Australian employment law
Annual Wage Review 2026: what changed on 1 July
The National Minimum Wage rose to $26.44 an hour and most award rates rose 4.75% from 1 July 2026. What employers and EOR clients need to check.
Independent guides to global hiring
Hire in Australia or from Australia, without the guesswork
Clear, sourced information on Employers of Record, Australian employment law and the rules in the countries Australian businesses hire in most. No sales pitch, no provider rankings.
- 10 countriescompared with Australia
- 16 rulesside by side in every country guide
- Official sourcescited on every page
- Reviewed 2026including Payday Super changes
The basics
What an EOR actually is
An Employer of Record is a company that becomes the legal employer of your staff in a country where you don't have your own entity. You choose the person and manage their work. The EOR employs them, pays them and keeps you compliant with local employment law.
Think of it as renting a fully set-up local employer. Instead of registering a company, opening a bank account, registering for payroll tax and learning the local award system, you sign one service agreement with the EOR and they put your new hire on their payroll. Your employee works in your team, on your projects, often with your email address. Legally, though, their employer is the EOR.
How the three-party model works
1
You and the EOR
You sign a service agreement that sets the fee, what the EOR does and who is responsible for what, including IP and liability.
2
The EOR and the employee
The EOR signs a local employment contract with your hire and becomes responsible for pay, tax, leave and statutory entitlements.
3
You and the employee
You direct the day-to-day work: tasks, goals, tools, team meetings and performance. The EOR invoices you for salary, on-costs and its fee.
What the EOR handles
- Compliant local employment contract
- Payroll, tax withholding and payslips
- Superannuation, pension or social security contributions
- Leave, public holiday and award entitlements
- Statutory registrations and workers' compensation insurance
- Onboarding paperwork and lawful termination steps
What your company keeps
- Choosing who to hire and what to pay
- Day-to-day direction and performance management
- Workplace culture, tools and equipment
- Commercial decisions, sales and customer contracts
- Approving pay rises, bonuses and terminations
- Practical health and safety for remote work set-ups
When an EOR makes sense
- You're testing a new market before committing to an entity
- You need 1 to 15 people quickly, often in sales, support or engineering
- You've found a great candidate in a country where you have no presence
- You want to convert a long-term contractor into a compliant employee
When it usually doesn't
- You plan a large local team or office within a year or two
- You need to sign customer contracts or hold licences locally
- The work is genuinely independent and project-based
- You need visa sponsorship and the EOR can't sponsor
Who it's for
Built for small teams crossing borders
Most businesses that use an Employer of Record are hiring their first handful of people in a new country. The work happens in your team. The employment admin happens somewhere else.
- Overseas companies entering AustraliaUS, UK, European and Asian businesses hiring their first Australian sales, support or engineering staff.
- Australian companies going globalStartups and SMEs hiring in New Zealand, the UK, the US, Singapore or the Philippines.
- Teams converting contractorsBusinesses moving long-term contractors onto compliant employment contracts.
Compare your options
EOR vs setting up an entity vs contractors
There are three common ways to get people working for you in a new country. Each has a place.
| Question | Employer of Record | Your own entity | Contractors |
|---|---|---|---|
| Who is the legal employer? | The EOR | Your local company | Nobody: it is a business-to-business contract |
| Time to first hire | Usually days to a few weeks | Typically weeks to months (registration, bank, payroll, insurance) | Days |
| Upfront set-up cost | Low | Higher: legal, accounting, registrations | Low |
| Ongoing cost | Monthly fee per employee on top of salary and on-costs | Accounting, payroll, compliance and director costs | Contractor rate only |
| Compliance burden on you | Mostly carried by the EOR | All yours | Misclassification risk is yours |
| Control over the work | Full day-to-day control | Full control | Limited: control is a sign of employment |
| Can it sell or sign contracts locally? | No, the EOR only employs | Yes | Not on your behalf |
| Best for | Testing a market or hiring 1 to 15 people | Long-term, larger or revenue-generating operations | Genuinely independent, project-based work |
Read more: EOR vs setting up an Australian entity ·Employee vs contractor in Australia
Popular destinations
Country-by-country employment guides
Each guide compares 16 employment rules side by side with Australia, from probation and leave to termination and visas, with official sources.
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Expanding from Australia to
Hiring your first person overseas? Each destination guide shows what will feel familiar, what won't and the compliance traps Australian employers run into most, from 13th month pay in the Philippines to common law notice in Canada.
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EOR questions, answered
What is an Employer of Record in simple terms?
An Employer of Record (EOR) is a company that legally employs someone on your behalf in a country where you do not have your own entity. The EOR signs the employment contract, runs payroll and handles tax, superannuation or social security and employment law compliance. You direct the person's day-to-day work and pay the EOR a fee. See our full guide: what is an Employer of Record.
Is using an EOR legal in Australia?
Yes. There is no specific EOR licence in Australia, but the EOR must meet every obligation of an employer, including the National Employment Standards, the applicable modern award, superannuation, PAYG withholding, payroll tax and workers' compensation. Some states also regulate labour hire, so check how a provider is set up before signing.
Can a foreign company hire in Australia without an entity?
Yes. A foreign company can engage genuine independent contractors or hire employees through an EOR without registering a company or a foreign branch. If the company wants to sell, sign customer contracts or hire at scale in Australia, it will usually need its own entity and should get tax advice on permanent establishment risk.
How much does an EOR cost?
Providers usually charge a fixed monthly fee per employee or a percentage of salary, on top of the employee's pay and statutory on-costs such as 12% superannuation, payroll tax where it applies and workers' compensation. Our EOR costs guide explains the pricing models and what to check in a quote.
What is the difference between an EOR and a PEO?
A PEO (professional employer organisation) co-employs your staff alongside your own registered entity, sharing HR and payroll tasks. An EOR is the sole legal employer, so you do not need an entity at all. The terms are sometimes used loosely in Australia, so read the contract. See EOR vs PEO.
Can an EOR sponsor a visa in Australia?
Only if the EOR itself is an approved sponsor and can meet the sponsorship obligations for the role. Many EORs cannot sponsor, so if you need to bring someone into Australia on a Skills in Demand (subclass 482) visa, confirm this before you choose a route.
Who owns the intellectual property an EOR employee creates?
The EOR is the legal employer, so a well-drafted EOR arrangement includes an IP assignment from the employee to the EOR and onward from the EOR to you. Check that the employment contract and your service agreement both deal with IP and confidentiality.
When should we move from an EOR to our own entity?
Common triggers are a growing headcount (often somewhere around 10 to 20 employees), the need to sell or sign contracts locally, permanent establishment concerns or EOR fees exceeding the cost of running an entity. Many EORs support a transfer of employees to your new entity. See EOR vs setting up an Australian entity.
Not sure which route fits?
Compare an EOR with setting up your own entity or engaging contractors, then check the rules for your target country.