Employer of Record, explained
Hire in Australia without setting up a company.
Independent, plain-English guides to Employer of Record (EOR) services in Australia: what they do, what they really cost and how to choose one safely.
- 12%super on top of salary
- 11National Employment Standards
- 8payroll tax regimes
- 12% Superannuation Guarantee
- Payday Super from 1 July 2026
- National Minimum Wage $26.44 an hour
- 11 National Employment Standards
- Unfair dismissal threshold $190,100
- Right to disconnect for all employers
- 8 payroll tax regimes
- Payslips within 1 working day
Is an EOR right for you?
Who uses an Employer of Record
Overseas companies
Hire your first Australian employee before registering a local entity.
Growing teams
Add people in another state without new registrations and insurance.
Contractor conversions
Move "contractors" who work like employees onto proper employment.
Fast starts
Get a compliant contract issued in days, not months.
How it works
Three steps from offer to payday
- 01
Agree the terms
You choose the person and salary. The EOR confirms the award, quotes every on-cost and signs a service agreement with you.
- 02
The EOR employs
It issues the contract, checks work rights, collects tax and super details and adds your hire to its insurance.
- 03
You manage, it pays
You direct the work. The EOR runs payroll, pays super with every pay and invoices you monthly.
Guides
Everything you need to decide
Written for business owners, founders and HR leads. Every figure is checked against official Australian sources.
What is an Employer of Record?
An Employer of Record (EOR) legally employs your staff in Australia while you manage their day-to-day work.
Read guideHow an Employer of Record works
Step by step: how hiring through an Employer of Record in Australia works, from the first quote to onboarding, monthly payroll and ending employment properly..
Read guideWhat does an Employer of Record cost?
EOR pricing in Australia explained: service fee models plus the real employment on-costs of superannuation, payroll tax, workers' compensation and leave..
Read guideEOR vs PEO vs contractor vs your own entity
Compare the four ways to engage people in Australia: Employer of Record, PEO, independent contractor and setting up your own entity.
Read guideContractor or employee?
How Australian law decides whether a worker is an employee or an independent contractor, what sham contracting is and how an Employer of Record reduces the risk..
Read guideHiring in Australia: the employer checklist
Everything an employer must get right when hiring in Australia: awards, the National Employment Standards, super, PAYG, payroll tax, workers' compensation and record-keeping..
Read guideHow to choose an Employer of Record
A practical checklist for choosing an Employer of Record in Australia: licences, insurance, contract terms, pricing transparency, red flags and the questions to ask..
Read guideEmployment cost calculator
Salary, super, payroll tax, workers' compensation and fees by state.
Open calculatorGlossary
Awards, NES, STP, Payday Super and the other terms you will meet.
Browse terms2026 changes
What is new for Australian employers
- Payday Super, 1 July 2026. Super must now be paid with every pay and reach the fund within 7 business days.
- National Minimum Wage, 1 July 2026. $26.44 an hour or $1,004.90 a week.
- High income threshold, 1 July 2026. $190,100 for unfair dismissal protection.
- Right to disconnect. Applies to small businesses since 26 August 2025.
FAQ
Common questions
What is an Employer of Record?
An Employer of Record (EOR) is a business that legally employs someone on your behalf. It handles the contract, payroll, tax, super and compliance, while you manage the person's day-to-day work.
Do I need an Australian company to use an EOR?
No. That is the main reason overseas businesses use one. The EOR uses its own Australian entity and registrations.
How much does an EOR cost in Australia?
You pay the full employment cost (salary, super, payroll tax and workers' compensation) plus a service fee, usually a fixed monthly amount per employee. Our calculator estimates the employment cost.
Is an EOR better than hiring a contractor?
If the person works like an employee, an EOR removes the misclassification risk. A genuine independent contractor running their own business can still be engaged directly.
How quickly can someone start?
For an Australian citizen or permanent resident, often within a few business days once the service agreement is signed. Visa sponsorship takes much longer.
Who handles dismissal?
The EOR, as legal employer. You should raise concerns with the EOR early and never end the employment yourself.
Have a question about hiring in Australia?
Tell us what you are trying to do. We will reply with straightforward information and the questions you should be asking providers.