Employer of Record in Australia: A Complete Guide for 2026

Introduction

Hiring in Australia means complying with the Fair Work Act, 11 National Employment Standards, state-level payroll tax variations, and one of the most regulated employment systems in the Asia-Pacific region.

The compliance requirements are real. Employers must handle PAYG (Pay As You Go) withholding across five tax brackets, contribute 12% of earnings to superannuation, and pay a 2% Medicare levy. Since August 2024, the Closing Loopholes reforms have also tightened contractor vs. employee classification rules, making misclassification riskier.

An Employer of Record (EOR) in Australia acts as the legal employer for your workforce, handling employment contracts, payroll processing, tax filings with the Australian Taxation Office, superannuation contributions, and compliance with the National Employment Standards. Your company retains day-to-day management of the employee while the EOR takes on the administrative and legal responsibilities.

This guide covers everything you need to know about using an employer of record in Australia: how to hire (with or without a local entity), employment contract types, tax rates, compliance requirements, contractor vs. employee classification, visa and work permit options, payroll setup, leave entitlements, termination rules, and background checks.

Australia at a glance

Population Size: 27.2 Million

Currency: AUS $

Capital City: Canberra

Languages Spoken: English

GDP: 1.76 Trillion

How to hire employees in Australia

There are two main ways of hiring employees in Australia:

• Direct hiring: setting up a subsidiary
• Hiring with an employer of record in Australia

Direct hiring: Setting up a subsidiary

The process of establishing incorporation in Australia usually involves various steps.‍

• The first step is to identify the type of incorporation to be set up. This dictates what documents the Australian Securities and Investment Commission (ASIC) requires.
• The second step is to have a proper internal governance structure in place. This minimizes risks and helps standardize the decision-making process.
• All companies must adhere to the rules outlined in the Corporations Act, although there are exceptions for proprietary companies with a single director and shareholder.
• The third step requires written consent from all the directors or company secretaries (if applicable) involved in registering the company.
• The fourth step involves registering a company name with the Australian Securities and Investment Commission (ASIC). In addition, a formal shareholders' agreement is recommended in the case of multiple stakeholders.
• As the fifth step, for public companies, an auditor must be appointed within one month of incorporation, which must be formally recorded. Every company carrying on business in Australia shall appoint a public officer within 3 months after the company commences to carry on business or derive income in Australia. Additionally, the minute books must be maintained to record the member meeting notes. They must be officially signed and must legally verify the proceedings.
• In the sixth step, corporations are mandated to maintain up-to-date registers (either in digital or physical form) of option holders, debenture holders, shareholders, and the register of charges.
• As a final step, the incorporation must complete all tax-relevant registrations, such as an Australian Business Number (ABN) and a Tax File Number (TFN).

Critical responsibilities like compliance and reporting are integral parts of the process and vary depending on the type of company.

Once you have set up a legal business entity in Australia, you can begin the hiring process.

The hiring process in Australia is quite similar to that in most other countries. Organizations identify the full-time opportunities or positions that need to be filled and advertise the job descriptions on several job platforms, such as Adzuna, CareerOne, CareerJet, Indeed Australia, etc.

Organizations can use in-house recruitment teams or outsourcing agencies to help find suitable candidates for the job. Professional networking platforms like LinkedIn help hiring teams find the best talent in the market.

In addition, businesses use job boards like SEEK (Australia's largest job board, covering all industries), Jora, and Gumtree (strong in trades, hospitality, and entry-level roles) to reach candidates who may not be active on LinkedIn.

Applications that meet the required criteria are shortlisted for interviews after a quick background check.

The shortlisted individuals then undergo a series of interviews with a panel of technical experts, hiring managers, and others to determine whether they are a good fit for the role and the organization’s culture.

Once the individuals are finalized, the employer must verify that any foreign national holds a valid visa with work rights, as required by the Migration Act 1958 and enforced by the Department of Home Affairs. All internationals have the same workplace rights and entitlements as Australian citizens.

