Australia has a number of attractive industries and markets for foreign businesses and investors. Whether in FinTech, mining, agriculture, or renewable energy, there are certainly lucrative opportunities. Consider everything here when hiring employees in Australia. If you’ve already established yourself in one of these markets, or you’re looking into expanding into the Australian market, one thing to be aware of is the host of employment laws in the country. While they can be complex, a simple explanation of what to expect should put you on the path to success.
Australia’s Fair Work Act provides legislation for workplace expectations and regulations. Hiring Employees in Australia
Employment law governing body
The Fair Work Act of 2009 (FW Act) is the general basis for all Australia’s established employment law, as well as work, health and safety, and non-discriminatory regulations. The act creates a council, the Fair Work Commission (FWC), which oversees employment regulations, awards, and enterprise agreements. On an annual basis, the FWC reviews minimum wage requirements for the country. Most recently, the commission deemed the minimum hourly wage in Australia would be AU$18.93. Additionally, the FW Act states that employment contracts need not be in writing to make them official. Oral contracts suffice and hold up as legitimate.
Once employment at an establishment begins, businesses are required to distribute a copy of the National Employment Standards to their new employees. These standards are covered in detail below.
The basics of employment law in Australia
The basics of employment law in Australia are based on the National Employment Standards (NES). This document outlines ten minimum employee entitlements in the workforce which employers must comply with. These minimum requirements are as follows:
– maximum 38-hour work week for full-time employees
– employees who have worked for a company for 12 months or more may request flexible working hours if they meet one of the six categories
– employees are entitled to 12 months of unpaid parental leave and may request an additional 12 months of leave
– full-time employees are entitled to annual, paid leave
– entitled to personal/carer’s leave, compassionate leave, and unpaid family and domestic violence leave
– granted paid leave for jury duty and unpaid leave for voluntary emergency management activities
– paid leave for public holidays
– long service leave
– up to 5 weeks notice of termination and up to 16 weeks redundancy pay
Fair Work Information Statement
If a company does not comply with these standards, monetary damages may be awarded to employees, as well as possible legal repercussions enforced upon the business. Employment Law in Australia
Trade Unions in Australia
Unions in Australia play a crucial role in the employment sector. The organization serves as a representative of the employee during disputes with their employer. Moreover, unions can serve as a bargaining tool during negotiations between employees and employers. Because of their vast involvement in the job market, it is important that businesses recognize and work with trade unions and their employees. Under the FW Act, unions have a variety of rights within the workplace. These rights include, but are not limited to:
– Representation of a member/potential member in legal proceedings
– Entering a workplace to inspect safety standards, given they have proper permits and governmental approval
– Investigating a suspected breach in health or safety protocol
– Require employers to provide them with relevant documentation and/or records
– Entering the workplace to speak with employees
Positive workplace environment, key for hiring employees in Australia
Overall, abiding by employment law creates a safe and healthy work environment, but going above these expectations will pay off even more. Frequently Asked Questions about Labor Laws in Australia
In our experience, these are the common questions and doubtful points of our Clients.
1. What are the labor laws in Australia?
The labor laws in Australia, as outlined in the Fair Work Act 2009, ensure that Australian workers have certain fundamental rights. These include a minimum wage, paid leave periods, compensation when necessary, and safe working conditions. Additionally, it is specified that employees should not exceed 38 working hours per week.
2. What are the working conditions in Australia?
Employers in Australia have a legal obligation to ensure a safe working environment for their employees. They are also required to have workers’ compensation insurance in case of any workplace accidents. The Australian Government oversees this system, and there are also state and territory laws that regulate workers’ compensation.
3. How many hours are in a standard work day in Australia?
Employees in Australia work up to 38 hours a week, which is equivalent to 7.6 hours per day.
4. What is the minimum salary in Australia?
The current national minimum wage in Australia is $23.23 per hour or $882.80 per 38 hour week (before tax). Casual employees who are covered by the National Minimum Wage are also entitled to receive at least a 25% casual loading.
5. How is overtime paid in Australia?
Overtime in Australia is paid according to the Award. Employees are entitled to receive 150% of the minimum hourly rate for the first 2 hours of overtime worked from Monday to Saturday and 200% of the minimum hourly rate for any additional hours. On Sundays, employees are paid 200% of the minimum hourly rate for all hours worked.
6. What are the laws regarding employment termination in Australia?
Employers and employees in Australia are required to adhere to the notice period when terminating employment unless there is serious misconduct involved. In such cases, employees may receive payment in lieu of notice. The notice period varies depending on the length of service: employees with less than 1 year of service are entitled to 1 week’s notice, while those with more than 1 but less than 3 years of service are entitled to 2 weeks’ notice.
7. What are the requirements for terminating an employee in Australia?
To terminate an employee in Australia, employers must provide written notice of the day of termination. The notice period varies based on the length of service and enterprise agreements.
8. What happens when an employee quits in Australia?
When an employee quits in Australia, their final termination pay should be paid within seven days. This payment should include any outstanding salary up to the termination date, accrued but untaken annual leave, and if applicable, long service leave entitlements. Additionally, the employee should receive payment in respect of their notice period if it is being paid in lieu. Entering the Australian market presents businesses with a host of opportunities. Inevitably, growing business may need to consider hiring employees. The Australian labor market and its rules can be complicated to navigate. When starting your move to into markets ‘down under,’ contact Biz Latin Hub for all your commercial needs.
