Employment Law in Australia

In Australia, workers can be classified in numerous ways, including:

• Full-time employees: Employed on a permanent basis and usually work 38 hours per week, these workers receive paid leave.

• Part-time employees: Employed on a permanent basis at less than 38 hours per week on a regular schedule, these workers receive the same leave as full-time employees, but on a pro-rated basis.

• Casual employees: Casual employees have no firm advance commitment to ongoing employment. But what constitutes “firm advance commitment” can be tricky, and definitions changed in August 2024. Employers must determine the true nature of the work and whether it is reasonably likely there might be future work, if the worker can reject work, and many other factors.

• Fixed-term contract employees: Although they receive many of the same benefits as full- or part-time employees, these employees work under a contract with a set end date. Fixed-term contracts have numerous requirements, including limitations on time, number of renewals, and amount of extensions.

• Apprentices and trainees: Apprentices in Australia train with an organization that’s registered with the government while they work for your company, which is a legal requirement in their contracts.

• Shift workers: In Australia, a shift worker is defined as someone who works a particular shift and gets paid more for working more shifts. What entitlements shift workers have depend on the job and industry.

• Daily or weekly hires: In the construction, building, and plumbing industries, employees can also be hired on a daily or weekly basis. These employees are still entitled to a written employment contract with many of the same provisions as a full-time contract.

• Outworkers: In Australia, an outworker is defined as an employee or contractor who works at home or a place that wouldn’t normally be considered a business location. They’re common in the textile, clothing, and footwear industries.

• Unpaid workers: Australia does allow for some forms of unpaid work in order to provide training or test a person’s job skills.

Probation periods

 In Australia, probation periods at the start of employment contracts are common. The duration is determined by the employer and typically ranges from three to six months. Employees who are on probation receive the same entitlements as other employees.

Termination and notice periods

In Australia, even if you are terminating an employee for a cause such as poor performance, bad conduct, or changes to your business needs, you usually still need to provide written notice of termination. This notice must be given from one to four weeks before the end of their employment, depending on how long they have been with our organization. Employees over the age of 45 are also required to receive addition time. An employer may elect to pay out remaining wages in lieu of having them remain employed during their termination period.

If you’re ending an employment relationship due to redundancy, you may be required to provide redundancy pay (also known as severance). How much severance you are legally required to offer depends on the type of employee, the length of their service, and your industry.