Upon successful negotiation and an officially signed offer letter, they are considered to be the company's rightful employees.

Social platforms and popular job boards like SEEK offer many advantages, including access to a wide range of talent.

However, finding the right talent suitable for the opportunity can be quite a challenge. In addition, complying with the law regarding foreign nationals and contractors can be tedious and time-consuming for hiring managers.

Hiring with Skuad’s Australian Employer of Record solutions

Registering a company through ASIC, appointing auditors within one month, maintaining shareholder registers, and completing ABN and TFN registrations all take time and carry ongoing reporting obligations. For companies that want to start hiring in Australia without committing to that process, an EOR offers a faster path.

Skuad acts as the legal employer in Australia, so your company can hire, onboard, and pay employees without entity setup, local legal counsel, or in-house payroll infrastructure.

Here is what Skuad helps with:

• Employment contract generation across 160+ countries, aligned with local labor laws and statutory requirements
• Payroll processing in 70+ currencies with accurate tax withholding and statutory deductions
• Statutory contribution workflows across supported markets, covering applicable social insurance and pension obligations
• Termination and offboarding support aligned with local labor requirements across supported markets
• Work permit and visa support for foreign nationals joining your team
• Background verification covering identity, employment history, and criminal records before onboarding

Book a demo to see how Skuad gets your first Australian hire onboarded in weeks

Customer story: How OpenSolar expanded across three countries with Skuad

OpenSolar is a solar design and sales platform that needed to hire skilled professionals internationally as it scaled. The company required compliant onboarding for 40 full-time employees across the Philippines, Italy, and Portugal, along with localized payroll and benefits administration in each market.

Skuad supported OpenSolar with EOR infrastructure, helping coordinate employment contracts, multi-currency payroll, and statutory compliance across all three countries.

"Skuad has been a key partner in our international expansion. Their seamless onboarding process and compliance expertise have allowed us to focus on our core mission, which is to accelerate the world's transition from fossil fuels to solar energy." Lavinia Davison, Global Head of Talent & Operations, OpenSolar

Read the full case study

Onboarding and agreements

Employee onboarding is a commonly used term in the hiring journey. It refers to the process of integrating a newly hired employee into an organization.

Also known as organizational socialization, employee onboarding helps new joiners understand their job requirements and their new positions.

Employee onboarding can last anywhere from a few weeks to several months.

The ultimate goal is to make the new employee feel confident and competent with their new responsibilities and make them efficient and productive for the company.

The first step of this employee onboarding process is to draft a formal agreement, also known as an employment contract, highlighting all the essential details of the working relationship.

Under Australian labor laws, an employment agreement can be categorized into the following types:

• Full-time agreement: This refers to a type of contract in which the employee agrees to work full-time, or generally 38 hours per week, for the employer. In return, the employee is entitled to paid leave and a written notice of termination.
• Part-time agreement: This type of agreement is used for employees who work less than 38 hours per week and are provided with the same minimum entitlements as full-time employees but on a pro-rata basis.
• Casual employment agreements: A casual employment agreement refers to a working relationship in which there is no firm advance commitment to ongoing work. Individuals are compensated for the hours they work and are not entitled to benefits such as paid sick leave or annual leave.
• Fixed-term agreement: Last but not least, fixed-term agreements refer to contracts that outline a specific duration (the start and end date) to complete a particular project or task. Under a 2023 amendment to Australia's labor legislation, all employers must provide a copy of the Fixed Term Contract Information Statement (FTCIS) to employees hired under this agreement when the employee enters, or as soon as possible after entering, the fixed-term contract.

Once you have drafted an employment contract following these guidelines, you can move on to the other steps of the onboarding process, which can be divided into two phases.

Taxes

Mentioned below is a detailed overview of the various taxes in Australia.

Employer taxation rates in Australia

Employee tax rates in Australia

Compliance

The employment process in Australia seems complicated from the outside. This is due to a highly regulated employment system and a complex requirements model varying across states and territories.

