Businesses from coast to coast seek out Australian talent to fill difficult roles, address shortages in talent, or add high-caliber workers to their teams. Workers in this country are exceptional in that they are knowledgeable, innovative, and often a joy to work with. Though the country doesn’t have the lowest minimum wage in the world, Aussie talent makes up for that in many cases.

If you’ve decided that it’s time to bring on some Australian workers, do it with your eyes fully open. The labor laws in the country aren’t nearly as carefree and easy-going as the average Australian. There are several mandatory benefits you’ll need to include in the benefits package for your Aussie workers to avoid legal issues and a difficult recruiting process.

We’ll cover both mandatory employee benefits, supplementary employee benefits, and the labor laws in Australia. In addition to that, we’ll share practical advice you can use while creating a benefit plan for these workers.

The Labor Laws in Australia

There are several standards and pieces of legislation that govern the worker/employer relationship in Australia. They include:

In the above sources, you’ll find guidelines and laws regarding minimum employee entitlements, flexible working arrangements, and fairness at work. We will reference provisions from these laws throughout this article, as well as other scholarly sources that break down the laws.

Note: The laws apply even when an Australian is working outside the country.

Mandatory Employee Benefits in Australia

Be sure to include the mandatory employee benefits below in your benefit plans for Aussie employees. Otherwise, you could be on the hook for penalties, fines, and a host of other problems. On top of that, Aussies are aware of the benefits they’re entitled to; they’ll be looking for these benefits while weighing their employment options. Read on for more information. 

Minimum Wage

The Fair Work Ombudsman, led by the Australian government, states that the general minimum wage for Aussie workers is $24.10 AUD per hour or $915.90 AUD per week. In American dollars, this equates to $14.92 an hour and $567.13 a month.

However, special awards and agreements may apply to workers who are new to a given industry. Use this tool to determine if any apply to one or more of your employees.

Minimum wages are subject to change at any time but changes typically take effect on the first pay period or after the first of July, according to the Australian government.

Working Hours and Overtime

As for hours of work, the Australian government website states that employees can work up to 38 hours per week unless they are asked to work overtime. Then, the weekly hour maximum will apply. Employees don’t have to work overtime if they believe the hours are unreasonable.

Leave Entitlements

Australian labor law is heavy on leave entitlements. Read on to learn more.

Leave TypeDetails
Parental LeaveThere’s unpaid parental leave for employees that fall under one of the following categories:
  • They give birth to one or more children.
  • Their partner is giving birth.
  • They are adopting a child that hasn’t yet reached the age of 16.

The duration of the leave is 12 months minimum, but the worker can request up to a year of extra leave.

Though the primary leave is generally unpaid, it will be paid in certain circumstances, like under an award, a company policy or enterprise agreement, or the Paid Parental Leave Scheme.

Sick LeaveEmployees can take time off when they’re sick, there’s a family emergency, or they need to care for someone else. Both full-time and part-time employees have this benefit.

Full-time employees get 10 days of sick leave per year, and part-time employees accrue sick leave according to their hours of work.
Annual Leave / Holiday PayFor every 12 months of work, full-time Australian employees are entitled to 4 weeks of annual leave. If the employee only works on an as-needed basis, they don’t get annual leave.

Leave time begins to accumulate from the first day of employment, and the worker can take leave immediately after accumulating the time.
Community Service LeaveCommunity service leave should be made available to all employees so they can take care of jury duty and voluntary emergency management activities.

There’s no arbitrary limit for how long this leave can be. And it’s unpaid unless the leave is for jury duty.
Domestic Violence LeaveEmployees get 10 days of family and domestic violence leave every year. It doesn’t accumulate from year to year and is available from their very first workday.
Religious and Cultural HolidaysWhen an employee wants to take time off for religious or cultural reasons, the government encourages businesses to allow it. Prohibiting an employee from doing so can be judged as discrimination.

Retirement/Pension Benefit

Just like the bulk of other developed countries, employers are required to comply with retirement/pension benefits as specified by the government.

