Employer of Record (EOR) in Australia

Australia's employment framework is designed to balance operational needs with employee protections. Here's what you need to know:

Employment Types:

• Full-Time: 38 ordinary hours per week with full NES entitlements.

• Part-Time: Fewer than 38 hours per week on a regular and systematic basis; entitlements apply on a pro-rata basis.

• Casual: Engaged on an as-needed basis with a minimum 25% casual loading in lieu of certain entitlements. From 26 August 2024, casual employees may convert to permanent employment after 6 months of regular work (12 months for small business employers).

• Fixed-Term: Engaged for a specified period or project. From 6 December 2023, employers generally cannot engage an employee on fixed-term contracts for more than 2 years in total (including renewals) or for more than 2 consecutive contracts.

Probation Periods: There is no explicit legal maximum, but probation periods typically range from 3 to 6 months and must be outlined in the employment contract. Importantly, unfair dismissal protections under the Fair Work Act do not apply until the minimum employment period is reached — 6 months for large employers and 12 months for small business employers (fewer than 15 employees).

Working Hours & Overtime: The standard workweek in Australia is 38 ordinary hours. Employers can request reasonable overtime, but employees have the right to refuse unreasonable overtime requests. Overtime pay rates are set by the applicable Modern Award and commonly include time and a half (150%) for the first 2–3 hours on a weekday and double time (200%) thereafter. From 26 August 2024 (26 August 2025 for small business employers), employees have the right to disconnect; they may refuse to monitor, read, or respond to contact outside normal working hours unless the refusal is unreasonable.

Leave Entitlements

Payroll & Benefits: Wages are paid in AUD, with the national minimum wage set at AUD 1004.90 per week (AUD 26.44 per hour) effective 1 July 2025. Many employees are covered by modern awards that set higher minimum rates. Atlas HXM manages payroll, PAYG withholding, superannuation contributions (12% from 1 July 2025), statutory benefits, bonuses, and supplemental benefits such as private health insurance, salary sacrifice arrangements, and Employee Assistance Programs (EAPs).

Atlas HXM can help you manage these aspects and ensure that employees are supported and compliant with Australia's employment laws while businesses can focus on operations without administrative burdens.

Australia operates on a financial year running from 1 July to 30 June. Key employer tax obligations include monthly or quarterly PAYG withholding remittances to the ATO, quarterly superannuation contributions (due by the 28th of the month following each quarter), and state-based payroll tax returns generally due by the 7th of the following month. From 1 July 2026, employers must pay superannuation on the same day as wages (payday superannuation). Businesses should confirm their payroll systems are configured for this change immediately.

GST & EOR Costs: Australia applies a Goods and Services Tax (GST) at a standard rate of 10% on most goods and services. EOR service fees charged by Australian-based providers are generally subject to GST. Australian-registered businesses may be entitled to claim input tax credits for the GST component of EOR service fees, subject to normal GST rules. The GST registration threshold is AUD 75,000 in annual turnover.

Atlas HXM handles all tax compliance, including PAYG withholding calculations, Single Touch Payroll reporting, superannuation contributions, payroll tax management, and year-end income statement preparation — ensuring businesses remain compliant with Australian law while minimizing administrative burden.