Before the start date
- Check work rights. Every worker needs the right to work in Australia. For visa holders, check conditions through VEVO. Sponsored skilled hires generally use the Skills in Demand (subclass 482) visa, which needs an approved sponsor.
- Find the award. Most employees are covered by one of more than 100 modern awards, which set minimum pay, overtime, penalty rates and allowances. Some senior or professional roles are award-free.
- Check minimum pay. The National Minimum Wage is $26.44 an hour ($1,004.90 a week) from 1 July 2026. Award minimums for the classification are usually higher.
- Write the contract. A written contract is not legally required but is standard. Fixed-term contracts are generally limited to 2 years or 2 consecutive contracts.
- Give the information statements. Every new employee gets the Fair Work Information Statement, plus the Casual or Fixed Term Contract Information Statement where relevant.
- Collect forms. A tax file number declaration and the employee's choice of super fund (or their stapled fund details from the ATO).
- Insure. Hold workers' compensation insurance in each state or territory where you employ people.
Every pay
- Pay at least the minimum for the award classification, including overtime and penalty rates where they apply.
- Withhold PAYG income tax and report through Single Touch Payroll.
- Pay super with the wages. The Superannuation Guarantee is 12% of ordinary time earnings. Since 1 July 2026 (Payday Super) it must reach the fund within 7 business days of payday.
- Issue payslips within one working day of payday.
- Keep records of hours, pay, leave and super for 7 years.
- Pay payroll tax once total Australian wages pass your state's threshold.
The National Employment Standards
The NES are 11 minimum entitlements that apply to most employees, whatever their award or contract says.
| Entitlement | Minimum |
|---|---|
| Maximum weekly hours | 38 ordinary hours plus reasonable additional hours |
| Annual leave | 4 weeks a year (5 for some shift workers), paid out on termination |
| Personal/carer's leave | 10 days paid a year, plus 2 days unpaid carer's leave per occasion |
| Compassionate leave | 2 days paid per occasion |
| Family and domestic violence leave | 10 days paid a year |
| Parental leave | Up to 12 months unpaid after 12 months' service, with the right to request 12 more |
| Community service leave | Jury service and voluntary emergency activities |
| Long service leave | Under state and territory laws, usually after 7 to 10 years |
| Public holidays | A paid day off, or penalty rates if reasonably asked to work |
| Notice and redundancy pay | 1 to 4 weeks' notice by service (plus 1 week if over 45 with 2+ years); redundancy pay of 4 to 16 weeks |
| Flexible work and information statements | Right to request flexible arrangements; FWIS for every new starter |
Government Parental Leave Pay of up to 26 weeks from 1 July 2026 is paid through Services Australia, not by the employer.
During employment
- Respect the right to disconnect. Employees can refuse to monitor or respond to contact outside working hours unless the refusal is unreasonable. This matters if your head office is in another time zone.
- Manage safety. Work health and safety duties apply to home offices too.
- Prevent sexual harassment. Employers have a positive duty to take reasonable and proportionate steps to eliminate it.
Ending employment
- Give notice or pay in lieu, as set by the NES, award or contract, whichever is greater.
- Follow a fair process. After the minimum employment period, employees covered by an award or agreement, or earning under the high income threshold of $190,100, can claim unfair dismissal. General protections apply from day one.
- Pay out untaken annual leave and any redundancy pay in the final pay.
Frequently asked questions
Do I need an ABN to employ someone in Australia?
To employ directly you generally need to be registered with the ATO for PAYG withholding, which requires an ABN. An EOR uses its own registrations, so you do not.
Are employees paid weekly or monthly?
Australian employees are commonly paid weekly, fortnightly or monthly. Awards may set the pay frequency for award-covered roles.