The Fair Work Act is the key policy regulating employment and workplace relations in Australia.

It applies to most Australian employers. As per the Fair Work Act of 2009, a set of 11 minimum entitlements applies to all employees in Australia, with some state public sector exceptions. These entitlements also apply to foreign employees and citizens.

Some of the provisions of employment laws to note before hiring in Australia are as follows:

Although all the employment laws are unified under the Fair Work Act, there are exceptions with some state legislation that governs public sector employees. Examples include Queensland, South Australia, Western Australia, and Tasmania.

A thorough knowledge of all the labor laws and relevant exceptions can save significant time and effort in the expansion process.

Australia's compliance spans the Fair Work Act, National Employment Standards, state-level public sector exceptions in Queensland, South Australia, and Tasmania, plus anti-discrimination laws at both federal and state levels. Getting any of this wrong carries real penalty risk.

Skuad helps with this through local EOR infrastructure, so your team doesn't need to independently track regulatory changes or manage filings across multiple jurisdictions.

Here is what Skuad helps with:

• Compliance monitoring across supported markets, covering evolving employment law requirements
• Employment contract generation across 160+ countries, aligned with applicable labor codes and statutory provisions
• Statutory contribution workflows covering applicable social insurance and pension obligations
• Support with worker classification to help reduce misclassification exposure
• Termination and offboarding support aligned with local notice period and severance requirements

Book a demo to see how Skuad supports Australia's employment compliance

Independent contractors vs. full-time employees

The law protects all categories of workers. However, they are eligible for different entitlements based on the type of employment.

Under Australian law, all employees have a contract of employment with their employer, whether written, verbal, or a mix of both. Since the Closing Loopholes reforms that took effect on 26 August 2024, the test for determining whether a worker is an employee or an independent contractor is based on the real substance, practical reality, and true nature of the working relationship.

This means the actual working arrangement matters more than what the contract says on paper.

Independent contractors (freelancers, consultants, subcontractors, etc.) are self-employed individuals who provide services to a business without being employed by it. They typically negotiate their own fees, control how the work is done, and can work for multiple clients at the same time.

Since contractors are not employees, they are not covered by the National Employment Standards and are not entitled to the national minimum wage, paid leave, notice of termination, or superannuation contributions from the engaging business.

However, contractors do have protections under other laws, including the Independent Contractors Act 2006 (for unfair or harsh contract terms), the Competition and Consumer Act 2010 (for unconscionable conduct), and workplace health and safety legislation.

In addition, the Closing Loopholes reforms introduced a new category called employee-like workers, which applies to certain independent contractors in the gig economy. These workers can now access minimum standards set by the Fair Work Commission, including minimum pay rates and dispute resolution.

Contractors who believe their services contract is harsh or unfair can apply to the Federal Court or the Federal Circuit and Family Court for a review under the Independent Contractors Act 2006.

It is strongly recommended that all employers, employees, and contractors enter into a written contract before starting any working relationship. While Australian law does not mandate written contracts for employment or contractor relationships, having one in writing reduces the risk of disputes over classification, entitlements, and IP ownership.

Skuad helps organizations balance hiring full-time and contractual employees based on the organization’s current needs.

Whether you are hiring full-time employees under a contract of employment or engaging independent contractors under the Independent Contractors Act 2006, each model comes with different compliance obligations and entitlement structures.

Skuad supports both hiring models from a single platform:

EOR for full-time employees

• Acts as the legal employer across 160+ countries, so you can hire without setting up a local entity
• Supports employment contract generation aligned with local labor laws across supported markets
• Facilitates statutory contribution workflows covering applicable social insurance and pension obligations
• Supports payroll processing in 70+ currencies with automated tax withholding and statutory deductions
• Assists with termination and offboarding, including notice periods and severance calculations as required locally

