If you’re looking to expand your global business, hiring employees in Australia makes a lot of sense. It’s an English-speaking country with a diverse, highly educated talent pool across every possible sector. Plus, it has a robust digital infrastructure, and its time zone aligns conveniently with major Asian markets. 

Australia is an ideal location for global companies looking to expand or build teams. In this guide, we’ll walk you through how to hire employees in Australia for international companies, including common hiring methods, key legal and compliance requirements, and onboarding guidelines. Plus, we’ll explain how partnering with a global Employer of Record (EOR) like Payoneer Workforce Management can help streamline the hiring process in Australia. 

Hire employees in Australia: Options for U.S. companies

Companies hiring in Australia have three main options, each with its own benefits and downsides. 

1) Set up a legal entity in Australia

Establishing a local legal entity gives you the ability to hire employees directly and operate long-term in Australia, which is great if you’re planning a permanent in-country presence.

However, it’s an expensive and time-consuming process. Registering a business, setting up local bank accounts, and managing tax and compliance obligations. However, all of this takes time, money, and local expertise. 

2) Hire contractors in Australia

Hiring independent contractors makes sense for short-term or project-based work: it’s flexible and offers fewer upfront obligations than hiring full-time employees.

However, companies must comply with Australia’s strict worker classification laws. Misclassifying an employee as a contractor when they meet the legal definition of an employee is known as “sham contracting.” This can lead to serious consequences, including financial penalties and forced back payment. 

So if you’re considering hiring contractors, you must understand the legal distinctions. 

3) Use an Employer of Record (EOR)

An EOR allows your company to hire employees in Australia without setting up a local entity. 

The EOR acts as the legal employer on paper, assisting with employment contracts, payroll, tax, and compliance support, while your company manages the employee’s day-to-day work. 

EORs are ideal for companies that don’t want to set up as legal entities in Australia. It’s a quick option that lets you tap into Australia’s talent market while reducing risks. 

For more in-depth information, see our complete guide to using an Employer of Record in Australia.  

Where to find employees in Australia

Once you’ve decided how you’ll hire employees in Australia, the next step is finding the right candidates. Here are a few of the most common ways to source talent:

Popular job boards in Australia

Sharing a posting on a local job board remains one of the most reliable ways to hire in Australia. 

Some of the most widely used platforms include:

• Seek
• LinkedIn
• Indeed
• CareerOne
• Jora
• Freelancer.com
• Adzuna

Work with local recruitment agencies

Recruitment agencies can help you hire faster, especially if you’re unfamiliar with the Australian market. Local recruiters understand salary benchmarks and employee expectations. 

That said, recruitment agencies typically charge a fee (often 25% of the candidate’s first-year salary), adding an additional cost to factor into your hiring budget.

Recruit through an EOR’s support

If you’d prefer to avoid managing the recruitment process alone, you may partner with an EOR like Payoneer Workforce Management for additional talent discovery support.

Your team will still lead candidate selection and make the important decisions, while the EOR helps streamline employment contracts, onboarding, benefits and entitlements, and payroll compliance.

Onboarding employees in Australia

The next step of hiring employees in Australia is onboarding. Here are some key steps to add to your checklist:

• Verify the employee’s right to work in Australia: They must be an Australian citizen, permanent resident, or hold a valid work visa.
• Run background checks: This can include reference checks, credential verification, and social media screening. 
• Issue a compliant employment contract: Include details on pay, hours, leave entitlements, termination, and any applicable awards or enterprise agreements.
• Collect tax and superannuation forms: Employees will need to complete a tax declaration and nominate a super fund.
• Register for payroll and superannuation contributions: You will need to make ongoing contributions to meet Fair Work and ATO requirements.
• Prepare IT and workplace resources: Organise software access and email setup before their first day.
• Schedule an orientation: Introduce the employee to your company’s mission, policies, and team.

Key employment laws and requirements in Australia

If you want to hire employees in Australia, you must understand and comply with the country’s strict (and sometimes very intricate) employment regulations. Here is a top-level look at what you’ll need to know. 

Employment contracts

In Australia, while not legally required, it is strongly recommended that all employees be given a written employment contract that clearly outlines the terms and conditions of their role.

This contract must comply with the Fair Work Act 2009. 

Key details to cover include:

• Job title and duties
• Start date and type of employment (full-time, part-time, or casual)
• Hours of work and location
• Salary, payment frequency, and any other benefits
• Leave entitlements
• Probation period
• Notice periods and termination terms

Employee Benefits

When you’re planning to hire employees in Australia, it’s important to understand several statutory benefits outlined in the country’s National Employment Standards (NES), which apply to most employees.

