Canadian company hiring in Australia

On this page (7 sections)

Overview
Canada and Australia at a glance
The differences that matter most
Common compliance traps
How an EOR works for Canadian companies in Australia
FAQs
Sources

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Six time zones, 14 to 18.5 hours behind SydneyTime difference

Overview and why companies expand from Canada to Australia

Australia is a familiar, English-speaking market with strong demand for Canadian mining, technology and financial services expertise.
Both countries have major resources sectors, so Canadian firms often follow their clients to Australia.
Australian staff can cover Asia-Pacific time zones for Canadian businesses.
Working holiday arrangements between the two countries make it easier for young professionals to move.

Canadian employers are used to a patchwork: each province sets its own employment standards, federally regulated industries follow the Canada Labour Code and common law can add long notice periods. Australia is more centralised. One national system covers most private sector employment, with modern awards setting industry-specific minimums.

Canada and Australia at a glance

Summary only. Figures were checked against the official sources listed below on 2026-10-08. Many rules depend on the employee's award, contract, state or province.
Topic	Canada	Australia
Employment contracts	Most employees are covered by provincial employment standards; federally regulated industries such as banking, telecoms and interprovincial transport follow the Canada Labour Code. Written contracts are not required but are important for limiting termination costs.	A written contract is not legally required but is standard practice. Employers must give every new employee the Fair Work Information Statement, plus the Casual or Fixed Term Contract Information Statement where relevant. A modern award or enterprise agreement usually sets minimum terms. Fixed-term contracts are generally limited to 2 years or 2 consecutive contracts.
Probation	No general statutory probation, but many statutes waive termination notice early on. For example, Ontario requires no statutory notice in the first 3 months.	No statutory probation. In practice the unfair dismissal "minimum employment period" works as one: 6 months, or 12 months for small businesses with fewer than 15 employees.
Working hours	Varies by jurisdiction. Under the Canada Labour Code standard hours are 8 a day and 40 a week. In Ontario overtime starts after 44 hours a week.	Maximum 38 ordinary hours a week plus reasonable additional hours under the National Employment Standards. Awards set overtime rates. Employees have a right to disconnect outside working hours unless refusing is unreasonable.
Minimum wage	Federal minimum wage of C$18.15 an hour from 1 April 2026 for federally regulated employers. Each province and territory sets its own rate, and the higher rate applies.	National Minimum Wage of $26.44 an hour ($1,004.90 a week) from 1 July 2026. Most employees are covered by a modern award with higher minimum rates for their classification.
Annual leave	Usually 2 weeks after 1 year of service, rising with service (federally 3 weeks after 5 years and 4 weeks after 10 years). Provinces vary.	4 weeks paid annual leave a year for full-time employees (5 weeks for some shift workers), accruing progressively. Untaken leave is paid out on termination. Many awards add a 17.5% leave loading.
Sick leave	Federally regulated employees get up to 10 days paid medical leave a year. Provincial rules vary from unpaid days to a few paid days.	10 days paid personal/carer's leave a year for full-time employees, plus 2 days unpaid carer's leave and 2 days paid compassionate leave per occasion. All employees can also take 10 days paid family and domestic violence leave a year.
Parental leave	Job-protected maternity and parental leave, with income support paid through Employment Insurance rather than by the employer.	Up to 12 months unpaid parental leave after 12 months of service, with the right to request 12 more. The government funds up to 26 weeks of Parental Leave Pay at the national minimum wage from 1 July 2026, paid through Services Australia rather than the employer.
Public holidays	Federally regulated employees get 10 general holidays. Each province and territory sets its own list.	National public holidays such as New Year's Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Christmas Day and Boxing Day, plus state and territory holidays. Employees who work on a public holiday are usually paid penalty rates under their award.
Retirement and social security	Canada Pension Plan contributions of 5.95% each from employer and employee on earnings up to C$74,600 in 2026, plus second-tier CPP2 contributions of 4% each up to C$85,000. Quebec runs the QPP instead.	Superannuation Guarantee of 12% of qualifying earnings, paid by the employer on top of wages. Since 1 July 2026 super must be paid each payday and reach the fund within 7 business days (Payday Super). There is no separate employer social security levy.
Payroll taxes	Employers withhold income tax and pay Employment Insurance premiums at 1.4 times the employee rate. Some provinces add payroll or health taxes.	Employers withhold PAYG income tax from wages. Each state and territory charges payroll tax once total Australian wages pass a threshold, for example 5.45% above $1.2 million in NSW and 4.85% above $1 million in Victoria. Workers' compensation premiums are also payable.
Notice periods	Statutory minimums are short (for example 1 to 8 weeks in Ontario), but without a well-drafted contract the courts award common law reasonable notice, which can reach 24 months for long-serving senior staff.	Employer notice under the National Employment Standards: 1 week (up to 1 year of service) rising to 4 weeks (over 5 years), plus 1 week if the employee is over 45 with at least 2 years of service. Pay in lieu is allowed. Awards set employee notice.
Dismissal protection	Dismissal without cause is allowed with notice or pay in lieu. Federally regulated non-managers have unjust dismissal protection after 12 months, and Quebec protects employees after 2 years.	Unfair dismissal protection applies after the minimum employment period to employees covered by an award or agreement, or earning under the high income threshold of $190,100 (from 1 July 2026). General protections against adverse action apply from day one. Small businesses can follow the Small Business Fair Dismissal Code.
Severance	Some jurisdictions require statutory severance on top of notice. Ontario requires 1 week per year of service (up to 26 weeks) for larger employers.	Statutory redundancy pay of 4 weeks (1 to 2 years of service) rising to 16 weeks (9 to 10 years), then 12 weeks at 10 years or more, when long service leave usually takes over. Small businesses with fewer than 15 employees are generally exempt.
Mandatory benefits	CPP or QPP, Employment Insurance, workers' compensation and statutory leave. Provincial health systems cover core medical care.	Superannuation, workers' compensation insurance (state-based and compulsory), paid leave under the National Employment Standards and long service leave under state and territory laws, usually after 7 to 10 years of service.
IP and restraint clauses	Courts strictly limit non-competes. Ontario has banned them for most employees since October 2021. Non-solicitation and confidentiality clauses are more reliable.	Post-employment restraints are only enforceable if reasonable to protect a legitimate business interest. Employers generally own IP that employees create in the course of employment. The federal government has proposed banning non-compete clauses for employees under the high income threshold from 2027; this was not law at the last review.
Visas and right to work	Most foreign hires need a work permit, often supported by a Labour Market Impact Assessment. Australians aged 18 to 35 can apply through International Experience Canada.	Every worker needs Australian work rights, which employers can check through VEVO. Sponsored skilled hires generally use the Skills in Demand (subclass 482) visa, which needs an approved sponsor. Some EORs can sponsor, many cannot.

