Hiring Talent And Managing Payroll In Australia

Agreements

• The Fair Labor Act regulates employment agreements in Australia.
• It must be well-written with all the necessary employment information. Conditions like termination, duty, employment length, and rights should be mentioned.
• There are two types of contracts in Australia: definite or fixed contracts and indefinite or open-ended contracts.
• Indefinite or open-ended contract - A contract with no fixed end date is called an indefinite contract. It is mutually agreed upon and can be terminated by both parties. An employee can terminate the contract without stating a specific reason. The employer has to state a valid reason for termination. This includes permanent and full-time employees.
• Definite or fixed-term contract - A contract that ends on a fixed date is called a fixed-term contract. This type of contract is for a distinct kind of work. It includes full-time, part-time, contractual, and short-term employees.

Onboarding Process

• The company will collaborate with its HR team if there is a job vacancy. A job description is prepared, which has details about the job.
• Once the appropriate description is prepared, it is uploaded on the company's official sites and other platforms.
• The employer may choose to publish the vacancy in local newspapers and magazines.
• Candidates submit their applications by verifying their eligibility criteria.
• The HR team shortlists candidates on the given criteria and rounds of assessments.
• Final shortlisted candidates can negotiate with the employer regarding the job. Once both parties reach an agreement, the candidate is hired as an employee.

Minimum Wage

Payroll Cycle

Annual Bonus

Health Benefits

• The Work Health and Safety Act 2011 oversees the health and work benefits at the workplace. It ensures healthy working conditions for employees.
• The act also checks the basic health and medical facilities given to employees.
• The Australian government is responsible for providing health insurance to employees.

Working Hours and Overtime

• Work hours: The regular work hours in Australia are 7.6 hours per day. An employee has to work 38 hours per week. The working week is from Monday to Friday.
• Break: An employee is entitled to 20 or 30 minutes of unpaid break time during work hours per day. Employees must get a rest period of 8 to 10 hours per day between continuous work.
• Overtime: Overtime in Australia depends on the mutual agreement between employer and employees. The payment is granted per the mutual agreement.

Social Security

• The employee has to contribute about 10% towards social security.
• An employee has to contribute 10.5% towards superannuation. It is a compulsory tax.

Taxes for Employees

Termination

• Termination of employment in Australia is a lengthy process. The employer has to state a valid reason for termination.
• The employer must provide notice before terminating an employee. The notice period depends on the tenure of work of an employee. It may range from 1 week to 4 weeks.
• An employee does not need to state the reason for resigning.

Severance Pay

Employees or Contractors

• A person who works for a company and gets paid is called an employee.
• An organization or company that hires employees is the employer.
• There are two types of recognized employment in Australia- employees and self-employees.
• A penalty is imposed if an employer is found guilty of an employee's misclassification.
• The employer has to pay all legal benefits to such a misclassified employee.
• The employer has to pay all taxes and other contributions on behalf of the employee.

Final Words