Glossary of Australian employment terms

The acronyms and terms you will meet when hiring in Australia or reading an EOR quote.

ABN: Australian Business Number. An identifier for businesses dealing with the ATO and other agencies.
Award (modern award): A legal document setting minimum pay and conditions for an industry or occupation, made by the Fair Work Commission.
Enterprise agreement: An agreement between an employer and its employees, approved by the Fair Work Commission, setting pay and conditions that must leave employees better off overall than the award.
EOR (Employer of Record): A business that legally employs a worker on behalf of another business (the host), which directs the work.
FWIS: The Fair Work Information Statement, which every new employee must be given.
Host: The business the employee works for day to day under an EOR or labour hire arrangement.
Labour hire: An arrangement where a provider supplies its workers to work for a host. Licensing applies in some states and territories.
Leave loading: An extra payment, often 17.5%, on top of base pay during annual leave, where an award or agreement requires it.
NES: The National Employment Standards: 11 minimum entitlements for employees in the national workplace relations system.
PAYG withholding: Pay As You Go: income tax an employer withholds from wages and pays to the ATO.
Payday Super: The rule, from 1 July 2026, that super must be paid with each pay and reach the fund within 7 business days.
Payroll tax: A state and territory tax on wages paid above a threshold.
PEO: Professional Employer Organisation. A co-employment model common in the United States and rare in Australia.
Right to disconnect: An employee's right to refuse to monitor or respond to work contact outside working hours unless the refusal is unreasonable.
Sham contracting: Disguising an employment relationship as an independent contracting arrangement. Unlawful under the Fair Work Act.
STP: Single Touch Payroll. Reporting of pay, tax and super information to the ATO each time employees are paid.
Superannuation Guarantee (SG): The compulsory minimum super contribution employers pay, currently 12% of ordinary time earnings.
TFN declaration: The form a new employee gives an employer with their tax file number and tax details.
VEVO: Visa Entitlement Verification Online, the Home Affairs service for checking a visa holder's work rights.
Workers' compensation: Compulsory state or territory insurance covering wages and medical costs for workers injured at work.

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