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How to Hire Employees in Australia: A 2026 Guide for Overseas Companies

Insights · By Chen ChunJie · Updated 17 October 2026

To hire in Australia, establish a lawful employing arrangement and meet the rules that apply to the role, location and employee. Options include an Australian entity, a registered branch, an EOR or, where appropriate, direct employment by an overseas business with the necessary registrations. Confirm work rights, award or agreement coverage, pay, employment terms, payroll withholding and superannuation before the start date.

Last reviewed in October 2026 against Fair Work Ombudsman, Fair Work Commission and ATO sources. General information, not legal or tax advice.

Step 1: Decide who will employ the person

An overseas company cannot simply put an Australian on its home-country payroll and ignore Australian rules. The employee is covered by the Fair Work Act wherever the employer is based. You have four realistic options:
Decision flowchart for choosing between hiring directly, an employer of record, visa sponsorship, a contractor or setting up a company in Australia
OptionWhen it fits
Your own Australian companyYou plan a growing team, will sign contracts with Australian customers, or want direct control.
Employer of recordYou have no entity yet and want to hire one or a few people quickly. How NNRoad’s Australia EOR works
Register for PAYG withholding and employ directlyYou accept every employer obligation yourself without a local entity. Rarely the easiest route.
Independent contractorThe work is a defined project and the person genuinely runs their own business.
For a closer comparison of the models, read EOR vs PEO in Australia.

Step 2: Check the candidate's right to work

Australian and New Zealand citizens and permanent residents can work without restriction. Other people need a visa that allows the work, and some visas limit hours, employers or occupations. Check the visa conditions through the government’s VEVO service before the start date and keep a record.
If the person needs a visa sponsored for this job, the employer must be an approved sponsor, usually for the Skills in Demand (subclass 482) visa. From 1 July 2026 the Core Skills income threshold is about A$79,400 a year. Sponsorship is generally tied to the sponsor’s own business.

For each step, see our Australia work visa guide.

NNRoad’s Australia EOR service is for local employees, subject to employment eligibility and role review. Foreign employee hiring is handled through our separate Hire Foreigner in Australia service.

Step 3: Find the award and set the pay

Most Australian employees are covered by one of more than 100 modern awards, which set minimum pay by classification, plus overtime, penalty rates and allowances. The job title does not decide coverage; the duties do. The Fair Work Ombudsman’s award finder is the starting point.
From 1 July 2026 the national minimum wage is A$26.44 an hour, or A$1,004.90 for a 38-hour week, and award rates rose 4.75%. For professional roles the market rate is usually well above the award, but the award can still decide overtime and leave loading.
Decide whether the salary you quote includes super. Offers in Australia are often stated as “A$120,000 plus super” or “A$120,000 including super”, and the difference is about A$12,900 a year.

Step 4: Budget for the costs on top of salary

Cost2026-27
Superannuation12% of qualifying earnings, paid with every pay run
Workers’ compensationCompulsory insurance in every state, priced by industry and wages
Payroll tax4.75% to 6.75% in most states once the employer’s wages pass the state threshold
Leave loadingOften 17.5% on 4 weeks’ annual leave, if the award or contract provides it
For a typical office role this adds roughly 13% to 20%. Our Australia EOR cost guide has three worked examples, and the labour cost calculator gives a quick estimate.

Step 5: Write the contract and give the right statements

A written employment contract should clearly record the role, location, start date, employment type, pay and superannuation, hours, leave and termination terms. Check any applicable award or enterprise agreement for additional documentation requirements. Review confidentiality, intellectual property and any proposed restraints for enforceability and current legal requirements.

