UK company hiring in Australia

On this page (7 sections)

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

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Overview and why companies expand from the United Kingdom to Australia

Shared language, legal heritage and business culture make Australia a natural first market outside Europe.
Australia offers access to Asia-Pacific customers and a time zone that complements UK working hours.
Many British professionals already live and work in Australia, which helps with hiring and leadership.
Australia has a stable regulatory environment and a strong market for financial, professional and technology services.

For UK businesses, Australia's employment system feels like a cousin of the British one. Both have written terms, statutory leave, notice and unfair dismissal protection. The biggest differences are Australia's modern awards, the 12% superannuation contribution and the way public holidays sit on top of annual leave.

United Kingdom 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	United Kingdom	Australia
Employment contracts	Every employee and worker must receive a written statement of employment particulars on or before their first day. Contracts are commonly permanent and full-time, with terms often set out in a staff handbook.	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 statutory probation; 3 to 6 months is common. The qualifying period for ordinary unfair dismissal claims is 2 years, falling to 6 months from 1 January 2027 under the Employment Rights Act 2025.	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	Working Time Regulations limit the average working week to 48 hours unless the employee opts out in writing. Workers are entitled to 11 hours daily rest and a 20 minute break when working more than 6 hours.	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	National Living Wage of £12.71 an hour for workers aged 21 and over from 1 April 2026, with lower rates for younger workers and apprentices.	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	5.6 weeks of paid statutory leave a year (28 days for a five-day week), which employers can count bank holidays towards.	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	Statutory Sick Pay is payable by the employer. From 6 April 2026 it is paid from the first day of sickness and the lower earnings limit has been removed.	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	Up to 52 weeks maternity leave with Statutory Maternity Pay for up to 39 weeks. Paternity leave and unpaid parental leave are day-one rights from April 2026. Shared parental leave is also available.	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	8 bank holidays in England and Wales, 9 in Scotland and 10 in Northern Ireland. There is no statutory right to take them off on top of the 5.6 weeks entitlement.	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	Employer Class 1 National Insurance of 15% on earnings above £5,000 a year. Workplace pension auto-enrolment requires minimum contributions of 8% of qualifying earnings, with the employer paying at least 3%.	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	Income tax and National Insurance are deducted through PAYE and reported in real time to HMRC. Employers with a pay bill over £3 million also pay the 0.5% Apprenticeship Levy.	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 employer notice is 1 week after 1 month of service, then 1 week per complete year of service up to 12 weeks. Contracts often give more.	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	Ordinary unfair dismissal protection after 2 years of service (6 months from January 2027). Discrimination and automatically unfair dismissal claims can be brought from day one.	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	Statutory redundancy pay after 2 years of service, based on age, length of service (up to 20 years) and a weekly pay cap that is reviewed each April.	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	Workplace pension auto-enrolment, Statutory Sick Pay, statutory family leave and pay, and compulsory employer's liability insurance.	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	Post-employment restrictions such as non-competes are enforceable only if they protect a legitimate interest and go no further than reasonably necessary. Employers generally own IP created by employees in the normal course of their duties.	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	Employers must carry out right to work checks before employment starts. Sponsored hires usually need a Skilled Worker visa and a sponsor licence. Australians aged 18 to 35 can use the Youth Mobility Scheme.	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

Modern awards

The UK has a national minimum wage but no system of industry awards. In Australia, most employees are covered by a modern award that sets minimum pay by classification, overtime, penalty rates and allowances. Award coverage can apply to office, IT and sales roles, not just manual work. Getting the award right is the single most important step in Australian payroll.

Superannuation vs pensions and NI

Instead of National Insurance and auto-enrolment, Australian employers pay 12% super on qualifying earnings, each payday since July 2026. There is no employer social security tax, but payroll tax applies at state level once wages pass a threshold.

Leave and public holidays

UK statutory leave is 5.6 weeks including bank holidays. Australia gives 4 weeks of annual leave plus public holidays on top, and many awards add a 17.5% leave loading. Australian personal/carer's leave is fully paid for 10 days a year, rather than Statutory Sick Pay.

Dismissal

Both countries protect against unfair dismissal, but Australia's minimum employment period is shorter than the UK's current 2 years, and claims go to the Fair Work Commission, usually within 21 days of dismissal. Australia has no equivalent of the UK's ACAS early conciliation, but the Commission runs conciliation conferences.

Notice and redundancy

Notice periods are similar in principle, but Australian statutory notice tops out at 4 weeks (5 for older employees) while UK notice can reach 12 weeks. Australian redundancy pay follows a fixed NES scale and small businesses are exempt.

Common compliance traps

Assuming no award applies because the role is professional.
Treating public holidays as part of annual leave, as in the UK.
Budgeting for UK-style on-costs rather than 12% super plus payroll tax and workers' compensation.
Using garden leave and PILON clauses without checking how they interact with Australian notice and leave rules.
Drafting broad non-competes. Australian courts apply a strict reasonableness test, and a ban for most workers has been proposed.
Missing state rules on payroll tax, workers' compensation and long service leave.

How an EOR works for UK companies in Australia

An Australian EOR employs your hire under a local contract, identifies the applicable award, runs payroll in AUD, pays super each payday and holds workers' compensation insurance. You direct the work and receive one monthly invoice, which can often be paid in GBP. When your Australian team grows, you can register a subsidiary or branch and transfer employees. See EOR vs setting up an Australian entity.

Frequently asked questions

Is unfair dismissal similar in the UK and Australia?

The concepts are similar, but the thresholds differ. In Australia the minimum employment period is 6 months (12 for small businesses), and higher earners outside awards and agreements are excluded above the high income threshold of $190,100. In the UK the qualifying period is 2 years, falling to 6 months from January 2027.

How does superannuation compare with UK auto-enrolment?

Australian super is a 12% employer contribution with no requirement for the employee to contribute. UK auto-enrolment requires at least 8% of qualifying earnings in total, with the employer paying at least 3%. UK employers also pay National Insurance, which has no direct Australian equivalent.

Are bank holidays and Australian public holidays treated the same way?

Not quite. In the UK, employers can count bank holidays towards the 5.6 weeks of statutory leave. In Australia, public holidays are additional to 4 weeks of annual leave, and employees who work on them are usually paid penalty rates under their award.

Do UK employment contracts work in Australia?

No. Australian contracts need to reflect the Fair Work Act, the National Employment Standards and any applicable award. A UK template can be a starting point for structure but not for terms.

Can a UK company employ in Australia without an Australian company?

Yes, through an Employer of Record, or by registering the UK company with ASIC as a foreign company and employing through a branch.

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 UK company