In Australia, employers have to contribute 11.5% of each employee’s salary to the superannuation fund. When the employee retires, they’ll receive a series of payments to cover the necessities.

Australia doesn’t have an official retirement age, but employees have to be at least 67 years old to be eligible.

Tax Withholding

Employers are required to withhold taxes for their employees on a regular basis, after a worker is terminated or leaves, and more. 

Read this resource on PAYG (pay as you go) withholding for employers.

Redundancy Pay

Employers have to provide redundancy pay if they have to let an employee go because (1) their role is redundant or (2) the business has fallen into insolvency or bankruptcy.

In cases like these (and more), they will receive a certain number of weeks of pay, which are shown in the table below.

Length of ServiceRedundancy Pay Entitlement
Over a year but under 2 years4 weeks
Over 2 years but under 3 years6 weeks
Over 3 years but under 4 years7 weeks
Over 4 years but under 5 years8 weeks
Over 5 years but under 6 years10 weeks
Over 6 years but under 7 years11 weeks
Over 7 years but under 8 years13 weeks
Over 8 years but under 9 years14 weeks
Over 9 years but under 10 years16 weeks
At least 10 years12 weeks

This topic is covered in detail on the Australian government website.

Allowances

If your employees have to travel, buy work-related items, or wear a uniform for work, you have to either pay for these things outright or give the employee the money to buy them. 

Supplementary Employee Benefits in Australia


Along with the mandatory benefits outlined above, consider offering supplementary benefits to employees. They are not mandatory but could make it easier to attract good candidates and quickly fill positions. Here are a few ideas, but feel free to brainstorm more based on the job positions you want to fill, your budget, the company’s culture, and more:

  • More paid time off than Australian labor laws require.
  • Support for professional development, like student loan reimbursement or access to relevant workshops.
  • Childcare stipend or on-site daycare.
  • Exclusive perks or employee discounts.
  • Mental health days to allow employees to decompress.
  • Gym and yoga memberships for bodily wellness.
  • Free or low-cost meals.
  • Employee recognition awards and initiatives.

How to Build a Good Benefit Plan for Australian Employees

Building a good benefit plan is all about planning things out and reaching out for help as needed throughout the process. The tips below will prove to be helpful:

  • Read up on Australia’s labor laws. The best way to start is by getting familiar with the laws and regulations in the country. We’re talking about the actual laws – not resources or blogs about them. You need a good, solid understanding of the Australian employment law to build a solid benefit plan for your Aussie workers. If you’re unsure about anything related to the country’s laws, feel free to reach out to a lawyer with international experience (or an Australian business or labor lawyer).
  • Map out mandatory benefits. Get your mandatory benefits all in a row. Map them out and write them up in your employee benefit package. Doing so first will ensure you don’t leave anything important out and inadvertently open yourself up to legal problems. A legal professional could also be helpful during this step.
  • Add your supplemental benefits. If you plan on including supplementary benefits, this is the time to choose and note them in the benefit plan. Ensure that the benefits you choose are relevant to your employee’s lives and truly bring value to them. Otherwise, they’ll be pointless.
  • Finalize the benefit plan. During this step, you’ll compile all the benefits into a central document that goes into great detail. But be sure that the document is easy for laypeople to understand. You may include information surrounding benefit eligibility, terms, and processes involved in benefit implementation. Before moving to the next step, we recommend allowing an HR professional or attorney to review the document. They can ensure that it’s wholly compliant with the laws in place.
  • Distribute the benefit plan. Send or distribute the benefit plan to candidates when needed – during or after interviews, during new-hire orientation, etc. You may want to share a shortened version of it with shortlisted candidates as well.
  • Continually update the benefits package. Review the benefit plan on a schedule. Laws and regulations are changing all the time, and businesses should stay on top of them to keep their benefits plans compliant. On top of that, your business policies may change in a way that impacts employee benefits – you’ll change the plan in these cases to maintain relevancy.

So, there you have it – information on labor laws, benefit package creation tips, and supplementary and mandatory employee benefits in Australia. We hope you found all the information you were looking for, and we wish you the best as you expand into this great country.