Contractor management

• Helps onboard contractors with locally compliant agreements that reduce misclassification exposure
• Supports invoice generation, approval workflows, and payment processing in local currency
• Helps flag classification risk before it becomes a compliance issue with built-in worker classification checks
• Facilitates multi-currency payouts across 70+ currencies with no manual reconciliation
• Helps manage contractor records, contracts, and payment history from a single dashboard alongside full-time employees

Full-time or contractor, Skuad supports both. See pricing

Fines/penalties for worker misclassification

In the event of worker misclassification in Australia, businesses can face severe penalties, including the following:

• PAYG (Pay As You Go) withholding penalty - for failing to deduct tax from worker payments and send it to the Australian Taxation Office.
• Super guarantee charge, which comprises interest charges, an administration fee, and super guarantee shortfall amounts.
• Additional super guarantee charge of up to 200%.

IP protection

When hiring employees in Australia, it is advisable to be mindful of the various IP regulations of this country.

When it comes to employment relationships, employers automatically own the IP their employees create regarding the business.

Exceptions to this rule are permissible; however, for them to be legally binding, those terms and conditions must be explicitly highlighted in the employment contract.

It is strongly recommended that all employers, employees, and contractors enter into a written contract before starting any working relationship. The said contract must highlight the following parameters,

• Who owns the IP created by the employee/contractor?
• Who has the right to use the IP commercially?
• If and when will the transfer of IP ownership take place?
• Does any party have the right to improve or modify the IP, and how will this impact ownership?
• Confidentiality agreements.
• Non-competition agreements, and
• Obligations to return IP if and when the work ends.

In addition, Australian labor laws are comprised of various regulations related to IP rights. They include,

• The Copyright Act 196
• Trade Marks Act 1995
• Patents Act 1990
• Designs Act 2003
• Designs Regulations 2004, and
• Plant Breeder’s Rights Act 1994, among others.

Types of visas in Australia

Work permits

Australia's work permit involves navigating employer-sponsored visas (Temporary Residence with Work Rights for up to 4 years), Working Holiday Maker visa restrictions by nationality, and the Skill Select program for foreign nationals. Managing this across government departments and documentation requirements adds significant lead time to any international hire.

Skuad supports the work permit process on your behalf, including:

• Supporting work permit applications for foreign employees joining your team
• Helping coordinate visa documentation with relevant local immigration authorities
• Assisting with residence or work permit conversions as required by local immigration law
• Helping track documentation requirements and deadlines across the full permit lifecycle
• Helping keep your team aligned with compliance requirements as permit renewals and regulatory requirements change

Book a demo to see how Skuad supports Australia work permits end-to-end

Payroll

Australia payroll details

Setting up payroll in Australia means accounting for PAYG withholding, 2% Medicare levy, superannuation fund contributions, and payroll tax thresholds that vary by state. Miscalculating any of these carries penalty risk from the Australian Taxation Office.

Skuad helps with payroll processing, so your team doesn't need to build local payroll infrastructure from scratch.

Here is what Skuad helps with:

• Payroll processing in 70+ currencies with accurate tax withholding and statutory deductions
• Statutory contribution workflows across supported markets, covering applicable social insurance and pension obligations
• Automated payslip generation and payment summary documentation
• Support with PAYG withholding calculations and year-end reconciliation across supported markets

Try Skuad's employee cost calculator to estimate your Australia hiring expenses

Benefits and compensation

Medicare is Australia's publicly funded universal health insurance scheme. It covers Australian citizens, permanent residents, and visitors from countries with reciprocal healthcare agreements.

It comprises a wide range of health and hospital services at minimal or no cost. These include,

• Hospital treatment
• Prescription medicines
• Mental health care
• Tests, scans, and other preventative programs.

All taxpayers fund Medicare through a 2% Medicare levy on taxable income.

In addition, Australia's superannuation system provides a retirement savings framework for all workers. Employers must contribute 12% of ordinary time earnings (from 1 July 2025) to the employee's nominated super fund.

