Learn about labor and talent compliance norms in Australia with this quick guide.
A highly developed, high-income country, Australia, has the world's 13th biggest economy. It ranks at the 8th position in human development and 10th in the world per capita income. An abundance of natural resources and robust international trade forms the backbone of the Australian economy.
Canberra, Melbourne, Sydney
Digital Transformation Skills, IT Industry, Technical Specialists
Employment and workplace relations in Australia are governed by the Fair Work Act of 2009. The Australian labor law framework is derived from:
No statutory requirements are mentioned in the language of the contract.
The usual probationary period followed in Australia is from one to six months.
Salaries are one way companies recognize and reward their employees for working hard. Salaries may include both monetary benefits like pay rates, bonuses or profit sharing agreements as well as non-monetary rewards such as health care plans with no deductibles that come straight out of your paycheck every month.
The total package includes the following:
The major statutory leaves provided to employees residing in India are covered as below:
Up to 4 weeks
All full-time and part-time workers - dependent term of employment
Varies based on state
Sick and carer’s leave 10 days
More leave can be availed on an unpaid basis
12 months of unpaid leave
All full-time employees with a minimum of twelve months of employment tenure with the same employer are entitled to maternity leaves.
5 days
18 weeks
2 weeks of paid leave at minimum wage
5 days
The tax brackets are an important part of any employee’s understanding about how much their employer can deduction from salary.
Employees in Australia are covered by Medicare, which is a universal healthcare system. It's not necessary for employers to offer health insurance since most people have this coverage already through their employment opportunities
Private health insurance is a good option for those who want more flexibility when it comes to choosing hospitals and doctors. However, many employees still choose buy private medical coverage even though they can get most services from Medicare or the public system without extra cost.
The table below breaks down the cost of private health insurance plans:
Employers can offer private health insurance for your employees.
This is because of the following reasons:
The contribution to a superannuation fund by an employer is the only way that employees can retire with dignity. Employees must wait until they are at least 65 years old, or have retired before being able take out money from their own retirement account - which could contain up 10% of salary every payment period!
This mandatory minimum is set to rise in the upcoming years. Check the table below:
Period
Contribution to Super %
1 July 2021 – 30 June 2022
10.00%
1 July 2022 – 30 June 2023
10.50%
1 July 2023 – 30 June 2024
11.00%
1 July 2024 – 30 June 2025
11.50%
1 July 2025 – 30 June 2026
12.00%
1 July 2026 – 30 June 2027
12.00%
1 July 2027 – 30 June 2028 and onwards
12.00%
The Australian government guarantees that every citizen has the right to choose their
Super Fund provider.
Employers can give information on:
However, they cannot directly make these recommendations unless the employer has a license from ASIC.
Common fringe benefits include:
Property (including goods, real property such as land and buildings, and shares or bonds) - Senior management benefits
Subsidized training or educatio
Travel and Fuel costs
Parking
Non-monetary benefits include the provision of mobile phones, company vehicles
Medical, dental, and vision insurance
Childcare, including off-site and on-site options
The following work-related items are necessary for compliance with Health and Safety requirements - dependent on industry.
In a long-term incentive, the largest component is always going to be incentives. Over time they’ve increased by 4% while short term ones have decreased 5%.
The long-term benefits of this position are so attractive that executives often don't want to take the money and run. So in order for them not get rich too quick, their compensation comes with stocks instead!
The idea behind equity compensation is that it will help align the executive’s pay with company value. If you're considering this, there must be willing owners who are ready to share their ownership
An employee can resign or be terminated by the employer. The major grounds for termination include:
Notice period varies depending on the length of employment. During the probationary period, it is from 7 - 30 days, and for permanent employees, it ranges from one to twelve weeks.
An employee's job might be affected by redundancy and the redundancy/severance pay for different employment terms in Australia are as follows:
*Note, there is a decrease in redundancy pay from 16 weeks to 12 weeks for employees with above 10 years of continuous employment service.