The differences that matter most

One national system, plus awards

Instead of provincial standards, most Australian employers follow the national Fair Work Act and the National Employment Standards. On top of that, modern awards set minimum pay by classification, overtime and penalty rates, which has no direct Canadian equivalent outside collective agreements.

Notice exposure is lower, dismissal protection is different

Canadian common law notice can be expensive. In Australia, notice is set by contract within NES minimums of 1 to 5 weeks, so exposure is more predictable. However, Australian employees can bring unfair dismissal claims after the minimum employment period if the dismissal is harsh, unjust or unreasonable, and general protections apply from day one.

Super instead of CPP and EI

Australian employers pay 12% super each payday. There are no CPP or EI premiums, but state payroll tax applies above a threshold and workers' compensation insurance is compulsory.

Leave is more generous

Australian full-time employees get 4 weeks of annual leave from the first year, compared with 2 weeks in most Canadian jurisdictions. Personal/carer's leave is 10 paid days a year.

Restraints

Ontario has banned most non-competes. Australia hasn't yet, but post-employment restraints must be reasonable to be enforced, and the federal government has proposed a ban for workers under the high income threshold.

Common compliance traps

Assuming the minimum wage is the only floor, rather than checking the award.
Budgeting 2 weeks of vacation instead of 4.
Missing super or paying it quarterly instead of each payday.
Forgetting state registrations for payroll tax and workers' compensation.
Using Canadian probation clauses that don't match Australian unfair dismissal rules.

How an EOR works for Canadian companies in Australia

An Australian EOR employs your hire under a local contract, applies the right award, runs payroll with PAYG withholding, pays super each payday and holds workers' compensation insurance. You manage the work and pay one invoice, often in CAD or USD. When you need a larger local team, you can register an Australian subsidiary. See EOR vs setting up an Australian entity.

Frequently asked questions

Is employment law in Australia national or by state?

Mostly national. Unlike Canada, where most employees are covered by provincial employment standards, most Australian private sector employees are covered by the federal Fair Work Act. States still handle payroll tax, workers' compensation and long service leave.

Is there common law reasonable notice in Australia?

In theory, courts can imply reasonable notice where a contract is silent, but well-drafted Australian contracts specify notice and the National Employment Standards set minimums. In practice, notice exposure is usually much lower than under Canadian common law.

How does super compare with CPP?

CPP is a government pension funded by matching employer and employee contributions. Australian super is a 12% employer-only contribution into the employee's own fund, paid each payday.

Does Australia have Employment Insurance?

No. There are no unemployment insurance premiums. Unemployment benefits are funded from general taxation. Parental Leave Pay is also funded by the government rather than through an insurance scheme.

Can I use my Canadian contract template?

No. Australian contracts must reflect the Fair Work Act, the National Employment Standards and any applicable modern award.

Sources

Last reviewed: 2026-10-08

Figures on this page were checked against these official sources on 8 October 2026. Rates and thresholds change, often on 1 January, 1 April or 1 July, so confirm current figures before relying on them.

New to the model? Start with what an Employer of Record is, then compareEOR costs and pricing models.

Hiring in Australia as a Canadian company