia are required to make superannuation contributions on behalf of their employees, currently set at 10.5% and gradually increasing. This contribution rate applies to employees earning more than AUD $450 per month and must be paid every quarter to a superannuation fund.

In addition to compulsory superannuation contributions, employers can also offer concessional and non-concessional contributions to their employees’ super funds. Offering a competitive superannuation package can help businesses attract and retain top talent, contributing significantly to their organization’s success.

Workers’ compensation insurance

Workers’ compensation insurance is mandatory in Australia and provides the following benefits for employees who suffer work-related injuries or illnesses:

  • Medical coverage
  • Financial support for medical expenses
  • Compensation for lost wages
  • Coverage for other associated costs resulting from work-related injuries or illnesses.

All employees in Australia are eligible for workers’ compensation insurance, and employers must apply for coverage through the applicable workers’ compensation authority in their state or territory. Ensuring the presence of workers’ compensation insurance allows businesses to protect their employees and show their commitment to employee well-being.

Onboarding and Hiring with an EOR

An Employer of Record in Australia can streamline the onboarding and hiring process, ensuring compliance with local laws and easing the administrative burden for businesses.

This section will discuss the benefits of using an EOR for onboarding and hiring, with a special focus on hiring foreign nationals.

Streamlined onboarding

An EOR in Australia can facilitate onboarding by providing compliant employment contracts, administering payroll, and ensuring compliance with local laws and regulations. These services not only save businesses time and resources but also ensure that all employees are treated fairly and in accordance with the law.

Partnering with an EOR gives businesses peace of mind that their onboarding processes are compliant and efficient, freeing them to concentrate on their core operations and growth strategies.

Hiring foreign nationals

Hiring foreign nationals in Australia can be complex, but an EOR can assist with visa processing, work permits, and compliance with local employment laws. By engaging an EOR in the hiring process, businesses can navigate the complexities of hiring foreign nationals while ensuring adherence to local laws and regulations.

Moreover, the EOR is responsible for:

  • Onboarding foreign nationals
  • Managing the ongoing employment of foreign nationals
  • Simplifying the process for businesses
  • Enabling businesses to successfully hire foreign nationals
  • Expanding their workforce in Australia

Termination and Redundancy

Termination and redundancy processes in Australia can be complex and require careful consideration of notice periods, severance payments, and protection against unfair dismissal. This section provides an overview of these processes and highlights the importance of complying with local regulations.

Employees in Australia are protected from terminations that are deemed harsh, unjust, or unreasonable under Australian employment law. The requirements for termination of employment in Australia must be consistent with the relevant employment contract and industrial instrument. If the employee doesn’t meet expectations during the probation period in Australia, their employer has the right to end their employment. A written notice of termination must be provided in accordance with the National Employment Standard.

Severance pay for termination in Australia can range from 4-12 weeks’ salary, depending on the number of years of service. Adherence to these regulations and processes can minimize the risk of non-compliance and legal disputes, safeguarding both the employer and employee.

Visas and Work Permits

Navigating the complex world of visas and work permits is a crucial aspect of hiring foreign nationals in Australia. This section provides information on the available types of visas and discusses how an EOR can assist with visa processing and compliance.

Visa availability in Australia is limited, and certain visa quotas imposed by various countries may impede an EOR’s ability to sponsor a foreign national employee. An EOR’s role in regards to visa processing and compliance involves:

  • Assessing feasibility and costs prior to applying for the work visa
  • Partnering with an EOR ensures businesses remain compliant with local employment laws
  • Successfully navigating the complexities of hiring foreign nationals

Payroll and Tax Management

Managing payroll and tax obligations is an essential aspect of doing business in Australia. Horizons is the Australia Employer of Record. Its responsibility includes withholding employee income taxes, paying payroll taxes to the relevant state authorities and filing tax returns with the Australian Tax Office..

Employers in Australia may be obligated to remit payroll taxes on wages, superannuation, and other employment benefits, with rates varying by region. Partnering with an EOR helps businesses ensure compliance with local tax laws and regulations, freeing them to concentrate on their core operations and growth strategies.

5 Best Australia EOR

  1. Deel: Deel offers a comprehensive suite of HR solutions, including payroll management, benefits administration, and compliance support. With their user-friendly platform and global expertise, Deel is an excellent choice for businesses looking for a streamlined PEO experience.
  2. Safeguard Global: Safeguard Global specializes in global employment solutions, providing end-to-end HR services for companies operating in multiple countries. Their technology-driven approach, coupled with local compliance knowledge, makes them a strong contender for Australian businesses with global operations.
  3. Papaya Global: Papaya Global offers a unified platform for managing global payroll, employment, and contractor compliance. Their robust technology and focus on automation make them an attractive option for businesses seeking a modern, efficient PEO solution.
  4. Horizons: Horizons is a leading PEO in Australia, offering a wide range of HR services tailored to meet the specific needs of businesses. Their personalized approach and commitment to compliance make them a trusted partner for companies across various industries.
  5. Remote: Remote specializes in helping businesses build and manage global teams seamlessly. With their expertise in remote work arrangements and compliance management, Remote is an ideal PEO for businesses navigating the complexities of distributed teams.

Professional Employer Organization (PEO) vs. Employer of Record (EOR)

As you expand your business in Australia, you’ll encounter two main service providers: Professional Employer Organizations (PEOs) and Employers of Record (EORs). Both offer valuable support for businesses, yet understanding their differing responsibilities, liabilities, and benefits is vital.

A PEO works in partnership with the employer, sharing responsibilities and providing support in areas such as HR operations. In contrast, an EOR serves as the legal employer, assuming all liabilities related to the employees and managing all aspects of the employment relationship, including payroll, tax compliance, and hiring.

Organizations typically collaborate with a PEO when they require ongoing support in enhancing their HR operations, while an EOR is more suitable for businesses looking to quickly and efficiently expand their workforce in Australia, particularly when hiring foreign nationals.


In conclusion, partnering with an Australian Employer of Record (EOR) can significantly simplify the process of expanding your business in the country. From navigating the complexities of local employment laws and regulations to streamlining onboarding, hiring, and payroll management, an EOR can help ensure your business remains compliant while allowing you to focus on growth and success in the Australian market.


An Australian Employer of Record is a third-party organization that acts as the legal employer of a company's workforce, assuming all employer-related responsibilities and tasks on their behalf.

An employer of record is a third-party organization that acts as the primary employer for a worker or group of workers, responsible for payroll, benefits, taxes, and other HR-related functions. On the other hand, a Professional Employer Organization (PEO) acts as a co-employer with the client company, but does not assume the same level of legal liability as an employer of record.

An employer of record (EOR) is a third-party organization that acts as the legal employer for an employee, taking on all employer-related responsibilities and liabilities. As an example, an EOR in Spain can hire employees on behalf of a company based in the United States, with the EOR in Spain assuming all legal responsibilities of employment.

Employer of Record (EOR) is a third-party service in Australia that acts as the legal employer for a worker, taking care of all compliance related to payroll, taxes, benefits, and contracts. This allows companies to employ full-time workers in Australia without having to set up their own entity.

An EOR can help with the hiring of foreign nationals in Australia by providing assistance with visa processing, obtaining work permits, and adhering to local employment laws.

cropped Travis Kliever 1
Article By
Travis is a global business development advisor. He has spent the last 14 years supporting business establishment and development in North America, Southeast Asia, and throughout the world. With multiple degrees from the University of Oregon, Travis currently splits his time between the US, and Bali, Indonesia. At RemotePad, Travis writes about remote work, hiring internationally and PEO/EOR business models.