Hiring in Australia

Australia's employment framework runs on the Fair Work Act 2009, which covers the vast majority of private-sector workers across the country. It's administered by the Fair Work Commission and enforced by the Fair Work Ombudsman. The Act sets up the National Employment Standards (NES), which are 11 minimum entitlements that apply to all employees covered by the national workplace relations system. These include maximum weekly hours (38 for full-time), requests for flexible working arrangements, parental leave, annual leave, personal/carer's leave, community service leave, long service leave, public holidays, notice of termination and redundancy pay, the Fair Work Information Statement, and superannuation.

On top of the NES, Australia has over 100 Modern Awards that set minimum pay rates and conditions for specific industries and occupations. These awards sit above the NES floor and cover things like overtime rates, penalty rates for weekends and public holidays, shift allowances, and industry-specific leave arrangements. The national minimum wage is reviewed and updated every year by the Fair Work Commission. Full-time and part-time employees get 20 days of paid annual leave per year, 10 days of paid personal/carer's leave, and 2 days of compassionate leave per occasion. Long service leave varies by state and territory but generally kicks in after 7 to 10 years of continuous service, typically granting around 8.67 weeks of paid leave.

Superannuation is mandatory in Australia and it's a big deal. Employers must contribute to an employee's super fund on top of their salary. The Superannuation Guarantee rate is 12% of ordinary time earnings from 1 July 2025. Since January 2024, superannuation is also part of the NES, which means employees can take court action under the Fair Work Act to recover unpaid super. This was a significant change that gave workers more teeth when chasing contributions their employer failed to make.

When it comes to ending employment, notice periods under the NES scale with length of service: 1 week for less than 1 year, 2 weeks for 1 to 3 years, 3 weeks for 3 to 5 years, and 4 weeks for 5 or more years. Employees aged 45 or over with at least 2 years of service get an extra week on top. Redundancy pay also scales up: 4 weeks' pay at 1 to 2 years of service, climbing to a maximum of 16 weeks at 9 to 10 years, then dropping to 12 weeks for 10+ years. Small businesses with fewer than 15 employees don't have to pay redundancy under the NES. Unfair dismissal protections apply to permanent employees who've completed the minimum employment period (6 months, or 12 months for small businesses).

Australia draws a clear line between casual and permanent employees, and getting this wrong can be costly. Casual employees don't get paid leave entitlements (annual leave, personal leave, etc.) but receive a casual loading (typically 25%) on top of the base rate to compensate. On parental leave, all eligible employees can take 12 months of unpaid parental leave (with the option to request a further 12 months). The Australian Government's Paid Parental Leave scheme provides up to 24 weeks of government-funded pay at the national minimum wage from 1 July 2025. The government will also pay a superannuation contribution on Parental Leave Pay.