Employees can choose their preferred fund via the Superannuation Standard Choice Form. Employees can also make voluntary contributions up to annual caps: $30,000 per year for concessional (before-tax) contributions, and $120,000 per year for non-concessional (after-tax) contributions in 2025-26.

Workers' rights

Apart from these statutory entitlements, there are certain other employee benefits in Australia. These include,

Standard working hours in Australia

A full-time employee works a standard 38 ordinary hours per week. Employers can request reasonable additional hours beyond this, subject to the rules in the employee's award, enterprise agreement, or the Fair Work Act.

Minimum wage

The current minimum wage in Australia is $24.95 per hour or $948.00 per week (before tax).

Overtime pay

Overtime rates in Australia are governed by the applicable award or enterprise agreement. While rates vary by industry and occupation, most awards provide time-and-a-half for the first 2-3 overtime hours and double time after that.

Probation period

The Fair Work Act 2009 does not directly use the term 'probation' but refers to the Minimum Employment Period, during which employees cannot make an unfair dismissal claim. This period is 6 months for businesses with 15 or more employees, and 12 months for small businesses with fewer than 15 employees.

Employee protection and anti-discrimination rights

The Australian Human Rights Commission Act 1986 established the Australian Human Rights Commission, which protects people from workplace discrimination based on gender, race, religion, political opinion, nationality, social origin, and other factors. In addition, the Fair Work Act 2009 covers some of the provisions mentioned earlier.

Disclosure and confidentiality of personal information

The Privacy Act 1988 applies to government agencies and private sector organizations with an annual turnover of over $3 million. Small businesses below this threshold are currently exempt, though certain categories (such as health service providers) are covered regardless of turnover. Note: the Australian Government has announced plans to remove the small business exemption.

Work Health and Safety Act 2011

This Act provides a balanced framework to protect employees’ health, safety, and welfare by minimizing risks through issue resolution, appropriate compliance, and enforcement measures.

Disability Discrimination Act 1992

The provisions of this Act aim to eliminate discrimination against disabled persons in areas such as work, education, sports, existing laws, provisions of goods and services, etc. It promotes the right to equality and advocates acceptance and recognition of disabled people within the community so that they can have the same fundamental rights as other citizens.

Remote and hybrid work

International hiring has long been deemed an effective way to expand your business globally. Unfortunately, very few organizations have been able to achieve success in this journey.

One of the main reasons for this is an organization's lack of remote & hybrid readiness.

By remote readiness, we mean how well your employees and employers can engage in remote work.

When hiring employees in Australia, there are a few factors that determine the effectiveness of this remote readiness model at a company.

They include:

Flexible work arrangements

Ensure your company has work policies that facilitate remote & hybrid work and ensure clarity, relevance, and effectiveness.

Under the National Employment Standards, eligible employees in Australia have a legal right to request flexible working arrangements, including changes to hours, patterns, or location of work. Employers can only refuse on reasonable business grounds and must respond in writing within 21 days.

These guidelines must target some of the key areas of remote readiness, which include performance evaluation, time management, and communication expectations, among others.

Technology and infrastructure

Invest in technology and infrastructure that will ensure business operations are not affected, whether they are carried out remotely or in a traditional office environment.

These include a reliable internet connection, effective collaboration and communication software, and suitable hardware, such as laptops and mobile devices.

Right to disconnect

Since the Closing Loopholes reforms, employees in Australia have a legal right to refuse contact outside their working hours unless doing so is unreasonable. This applies to all businesses from 26 August 2025.

For remote and hybrid teams operating across time zones, this means employers need clear policies on after-hours communication and should avoid scheduling meetings or sending messages outside agreed working hours.

Data security and privacy

Last but not least, ensure that data security and privacy are properly maintained in a remote work setting.

One way to achieve this is by investing in robust security measures that will safeguard your sensitive business data and ensure compliance with all data protection regulations in place.

Salary

The salary of employees in Australia can vary greatly depending on factors such as the nature of the job, location of work, the organization they are working in, their experience level, or even the industry in which the business operates.

