Remote’s guide to employing in

Australia
australia flag

Make employment in Australia easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Australia, all in one easy-to-use platform.

Services available in this country:
Employer of Record ProductContractor Management
  • Capital City

    Canberra

  • Currency

    Australian dollar ($, AUD)

  • Languages

    English

  • Population size

    25,771,300

Services available in this country:
Employer of Record ProductContractor Management

Employment termination in Australia

Termination process

An employer in Australia cannot terminate an employee without providing written notice. The employer may choose to let the employee work through the notice period or provide payment in lieu of notice. Notice periods and severance pay amounts may be negotiated in employment agreements.

Termination notice requirements in Australia vary depending on the number of employees the company has, the classification of the employee, and the length of time the employee has worked for the company.

Notice period

The notice period for terminating an employee in Australia depends on the tenure of the employee at the company.

  • Employees with 1 year of service or less are entitled to one week of notice.

  • Employees with more than 1 year to 3 years of service are entitled to two weeks’ notice.

  • Employees with more than 3 years to 5 years of service are entitled to three weeks’ notice.

  • Employees with more than 5 years of service are entitled to four weeks’ notice.

  • Employees over the age of 45 who have been employed for at least two years require an additional week of notice.

Severance pay

Severance pay in Australia depends on the number of years the employee has worked for the company. Employees who have worked for an employer for less than one year are not entitled to severance pay.

  • Employees with 1 year but less than 2 years of service at the company receive at least four weeks’ severance pay.

  • Employees with 2 years but less than 3 years of service at the company receive at least six weeks’ severance pay.

  • Employees with 3 years but less than 4 years of service at the company receive at least seven weeks’ severance pay.

  • Employees with 4 years but less than 5 years of service at the company receive at least eight weeks’ severance pay.

  • Employees with 5 years but less than 6 years of service at the company receive at least 10 weeks’ severance pay.

  • Employees with 6 years but less than 7 years of service at the company receive at least 11 weeks’ severance pay.

  • Employees with 7 years but less than 8 years of service at the company receive at least 13 weeks’ severance pay.

  • Employees with 8 years but less than 9 years of service at the company receive at least 14 weeks’ severance pay.

  • Employees with 9 years but less than 10 years of service at the company receive at least 16 weeks’ severance pay.

Severance pay is reduced to 12 weeks for any employees with at least 10 years of continuous service due to a 2004 Redundancy Case decision made by the national Australian Industrial Relations Commission.

Probation periods

The employer decides on the length of the probation period. It can range from a few weeks to a few months at the start of employment. Australian employee probationary periods typically last between three and six months.

The Australian Fair Work Act refers to a Minimum Employment Period before an employee has access to an unfair dismissal claim if you terminate their employment. This minimum period is six months for companies with more than 15 employees or above, and 12 months for small businesses with less than 15 employees.