HR Software for Australia

Leave Policy

Maternity Leave

In Australia there is no longer maternity leave, only paid and unpaid parental leave that covers everything. The parenting periods are mandatory and last 90 calendar days.

Paternity Leave

Paternity leave no longer exists in Australia, there is only paid and unpaid parental leave that covers everything

Parental Leave

Employees who have worked for 12 months are entitled to 20 weeks of paid parental leave and up to 24 months of unpaid parental leave. These vacations can be taken together. For paid parental leave, eligible employees receive the national minimum wage from the state for this period.

Sick Leave

Employees are entitled to up to 10 days of paid sick leave. During this time, employees receive their normal wages, which are paid by the employer.

Pay & Tax

Minimum Wage Requirements

The minimum wage is AUD 3825.46 per month (AUD 882.80 per week). However, the minimum wage may be higher for certain industries. Please see the following link to calculate it:

Individual Income Tax

Personal income tax ranges from 0% to 45%. Income tax is calculated at progressive rates. Several additional factors can affect overall rates, such as: B. household status, number of children, place of residence, age and marital status.

Gross Annual IncomeTax Rate (%)
0 Up to AUD 18,2000%
AUD 18,201 Up to AUD 45,00019%
AUD 45,001 Up to AUD 120,00032.5%
AUD 120,001 Up to AUD 180,00037%
Over AUD $180,00145%

Payroll Cost

The cost to the employer is generally estimated at around 16.4-18.5% of the employee’s salary. However, the total burden may vary depending on the state in which the employee lives.

  • Guarantee fee for superannuation – 11.0%
  • Employee protection – 0.14-1.0%
  • Payroll tax – 4.95-6.85%

If health benefits are offered to the employee, a mandatory tax on additional benefits is imposed. The wage tax is 47% of the health insurance premium, multiplied by a gross rate of 1.8868.

Overtime Pay & Maximum Hours

The standard working hours are 7.6 hours per day and 38 hours per week (1967 hours per year). The standard working week lasts from Monday to Friday.

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.

Terminations in Australia can be complex. Outside the probationary period, the employer in Australia cannot terminate at will and the termination must be for good cause.

Proper terminations include:

  • Voluntary by the employee
  • By mutual agreement
  • Unilaterally by the employer due to:
    1. Probation period
    2. Objective reasons
    3. Dismissal for disciplinary reasons
    4. Performance due to unsuitability for the position
  • When the contract expires

Notice Period

The minimum notice period is 1 week and increases depending on the length of the employment relationship.

  • Less than 1 year of employment – 1 week’s notice period
  • 1 – 3 years of employment – 2 weeks notice period
  • 3 – 5 years of employment – 3 weeks notice period
  • 5 years of service – 4 weeks notice period

If the employee is over 45 years old and has worked for the same employer for 2 years, he or she is entitled to an additional week’s notice.

Severance for Employees

The amount of severance pay depends on the number of years an employee has worked at the company.

  • If you have been with the company for less than 1 year, no severance pay will be paid.
  • 1-2 years = 4 weeks severance pay.
  • 2-3 years = 6 weeks severance pay.
  • 3-4 years = 7 weeks severance pay.
  • 4-5 years = 8 weeks severance pay.
  • 5-6 years = 10 weeks severance pay.
  • 6-7 years = 11 weeks severance pay.
  • 7-8 years = 13 weeks severance pay.
  • 8-9 years = 14 weeks severance pay.
  • More than 10 years = 16 weeks severance pay.

In order to protect you from unforeseen financial risks arising from the termination of employment relationships, IceHrm applies a severance pay provision in all employment contracts in this country. IceHrm has extensive expertise in managing litigation risk globally and our severance provision calculation is based on prevailing common law or statutory requirements and best local practices. If your employee resigns or is not entitled to severance pay, you will receive a refund of any unused amounts.

Statutory Time Off

Paid Time Off

Both full-time and part-time employees are entitled to 20 days of paid time off per year. PTO is credited monthly at 1.67 days per month. Employees are entitled to annual leave if they have accumulated enough leave days to take.

Public Holidays

Australia observes 7 national and several regional holidays, depending on where the employee lives. National holidays include:

  • New Year celebration
  • Australian day
  • Good Friday
  • Easter Monday
  • Anzac Day
  • Christmas Day
  • Boxing Day

Onboarding

Onboarding

Onboarding takes 2 business days after the customer signs the SOW.

Additional Info

Employment Contract Details

The contracts must be written in English. They must be in writing and signed by both parties.

The contract must contain the following:

  • Annual salary, position
  • Roles and responsibilities
  • Start date
  • Frequency of payment, termination
  • Notice period
  • Working hours, bonuses
  • Vacation
  • Sick leave
  • Long-term vacation
  • Annual leave
  • Retirement benefits entitlements.

Probation Period

Employees hired through Deel have a probationary period of 90 days, which you can extend up to 180 days. From January 2022, it is Deel’s company policy to include probationary periods in all employment contracts.

The probationary period helps employers and employees make sure they are a good fit for each other. This allows the company to quickly decide whether the position is right for them, and the employee can see whether it matches their career goals.