On or before the first day, give the employee:
  • The Fair Work Information Statement
  • The Fixed Term Contract Information Statement for fixed-term employees, or the Casual Employment Information Statement for casuals
  • A TFN declaration and a super standard choice form (or request their stapled fund from the ATO)
Fixed-term contracts are limited: generally no longer than two years in total, including any renewal, with exceptions such as earnings above A$190,100. Fair Work

Step 6: Set up payroll, tax and insurance

The employer registers for PAYG withholding, uses Single Touch Payroll software to report every pay run to the ATO, takes out workers’ compensation insurance in the employee’s state, and registers for payroll tax if its wages pass the threshold. Super must reach the employee’s fund within 7 business days of each payday under Payday Super.
Pay must be made at least monthly, and payslips issued within one working day of payday. Employment records are kept for seven years. Fair Work

Step 7: Leave, working hours and public holidays

TopicThe rule
HoursUp to 38 ordinary hours a week plus reasonable additional hours
Annual leave4 weeks a year (pro rata for part-time), paid out if unused when employment ends
Personal/carer’s leave10 days a year, plus 2 days’ compassionate leave per occasion
Family and domestic violence leave10 days’ paid leave a year, for all employees including casuals
Parental leaveUp to 12 months unpaid after 12 months’ service; government Parental Leave Pay for up to 26 weeks
Public holidays8 national days plus state and territory days. 2026 dates
Right to disconnectEmployees may refuse to monitor, read or respond to work-related contact outside working hours unless their refusal is unreasonable

Step 8: If the employee works remotely

A remote employee in Australia is still employed under Australian law. Their state decides the public holidays, long service leave rules, workers’ compensation scheme and payroll tax. Your work health and safety duties also cover a home office, so agree a simple self-check of the set-up and a way to report problems.
Time zones matter: Sydney is UTC+10, or UTC+11 during daylight saving from October to April, and Perth is UTC+8. Read our guide to Australian work culture for managing a team from overseas.

Step 9: Ending the employment

Notice under the National Employment Standards depends on length of service:
Length of serviceMinimum notice
Up to 1 year1 week
1 to 3 years2 weeks
3 to 5 years3 weeks
More than 5 years4 weeks

Add 1 week if the employee is over 45 and has at least 2 years’ service. The award or contract may require more. Fair Work

Assess redundancy pay against service, employer size and any award or agreement. NES redundancy pay generally requires at least 12 months of service and ranges from 4 to 16 weeks; exclusions apply, including many small-business, casual and fixed-term cases. Unfair-dismissal eligibility generally requires 6 months of service, or 12 months with a small business, and award or enterprise-agreement coverage or earnings below the high-income threshold. Other protections may apply without that service. Calculate final pay, including accrued annual leave where payable, and document the lawful reason and process.

Hiring checklist for Australia

  • Decide who the employer is: your entity or an EOR
  • Confirm the candidate's right to work
  • Identify the modern award and classification
  • Set the salary, and whether it includes super
  • Issue the contract with the Fair Work Information Statement
  • Collect the TFN declaration and super choice
  • Set up STP payroll, super, workers' compensation and payroll tax
  • Agree working hours, leave and remote work arrangements

Questions about hiring in Australia

Yes. It can use an employer of record, which employs the person through its own Australian entity, or it can register for PAYG withholding and employ directly while carrying every employer obligation itself.

With an employer of record, once the candidate has accepted and their documents are ready, a start within a few weeks is often possible. Setting up your own company and payroll usually takes several weeks longer.

Yes. The employer pays 12% of qualifying earnings on top of wages, with every pay run, into the employee’s chosen or stapled fund.

There is no statutory probation, but the unfair dismissal minimum employment period works in a similar way: 6 months, or 12 months for a small business. Many contracts set a 3 to 6 month probation for performance review.

Only if the relationship really is a contract for services. Since August 2024 the Fair Work Act looks at the whole relationship in practice, and sham contracting carries penalties. Ongoing work under your direction is employment.

Hiring your first employee in Australia?

If you do not have an Australian company yet, NNRoad can employ your hire through our licensed Australian employing partner.
Get an Australia EOR quote
See Australia EOR pricing