What Employers and Employees Need to Know About Working in Australia

Australia operates one of the most structured and employee-protective labour frameworks in the world. For anyone working in Australia — or for any business hiring there — understanding the system is not optional. It is the baseline for every compliant, professional employment relationship.

The Framework

Australian employment law is governed primarily by the Fair Work Act 2009, administered by the Fair Work Commission and the Fair Work Ombudsman. The National Employment Standards set out the minimum terms and conditions for all employees in the national workplace relations system, and no award, agreement, or contract can offer anything less. Connecteam Above the NES sit Modern Awards — industry-specific instruments covering pay rates, overtime, and allowances — and Enterprise Agreements, negotiated directly between employers and employees. The national minimum wage currently sits at AUD $24.10perhouror$915.90 per week, revised annually on 1 July by the Fair Work Commission. Connecteam

What Employees Need to Know

Annual Leave – Full-time employees are entitled to four weeks — 20 days — of paid annual leave per year. Shift workers may receive five weeks. Redstone HR Leave accrues progressively from the first day of work and can be carried forward if unused. Part-time employees receive annual leave on a pro-rata basis calculated against their ordinary hours. Casual employees do not receive paid annual leave but receive a casual loading of 25 percent on top of their base rate to compensate. Connecteam

Sick and Carer’s Leave – Full-time employees receive 10 days of paid personal and carer’s leave per year, which accumulates indefinitely and carries forward without expiry. AYP Group This single entitlement covers both personal illness and caring for an immediate family member. Part-time employees receive a pro-rata equivalent. Casual employees are not entitled to paid sick leave but can access unpaid carer’s leave.

Public Holidays – Employees are entitled to 10 public holidays nationally, with additional state and territory-specific holidays layered on top. Redstone HR Employees required to work on a public holiday are generally entitled to penalty rates under their applicable award or agreement.

Parental Leave – Employees with at least 12 months of service are entitled to up to 12 months of unpaid parental leave, with the right to request a further 12 months. AYP Group On top of this, the Australian Government funds a Paid Parental Leave scheme. From 2026, eligible primary carers will be entitled to 26 weeks of government-funded parental leave pay at the national minimum wage — a combined scheme merging the existing 18-week and two-week partner pay entitlements into a single 26-week arrangement. Boundless

Long Service Leave – Employees who remain with the same employer for an extended period accrue long service leave — typically after seven to fifteen years depending on the state — generally amounting to eight to thirteen weeks of additional paid leave. AYP Group

Compassionate and Domestic Violence Leave – Employees are entitled to two days of paid compassionate leave when an immediate family member is seriously ill or passes away. Boundless All employees, including casual employees, can access 10 days of paid domestic and family violence leave per year, accessible in full from the first day of work. Myhr

Notice and Redundancy – Notice periods on termination are based on length of service — up to four weeks, plus an additional week for employees over 45 who have been in the role for at least two years. Fair Work Commission Employees made redundant are entitled to up to 16 weeks of severance pay depending on their tenure. Rippling Redundancy entitlements generally do not apply to employees of small businesses with fewer than 15 staff.

Superannuation – Employers are legally required to contribute at least 11.5 percent of each eligible worker’s pre-tax income into a superannuation fund — the employer super guarantee rate — which invests the money on the employee’s behalf for retirement. Connecteam This is not discretionary. Failure to meet superannuation obligations is a serious legal breach, and as of 1 January 2025, intentional wage underpayments — including super theft — can be punishable by imprisonment. Connecteam

What Employers Need to Know

Hiring in Australia means taking on compliance obligations across multiple layers simultaneously. Beyond wages and superannuation, employers must meet workplace health and safety obligations, issue payslips within one business day of each pay period, maintain accurate records for seven years, and provide every new employee with a Fair Work Information Statement on their first day. Casual employees must also receive a Casual Employment Information Statement.

Misclassifying workers — calling someone a contractor when they are functionally an employee — carries severe penalties. The maximum penalty for a business with more than 15 employees that engages in sham contracting is $495,000. Connecteam

Employers must also verify work rights before engagement. Every individual working in Australia must hold valid work authorisation — as a citizen, permanent resident, or visa holder — and employers who fail to check this face significant liability.

For businesses engaging remote professionals from Sri Lanka, the Philippines, or other markets who are based offshore, Australian labour law does not generally govern that employment relationship directly. Those workers are employed under the laws of their home country. However, the standards applied to how they are managed, compensated, and treated should reflect the same professionalism an Australian employer would expect domestically. Structuring these arrangements correctly — particularly around tax, payroll, and contracts — is where experienced HR and recruitment partners make a material difference.

The Bottom Line

Australia’s labour framework is comprehensive, well-enforced, and regularly updated. For employees, it offers some of the strongest workplace protections in the world. For employers, compliance is non-negotiable — and the cost of getting it wrong, whether through underpayment, misclassification, or procedural failures, is significant. Knowing the numbers before you hire is not a formality. It is the foundation of every sound employment decision made in this market.

Formix supports businesses and professionals across Australia and international markets with recruitment, remote staffing, and workforce solutions. Visit formix.live