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August 8, 2023
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3 mins
Australia, a prosperous and advanced nation, boasts the 13th largest economy globally. It stands strong at the 8th position in terms of human development and ranks 10th in per capita income worldwide. The Australian economy thrives on its plentiful natural resources and flourishing international trade, which serve as its fundamental pillars.
The Fair Work Act of 2009 serves as the governing legislation for employment and workplace relations in Australia. The Australian labor law framework draws its foundation from:
The language used in the contract does not specify any specific statutory requirements.
In Australia, the typical probationary period ranges from one to six months.
Employees in Australia receive their wages either bi-weekly, meaning every second week or specifically on the 15th and 30th of each month, or monthly, typically from the 28th to the 30th.
As of July 2021, the minimum wage in Australia stands at 20.33 AUD per hour.
As a general rule, overtime pay on weekdays in Australia is calculated at 1.5 times the regular pay for the initial 3 hours of overtime. Beyond that, it is calculated at twice the regular pay. On Sundays, the payment rate is twice the regular pay. However, it's important to note that these rates may vary across industries and states.
Having a 13th month pay is not a mandatory requirement in Australia.
Superannuation Guarantee Percentage — 10% (till 2022 July)
Afterwards, for the next one year, the rate will be 10.5%.
Employees are obligated to pay a 2% Medicare levy.
In Australia, the Goods and Services Tax (GST) is implemented instead of Value Added Tax (VAT). The standard rate of GST is 10%.
An employee can resign or be terminated by the employer. The major grounds for termination include:
The notice period in Australia varies based on the duration of employment. During the probationary period, it typically ranges from 7 to 30 days. For permanent employees, the notice period can extend from one to twelve weeks.
Redundancy can impact an employee's job in Australia, leading to considerations regarding redundancy/severance pay based on various employment terms.
Foreign individuals seeking employment opportunities in Australia must apply for a visa through the diverse immigration programs managed by the Department of Home Affairs (DHA) of Australia.
To address skill shortages and recruit foreign nationals when qualified Australians are unavailable, businesses can make use of the Temporary Skill Shortage visa (subclass 482). This visa allows foreign nationals to live and work in Australia for a period of 2 years, with the potential to extend it up to 4 years in certain situations.
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If you're considering hiring employees or contractors in Australia or seeking compliant payroll solutions, reach out to us or book a demo at http://niural.com. For further insights, follow us on Twitter @niuralhq. Make informed decisions and ensure a successful hiring process in Australia!