Take this as an example. The average salary of an Information Technology Specialist in Australia is between $80,000 and $110,000 annually, according to SEEK and Indeed (as of 2026).

In contrast, the average salary of a Registered Nurse is between $70,000 and $95,000 per year, according to SEEK, depending on specialty and location.

However, one key thing to remember is that, if you are hiring employees without the help of employer of record payroll services in Australia, be mindful of the legal requirements related to this.

These include the official currency that needs to be followed, the pay date, and the current minimum pay in Australia.

For role-specific salary benchmarks, check out this salary insights tool offered by Skuad.

Leave policy

Moving on, here is a detailed outline of the statutory leave entitlements of employees in Australia.

Annual paid leave

Both full-time and part-time Australian employees are entitled to 4 weeks of annual leave, while shift workers get up to 5 weeks based on their work hours.

Medical leave

All employees except casual ones can take up to ten paid leaves during personal illness and care for immediate family members in an emergency. In addition, employees get two days of unpaid carer’s leave in the case of a zero leave balance.

Time off work

All employees can take community service leave for voluntary activities such as jury duty and voluntary emergency management services. The individual is entitled to ‘make-up’ pay during the first 10 days of jury duty. There is no limit on the number of community service leaves to be taken.

Parental leave

Eligible parents can receive up to 24 weeks of Parental Leave Pay at the national minimum wage ($948.10/week from 1 July 2025), increasing to 26 weeks for children born or adopted from 1 July 2026. This is a government-funded payment that both parents can share, and it is separate from any employer-funded parental leave.

An employee can take parental leave when they have given birth to or adopted a child under 16 years of age. All employees who have completed at least 12 months of continuous service are eligible to take 12 months of unpaid parental leave. They can also request an extension of up to 12 additional months. As per the Fair Work Act, the employee must provide at least 10 weeks' written notice to their employer before starting parental leave.

Public holidays in Australia

Australia has 8 national public holidays under the Fair Work Act, with additional holidays varying by state and territory. They include:

• New Year's Day (Public holiday is on 2nd Jan)
• Australia Day
• Canberra Day
• Good Friday
• Easter Monday
• Anzac Day
• Additional public holiday for Anzac Day
• Reconciliation Day
• King's Birthday
• Labour Day
• Christmas Day
• Boxing Day
• Additional public holiday for Christmas Day
• Additional public holiday for Boxing Day

Dates of these holidays and observances may change based on religious calendars.

Background checks

Running background checks is extremely important when hiring employees in Australia.

It not only helps to weed out potential hires who might threaten the workplace environment and other employees but also safeguards your company from potential legal lawsuits and penalties.

You can conduct various types of background checks in Australia. They include:

Criminal record check

It is common for employers in Australia to request a police check before hiring for any particular job role. There are two main ways to do this.

First, the individual or the employee can directly run a Nationally Coordinated Criminal History Check online via the Australian National Character Check (ANCC) form.

Secondly, the employer can directly sign up for the ANCC business portal to track and view individuals' criminal history.

Credit history check

A credit history check is typically done to assess an individual's creditworthiness.

It reveals crucial information related to the number and type of credit accounts, amounts owed, or the amount of available credit used.

Such checks are quite common in Australia and are extremely important, especially for roles that involve handling finance, such as banking, accounting, or loan processing job positions.

Employment history check

An employment history check helps to confirm a job candidate’s employment with all of their previous employers.

This includes their start and end dates, reasons for leaving, and sometimes even their compensation package.

The ultimate goal of an employment history check is to confirm whether the individual has the qualifications and work experience required to excel at their new role.

Termination and offboarding

During the minimum employment period, employees cannot bring an unfair dismissal claim. However, termination must still comply with general protections and anti-discrimination provisions of the Fair Work Act.

The statutory notice period for employees during the probation period is one week.

Upon completing the probation period, if an employee has been offboarded, they need to be provided with a notice period, ranging from one week to five weeks, depending on the tenure of service.

