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Employment Laws

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Australia

Employment Laws in Australia

Updated on:
16 Jan, 2024
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Understanding and complying with the Australian employment law and particularly the Fair Work Act is essential when hiring tech talent in Australia. Seen as an excellent location for global organizations to hire tech talent, Australia offers a lot to global organizations in terms of its vast pool of talent, a strong tech industry and favorable government policies. However, hiring tech workers and building a remote team requires a comprehensive understanding of Australian employment laws which include the federal laws and health and safety requirements.
This article delves into the key aspects of employment and labor laws in Australia that tech firms and remote workers should be aware of.

The Fair Work Act in Australia

The Fair Work Act 2009 is the principal legal source of employment in Australia providing the cornerstone of the national workplace relations system. It governs the employment contracts, terms and conditions and makes provision for the establishment of an employment relationship between an employer and employee in the country. The Fair Work Act 2009 also governs union regulations and makes provisions for the protection of employees (both private sector employees and public workers) against discriminatory practices under the federal anti-discrimination laws.

The primary source of employment terms and conditions is contained in the employment contract which the Fair Work Act 2009 provides the minimum conditions an employee must be subjected to, which is included in the contract.

Other legal frameworks that govern employment in Australia include the Health and Safety Act, the Australian Human Rights Commission, workplace relations policies, and so much more.

The Fair Work Ombudsman (FWO): This independent agency investigates breaches of workplace relations rights. It also mandates organizations to comply with workplace laws before the courts and provides informative support to employees as well as employers regarding their employment rights.

The Fair Work Commission (FWC): This independent workplace relations tribunal provides the base for the national minimum wage. It is also responsible for effecting changes or settling workplace disputes.

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Employment Contracts in Australia

Employment terms and conditions are primarily documented in the employment contract. As the primary source of employment terms and conditions, it is not binding if the employee does not agree to the terms of the agreement. As a result, while an employment contract in Australia can be in writing or verbal, a written employment contract is mostly preferred in Australia.

For an employment contract to be legally binding, it must fulfill the following conditions

  • Mutual agreements of the employment terms by both parties
  • Both parties - the employer and employee must have the contract legally binding.
  • The terms must be clearly stated and understood by both parties.
  • There shall be no illegal factors included in the terms of the agreement.

Probation Period

An employer usually decides on the length of the probation period. It often ranges from 3 to 6 months, beginning from when the employee starts employment.

Minimum Employment Terms and Conditions

The National Employment Standards (NES) is a set of 11 minimum employment entitlements provided to all employees in Australia. It is responsible for stipulating the minimum employment terms and conditions in Australia. The minimum conditions established by the NES include the maximum working hours in Australia, flexible working arrangements requests, mandatory leaves, and so on.

Maximum Weekly Hours

The NES sets the maximum weekly work hours to 38 hours for full-time employees. This standard allows for additional hours, but they must be reasonable.

Leave Provisions

Australian employment laws stipulate several leave provisions including annual leave, personal/carer's leave, community service leave, long service leave, and parental leave. For tech companies hiring in Australia, understanding these mandatory leave provisions is critical to ensure compliance and avoid common legal troubles.

Especially for remote employees, knowing that their right to these leaves is protected can offer a sense of job security, even if they're working from abroad.

Notice of Termination and Redundancy Pay

The NES ensures protection for employees in the event of termination or redundancy. It mandates employers to provide a notice period before ending an employment contract and in some cases, redundancy pay is also required. This helps to mitigate the impact of sudden job loss.

Fair Work Information Statement

Employers in Australia are required to provide every new employee with the Fair Work Information Statement. It outlines the employees' rights, obligations, and entitlements under the NES.

It's vital for both the employer and the employee to have a clear understanding of these provisions to prevent potential misunderstandings that could lead to HR compliance mistakes.

Important Takeaway

The NES forms the cornerstone of employment relationships in Australia. For tech talents working remotely, these standards offer a secure framework that safeguards their rights and prevents them from being misclassified as independent contractors.

Mandatory Leaves in Australia

Understanding the leave entitlements in Australia is crucial for any company planning to hire in the country, including tech companies hiring remote or distributed teams. These mandatory leaves not only protect the employees' rights but also contribute towards building a balanced and productive work environment. They also form a part of the National Employment Standards (NES), which provide minimum employment terms and conditions in Australia.

Annual Leave

Employees in Australia, including full-time and part-time workers, receive up to four weeks of paid annual leave for every year of service. This leave accrues gradually throughout the year and any unused annual leave rolls over to the next year. Tech firms hiring tech talent in Australia should factor in these leaves while planning projects and deliverables.

Sickness Leave

Employees receive up to 10 days of sick leave per year, according to the NES. Employees typically take sick leave in the event of being unfit for work due to illness or injury. Also, the Fair Work Act makes stipulations that prevent employees from getting dismissed due to being temporarily absent from work.

Parental Leave

New parents who recently gave birth or adopted a child are entitled to unpaid parental leave in Australia for up to 12 months. This unpaid leave can be extended to 24 months with the employer's consent. However, some situations enable employees to receive a form of compensation during their leave. One such condition is when the employer or organization has their own in-house paid leave scheme. Typically, this paid leave scheme has a shorter duration unlike the NES mandated leave provision.

Long Service Leave

Long-service leave rewards employees for their long-term service to the company. The entitlements for long service leave can vary across different states and territories in Australia but it generally accrues after an employee has served a particular company for a specific period, usually 10 years.

