Hire in Australia

In Australia, employers are prohibited from entering into fixed-term contracts with employees in circumstances where:

• The fixed-term contract has a term of more than two years.
• The fixed-term contract contains an option to renew for another term, such that the employee may be employed for an overall term that is more than 2 years. Or
• The fixed-term contract provides for an option or right to renew or extend the contract more than once.

It is also unlawful in some cases for parties to enter into a series of consecutive fixed-term contracts, including where the combined terms exceed two years, where an employee will be performing the same, or substantially similar work, under the contracts or there is a substantial continuity of the employment relationship between the contracts. Employers that contravene these provisions may be liable for civil penalties.

There are limited exceptions to the fixed-term contract prohibition including where an employee is engaged:

• To perform only a distinct and identifiable task involving specialized skills.
• Under a contract in relation to a training arrangement.
• Under a contract to undertake essential work during a peak demand period.
• To undertake work during emergency circumstances or during the temporary absence of another employee.
• And in the year the contract is entered into, the amount of the employee’s earnings under their contract exceeds the high-income threshold for that year (which is currently AUD 167,500).

Final pay is the amount an employer owes an employee at the end of an employment agreement. Employment awards, registered agreements or contracts should specify when final pay must be paid. It is best practice for employers to pay their employees within seven days of their employment ending.

Employees are entitled to any outstanding wages for hours they have worked and any accumulated annual leave. If applicable, employees should also receive accrued or prorated long service leave, payment in lieu of notice and redundancy pay.

The Department of Human Services sometimes requires employers to submit an Employment Separation Certificate when an employee stops working for them. All payments must be outlined in this certificate.

Employers can dismiss employees for reasons related to unsatisfactory performance or misconduct. To terminate an employee, employers must offer a written notice of the last employment day or payment in lieu of notice. The notice can be delivered in person or sent to the employee’s last known address. Serious misconduct allows for dismissal without notice. However, employers will still have to pay all outstanding entitlements.

Employees can apply for unfair dismissal if they believe they have been dismissed in a harsh, unjust or unreasonable manner. An employee is eligible to file an unfair dismissal application if he or she has worked for the employer for at least six months or for at least 12 months if the employer is a small business. Employers must submit the application to the Fair Work Commission within 21 days from the day of dismissal.

A trade union must have at least 50 members who are employees and organized specifically for the purpose of supporting or advancing claims related to a proposed registered agreement. The Australian Council of Trade Unions (ACTU) is the largest body representing workers in Australia, representing 46 affiliated unions. However, membership of trade unions in Australia has steadily declined over the past four decades to only 15% of the workforce today.

Redundancy occurs if employers no longer need an employee’s job to be done by anyone or if the organization becomes insolvent or bankrupt. The amount of redundancy or severance pay an employee is entitled to depends on the employee’s period of continuous service with the employer. This excludes unpaid leave.

Redundancy pay is not payable in some circumstances, such as if the employer is a small business or the employee’s period of continuous service is less than 12 months. Redundancy pay is not offered in fixed-term employment.

*The severance entitlement amount is reduced after 10 years of continuous service because the Australia government assumes employees are also entitled to long service pay leave at this point.

• According to the NES, full-time and part-time employees are entitled to take four weeks of paid annual leave. This is also known as holiday pay. Shift workers may be eligible for one additional week.
• Employers are allowed to offer more annual leave than the minimum set by the NES.
• Annual leave accumulates in hours, starting from the first day of employment. This includes the probation period. Unused annual leave must be rolled over from year to year. It can be paid out upon termination of the employment agreement.
• All employees in Australia are required to use GoGlobal’s leave tracking system. This enables us to determine leave accrued and the latest leave balance timely and accurately, ensuring employees are updated on their leave entitlements.

• Sick, personal and carer’s leave allow employees to take time off to deal with personal illness and family emergencies. This category of leave is employer-funded
• Employees are entitled up to 10 days paid personal/carer’s leave for each year of employment and two days of unpaid carer’s leave per year.
• Different paid sick and carer’s leave entitlements can be set out in an award, registered agreement or contract but the entitlements must not be less than the minimum above.
• Sick and carer’s leave accumulates in days, beginning from the employee’s first day on the job. At the completion of the year, the employee’s balance must carry over to the next year.
• Unused sick leave and carer’s leave are not paid out on termination of employment.

• All employees are entitled to two days paid compassionate leave (bereavement leave) and can be taken when an immediate family member dies or contracts a life-threatening illness or injury.
• Employees can take the leave days consecutively or as two separate periods of one day each. The ays can also be taken as any separate periods mutually agreed to by the employee and the employer.
• Employers can request evidence such as a funeral document, death notice or statutory declaration.

• Full-time, part-time and casual employees will be able to access 10 days of paid family and domestic violence leave in a 12-month period. It won’t be pro-rated for part-time or casual employees.
• Employees will be entitled to the full 10 days upfront, meaning they won’t have to accumulate it over time. The leave won’t accumulate from year to year if it isn’t used.

• Public holidays are different depending on the state or territory. Employees are entitled to public holidays according to where they are based for work.
• If employees agree to work on a public holiday, as reasonably requested by employers, they get paid for all hours worked at their base pay rate.
• Employers can provide the following entitlements for working on public holidays: extra pay, an extra day off or extra annual leave or substituting a public holiday for another day.

• Parental leave (Maternity & Paternity Leave) can be taken when an employee gives birth, an employee’s spouse or de facto partner gives birth, or when an employee adopts a child under 16 years old. To be eligible for parental leave for the 1st time with an employer, employees must have worked for their employer for at least 12 months.
• Parental Leave is paid by the Government based on the weekly rate of the national minimum wage, for up to 20 weeks.
• Employees are entitled up to 12 months unpaid parental leave and the right to request for an additional 12 months of leave. Employees who are adopting a child are entitled to 2 days unpaid pre-adoption leave to attend any relevant interviews or examinations.

• Employees are entitled to receive long service leave after working at the same company for an extended period of time.
• The laws for long service leave are different in each state or territory. These laws outline the required working period for employees to be eligible for long service leave and how much long service leave employees get.

• Employees can take leave for voluntary emergency management activities and jury service, including attendance for jury selection.
• Community service leave, except for jury service, is unpaid. There’s no limit placed on the amount of community service leave an employee can take. However, an employer is allowed to request evidence that an employee is entitled to community service leave.
• Full-time and part-time employees are entitled to ‘make-up pay’ for the first 10 days of jury selection and jury service. Make-up pay is the difference between the court’s jury service payment employees receive (excluding expense-related allowances) and the base pay rate for the ordinary hours they would have worked. Employers may request evidence for the total jury service pay amount and proof that employees have taken all necessary steps to obtain jury service pay. Employees are not  entitled to their make-up pay if they fail to provide said evidence,

1. Certain employees who have worked for the same employer for at least 12 months can request flexible working arrangements. Examples of such arrangements are changes to work hours (e.g. changes to start and finish times), patterns (e.g. split shifts or job sharing) or work locations (e.g. working from home).
2. Besides fulfilling the 12-month employment period at the same employer, employers are eligible to request flexible working arrangements if they fit any of the following:

• Are the parent or are responsible for the care of a child who is school-aged or younger
• Are a carer (under the Carer Recognition Act 2010)
• Have a disability
• Are 55 or older
• Are experiencing family or domestic violence
• Provide care or support to a family member who requires care and support due to family or domestic violence.

Temporary visa for short-term, highly-specialized work