However, an employee can raise a general protection claim if the basis of termination breaches workplace rights, such as discrimination on the grounds of gender, race, religion, etc.

In cases of serious misconduct (such as theft, fraud, assault, or serious safety breaches), the employer may terminate employment immediately without notice.

Conclusion: What gives Skuad’s Australia EOR an edge?

Expansion of business and the establishment of new entities in other countries involve significant risks and challenges. It requires a solid understanding of local laws and how they impact current business processes. 

Companies potentially spend hours comprehending the laws governing various employee types, state/territorial laws, and tax rates and finding a hold on payroll setup.

Over time, organizations realize that it’s not worth the effort since it consumes a lot of business time. Skuad’s expertise and globally distributed teams make it relatively easier to manage all the HR-related functions across geographies within no time while being compliant with all legal guidelines. 

Skuad has built expertise in quickly growing remote team infrastructure and continues to improve its services multifold.‍

‍Join Skuad today to seamlessly expand without capacity restrictions and boost your business to the next level.

FAQs

What is the EOR service in Australia?

In Australia, an Employer of Record (EOR) is a service that legally employs individuals on behalf of another company, managing all HR functions such as payroll, Australia taxes, employment benefits, and compliance with local labor laws. An EOR, like Skuad, allows businesses to operate in Australia without establishing a local entity, facilitating easier global workforce management.

What is the difference between outsourcing and EOR?

Outsourcing involves contracting an external organization to perform certain business functions or services. In contrast, an EOR becomes the legal employer of a company’s employees, handling all employment-related responsibilities. While outsourcing can include any business function, EOR specifically relates to employment and HR services.

How does Australian Immigration verify work experience?

Australian Immigration verifies work experience by requiring applicants to submit detailed documentation, including employer reference letters, pay slips, and employment contracts. These documents must outline the applicant's role, responsibilities, and duration of employment. Immigration authorities may also conduct background checks or contact employers directly to confirm the validity of the information provided.

Do visa officers call employers in Australia?

Yes, visa officers may call Australian employers to verify information included in visa applications, such as the applicant’s employment history and job duties. This is part of the due diligence process to ensure that all provided information is accurate and to prevent fraud.

What are the risks of employee misclassification in Australia?

Employee misclassification in Australia can lead to significant legal and financial risks, including penalties for non-compliance with labor laws, such as incorrect wages, superannuation, and taxes. Misclassification can also result in back payment of entitlements to misclassified workers and potential reputational damage.

How much does it cost to use an EOR in Australia?

The cost of using an EOR in Australia varies depending on the service provider and the scope of services required. Typically, EOR fees are a percentage of the employee's salary, generally ranging from 10% to 20%. These fees cover payroll management, benefits, taxes, and compliance with employment laws. For more insights, try Skuad’s cost calculator now.

What is the difference between employer of record and co-employment?

One of the main differences between an employer of record in Australia and co-employment or a PEO is that a PEO can take over the entire HR functions, but it shares responsibilities with the employer, whereas an EOR acts as the legal employer, holding all the employees' responsibilities and liabilities.

How do I choose an employer of record in Australia?

With so many options at our fingertips, selecting the best employer of record services in Australia can be confusing. Nonetheless, to help you with this process, here are a few factors you must consider.

• Always check the reviews, testimonials, and customer feedback of your shortlisted EOR solutions in Australia.
• Make sure that the Australia EOR service provider provides the best-in-class employee experience, such as paying salaries on time, resolving employee queries quickly, and so on.
• Ensure that your chosen employer of record in Australia has strong protections for your business data and intellectual property.

What are the benefits of an EOR?

Partnering with an EOR in Australia offers many benefits, including on-time payment processing, flexibility to scale quickly, reduced cost of operation, onboarding efficiency, and global accessibility.

Is employer of record legal in Australia?

Yes, employer of record services in Australia are legal. Leveraging the solutions of such service providers is a widely followed and effective way to hire employees while ensuring compliance with local labor laws without setting up a separate business entity.