Domestic Violence Leave

Employees experiencing domestic violence at home or providing support to a family member experiencing domestic violence are entitled to 5 days of unpaid domestic violence leave in a calendar year.

Public Holidays

Public holidays in Australia are another form of leave. Employees are entitled to take a day off on a public holiday and, if they work, they are entitled to be paid at a higher rate.

It's essential for tech companies to not just understand but respect these leave entitlements when managing their remote teams. It's not only a legal requirement but it's also a key factor in ensuring job satisfaction and work-life balance. Importantly, adherence to these laws can save companies from potential legal troubles and contribute to their reputation as fair and ethical employers.

Additionally, the fact that Australia is among the countries that offer free healthcare can offer added reassurance for remote tech talents considering opportunities in the country, further enhancing the attractiveness of working in or with an Australian company. This, coupled with a robust understanding of the mandatory leaves, can help in creating a balanced and supportive workplace culture, crucial for attracting and retaining the best tech talent.

Termination of Employment

In Australia, termination of employment is a significant part of the employment relationship that is closely regulated by the Fair Work Act 2009. Understanding the rules and obligations surrounding termination is vital for both tech companies and remote workers. It ensures a fair process is followed, safeguarding the interests of both parties.

Notice of Termination

Employers are obliged to provide between one and four weeks of the minimum statutory notice period. However, the provision of notice before termination does not apply to casual employees, employees with a fixed-term employment contract, independent contractors and employees whose termination is as a result of serious misconduct and breach of contract.

In terminating the employment contract of employees over 45 years of age and who have worked in the organization for at least two years, an extra week of notice is provided.

Redundancy Pay

If the termination is due to redundancy, employers may be required to provide redundancy pay. This is an entitlement under the National Employment Standards that aims to cushion the impact of job loss. The amount of redundancy pay depends on the duration of continuous service the employee has provided to the employer.

Tech companies should plan ahead for such eventualities to avoid unexpected financial burdens and legal complications. Missteps in these areas can lead to common legal troubles for global businesses.

Unfair Dismissal

In Australia, employees are protected against unfair dismissal. If an employee believes their dismissal was harsh, unjust, or unreasonable, they may lodge an unfair dismissal claim with the Fair Work Commission.

For tech companies, understanding the grounds for unfair dismissal can help ensure they conduct terminations legally and ethically, thereby preventing HR compliance mistakes.

Constructive Dismissal

It's also worth noting that constructive dismissal, where an employee feels compelled to resign due to the employer's conduct, is also considered a form of termination. If an employer has made a remote work situation unbearable for a tech worker, the employee might have grounds for a constructive dismissal claim.

Understanding employment laws related to termination is essential in avoiding such scenarios and ensuring a healthy, productive remote work environment.

Anti-discrimination Laws

The different anti-discrimination legislation in Australia makes it illegal to discriminate against anyone based on characteristics such as race, sexual orientation, disability, or even age. The anti-discrimination laws require the aggrieved persons to show proof of discriminatory practices by the alleged offender before any action is taken. The acts that govern the Federal anti-discrimination laws in Australia include the following

  • Age Discrimination Act 2004 (Cth)
  • Australian Human Rights Commission Act 1986 (Cth).
  • Racial Discrimination Act 1975 (Cth)
  • Sex Discrimination Act 1984 (Cth)
  • Disability Discrimination Act 1992 (Cth)

These acts govern and protect any worker in Australia against age, race, sex, disability, and other forms of prejudice.

Harassment

the Anti-Discrimination Act 1977 governs and protects anyone against harassment of any kind in Australia. According to this act, actions that constitute sexual harassment include unwelcome sexual advances, requests for sexual favors, and the use of terms or conducts that classify as sexual.

Data Privacy

Various federal, state and local laws make provisions that ensure employers respect the privacy of their employees.

While employers can monitor how employees use their work devices, some states require employers to provide notices and consent before employers monitor their online work activities. Also, restrictions on social media and specific websites during work hours are a common practice in workplaces in Australia. However, employers should implement a decent and standard social media and internet policy which will govern the monitoring, restriction and access regarding an employee's internet usage.

Ensure Compliance in Australia with Skuad

Knowledge of employment laws not only aids in creating a fair and productive workplace but also contributes significantly to avoiding potential missteps and related penalties.

As a comprehensive Employer of Record platform, Skuad enables organizations to hire and onboard contractors and employees compliantly across more than 160 countries, including Canada. With Skuad, legal risks and fines become a worry of the past, as the platform ensures your organization's complete adherence to country-specific laws and regulations.

Book a demo with Skuad to know more.

FAQs

What are the main employment laws in Australia?

Asides from the federal Fair Work Act 2009, other employment laws include,

  • the State and Federal Anti-Discrimination Laws
  • Work Health and Safety Act 2011
  • Disability Discrimination Act 1992

What is the Australian workplace policy?

The Australian workplace policy mandates employers in Australia to ensure that the workplace is safe and complies with the minimum health and safety standards. It also ensures employees have access to workers' compensation insurance when a workplace accident occurs.

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EOR in 
Australia
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349
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EOR in 
Australia
Monthly
$
399
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(billed annually)
Annually
Pay monthly at a discounted rate with a 12-month commitment
$
349
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Employ contractors and employees in 160+ countries

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