• Vacation time: 20 days (4 weeks) of paid vacation per year for full-time employees
• Sick leave: 10 days of paid personal/carer’s leave annually
• Parental leave: Eligible employees in Australia can take up to 52 weeks (12 months) of unpaid parental leave. For births or adoptions after July 2025, government-funded paid parental leave includes up to 22 weeks for the primary carer (typically the mother) and 2 weeks for the secondary carer (typically the father), subject to eligibility under Australian regulations.
• Public holidays: Paid leave for 10 to 12 public holidays per year, depending on the state or territory
• Superannuation (pension): Employers must contribute 12% of an employee’s earnings into a superannuation fund.
• Other leave: Includes compassionate leave, community service leave, and long service leave

Working hours and holidays

Standard full-time working hours in Australia are 7.6 hours per day or 38 hours per week, plus reasonable additional hours if required. 

Employees are also entitled to:

• Public holidays: 10 to 12 paid days per year, depending on the state
• Paid vacation leave: A minimum of 4 weeks per year 

To learn more, check out our guide on leave policy in Australia.  

Tax obligations

Employers in Australia have several mandatory tax and compliance responsibilities, including:

• Income tax withholding: Employers must withhold Pay As You Go (PAYG) income tax from employee wages.
• Superannuation: Employers must make super contributions (12% as of July 2025) on top of wages.
• Payroll tax: Employers pay a state-based payroll tax if their company’s total wages exceed a particular threshold.
• Fringe benefits tax: This is paid by employers on non-cash benefits provided to employees (e.g., company cars, health insurance, or housing).

Termination and severance

Termination must be handled in line with the Fair Work Act, and the process must be fair, lawful, and well-documented.

Key things for companies hiring employees in Australia to know include:

• Notice period: Notice periods typically range from 1 to 4 weeks, depending on the employee’s length of service.
• Additional notice: Employees over the age of 45 with at least 2 years of service receive an additional week of notice. 
• Paid notice: Employers in Australia can provide payment instead of notice.
• Severance pay: Also known as redundancy pay, it ranges from 4 weeks’ pay (for 1 year of service) to a maximum of 16 weeks’ pay (for 9+ years of service).

Redundancy pay is not required if the business has fewer than 15 employees or the employee was hired on a fixed-term contract.

Payoneer Workforce Management helps hire employees in Australia

As you can see, hiring employees in Australia comes with a range of legal and administrative responsibilities. From drafting compliant employment contracts and managing superannuation to handling payroll tax and termination requirements, it can be a lot to manage.

For American companies hiring in Australia, navigating this process independently can be costly, time-consuming, and carry significant risk.

Payoneer Workforce Management can act as your local in-country entity, helping you hire both independent contractors and full-time employees in 160+ countries, including Australia. Our unified platform makes it easy to:

• Onboard employees quickly and compliantly
• Run global payroll in a few clicks
• Understand local employment laws
• Manage taxes, benefits, timesheets, and more

From quick onboarding to multi-currency payroll and compliance support, Payoneer Workforce Management has everything you need to hire employees in Australia and scale a global workforce with confidence.

Ready to simplify the hiring process in Australia? Book a demo today.

FAQs

1) What is the cost of hiring an employee in Australia?

Hiring an employee in Australia through an Employer of Record (EOR) is often a cost-effective option for international companies. Compared to the high costs of setting up a local legal entity (or paying recruitment agency fees that can reach up to 25% of a candidate’s annual salary), working with an EOR significantly reduces upfront investment.

2) What are the options for American companies hiring in Australia?

American companies hiring in Australia have three main options.

1. Set up a local legal entity: This allows you to hire directly but requires local compliance expertise and a considerable cash investment. It’s best for companies planning a long-term presence.
2. Hire independent contractors: This is a flexible option for short-term work. However, you must ensure you correctly classify contractors. Employee misclassification can lead to severe penalties under Australia’s strict labor laws.
3. Use an Employer of Record (EOR): An EOR like Payoneer Workforce Management hires employees on your behalf, handling employment contracts, payroll, taxes, and compliance.

For most American companies hiring in Australia, an EOR is a quick and compliant way, ideal to build an international team. 

3) What is the hiring process in Australia?

The hiring process in Australia typically includes the following steps:

1. Set up a legal entity in Australia, or partner with an EOR to help you comply with local labor laws. 
2. Register for local tax and payroll obligations, or partner with an EOR.
3. Define the role and advertise the position on local Australian job boards, work with a recruiter, or use your EOR for recruitment support.
4. Screen candidates by reviewing resumes, conducting interviews, and checking references.
5. Make an offer that clearly states salary, benefits, and start date.
6. Create an employment contract, including terms like work hours, leave entitlements, and notice periods in line with Fair Work Act requirements.
7. Onboard the employee. Register them for payroll, superannuation, and tax, and provide tools, training, and orientation. 

Working with an EOR can help you hire employees in Australia.