25 Best Employer of Record in Australia: Reviewed in 2024
10 Best Australian Employer of Record Service Shortlist
Here's my pick of the 10 best software from the 25 tools reviewed.
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Are you interested in hiring employees in Australia but feeling intimidated by all the legal requirements? Instead of registering a new legal entity with the Australian Securities and Investments Commission (ASIC) and the Australian Taxation Office (ATO), I recommend using an Employer of Record (EOR) service in Australia to manage all the employment regulations on your behalf.
An Australian EOR service can help you legally hire, manage, and pay employees based in Australia with ease. This way, you can access Australian talent without having to open a legal entity abroad. Your EOR employees will have local support, and your operations will stay in compliance with Australia’s Fair Work Commission, Safe Work Australia, and other legal bodies at all times. Sounds perfect, right? However, which Australian EOR service is the best fit for your needs?
To help you narrow down your options, I’ve compiled my research into this list of the best Employer of Record services for hiring in Australia.
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Market Details for Hiring in Australia
- Capital City: Canberra
- Currency: Australian Dollar (AUD)
- Payroll Frequency: Monthly
- Official Language: English
- Approx. Population: 27.3 Million
- Public Holidays: 12 to 14 days (regional variations)
Why Hire Employees in Australia?
Australia is particularly known for its deep talent marketplace in specific industries such as technology, healthcare, financial services, and mining. The thriving tech scene, advanced healthcare system, and stable financial sector provide a rich pool of specialized skills. In addition, Australia's global leadership in mining and resources attracts experts in these fields.
Other aspects that make Australia an attractive market for hiring remote employees include its large English-speaking population, favorable time zone for global coordination, economic stability, and strong work ethics. These factors combined make Australia a compelling choice for companies seeking the best talent globally.
What is an Employer of Record in Australia?
An Employer of Record (EOR) in Australia refers to a third-party service that legally employs workers in Australia on behalf of your company. While your organization retains control over these employees’ daily tasks and workloads, the EOR takes on the full legal responsibility for employment. As the legal employer, the EOR assumes full legal responsibility for any new hires. This includes managing payroll, deducting taxes, ensuring compliance with local employment regulations, administering benefits, and handling any other employee-related requirements specific to Australia.
Partnering with an EOR service is beneficial for companies wanting to hire skilled foreign workers or expand their operations into Australia since it simplifies this process considerably. Instead of requiring your HR team to master Australia’s employment laws and regulations, you can delegate these responsibilities to a local EOR in Australia and gain peace of mind that your global operations will be compliant.
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Best Employer of Record in Australia: Pricing Comparison Chart
This comparison chart summarizes pricing details for my top Employer of Record selections for hiring staff in Australia to help you find the best EOR service for your budget and business needs.
| Tools | Price | |
|---|---|---|
| Deel | Flat rate user pricing, with a free version for businesses with up to 200 people | Website |
| RemoFirst | From $25/user/month | Website |
| Omnipresent | From $100/employee/month | Website |
| Skuad | From $199/employee/month or $19/contractor/month | Website |
| Remote | From $29/user/month | Website |
| Atlas HXM | From $595/employee/month or $49/contractor/month | Website |
| Horizons | Pricing upon request | Website |
| Native Teams | $79/employee/month | Website |
| Velocity Global | Pricing upon request | Website |
| Globalization Partners | Pricing upon request | Website |
Compare Software Specs Side by Side
Use our comparison chart to review and evaluate software specs side-by-side.
Compare SoftwareHow to Choose an Employer of Record in Australia
An EOR service can solve many different challenges and simplify the process of hiring and managing staff in Australia. To help you figure out which EOR service best fits your business needs, you need to document your specific challenges first.
As you work through your own unique selection process, keep the following points in mind:
- What problem are you trying to solve? Start by identifying the challenges you're trying to overcome, whether that's sourcing staff within a specific Australian state or territory, managing compliance with Australia’s employment laws and tax regulations, or offering health benefits that are compliant with Australian government requirements.
- Who will benefit from the service? Consider who will manage the EOR relationship (i.e., who will your main contact people be in-house?) and how having an employer of record will improve their day-to-day work tasks.
- What is your budget? To evaluate cost, estimate how many employees you anticipate hiring in Australia. Since EOR providers typically charge a monthly fee for each new hire, this will help you anticipate your monthly costs.
- What outcomes are important? Review the capabilities you want to gain or improve, and how you will measure success. Being clear on your desired outcomes upfront is crucial to avoid wasting valuable time.
- Would the EOR platform work with your technical requirements? Consider how the service provider's software ecosystem would work alongside your existing workflows and systems. Does their software framework integrate with your existing HR software, or would you face data management roadblocks?
Remember every business is different — don’t assume that an Australian employer of record service will work for your organization just because it's popular.
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Deel
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Rippling
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Willo
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8
Reviews of the Best Employer of Record Services in Australia
To help you find the best EOR service for hiring employees in Australia, I’ve described my top 10 selections in detail, including the specific services each provider offers and how HR teams can use them effectively. I’ve also included 10 more EOR service providers for Australia below in case you’d like more options to consider.
Deel
Best for offering local health benefits to Australian EOR employees
Deel is a well-established employer of record platform that helps companies rapidly employ workers in 150+ countries, including Australia.
Deel owns a local entity in Australia staffed with legal experts to keep track of regulatory changes and ensure all legal obligations are met on your behalf. To hire an employee in Australia with Deel, the average onboarding time frame is 2 days.
Why I picked Deel: Deel excels as an EOR service provider in Australia by offering streamlined contract management, ensuring compliance with Australian employment laws. Deel also helps organizations offer localized employee benefits for Australian staff, including private health insurance, workers compensation insurance, and social security contributions.
In addition, Deel has launched several new offerings over the past year, including global payroll, global mobility support, integrated Slack tools, and advanced integrations. These services, all combined, facilitate efficient and compliant hiring processes within the Australian talent market.
Deel Key Services:
Deel offers end-to-end management for your employees based in Australia, covering everything from hiring and onboarding to termination. Their web app is user-friendly and provides a range of features to help businesses manage their remote teams effectively, including contract management and expense tracking.
Their integrated contract management function supports advanced customizations such as stipends, signing bonuses, and stock options. You can also use Deel for visa and immigration support if you want to relocate existing employees to Australia, with Deel managing the entire visa process for your organization in-house.
Deel offers 24/7 customer support and live chat and is known for its fast support.
Pros and cons
Pros:
- Comprehensive employee benefits
- Local compliance expertise
- Fast onboarding process
Cons:
- Potential complexity for first-time users
- Limited customization options
Remofirst is a global EOR service provider on a mission to free employers from geographical boundaries so they can build global teams with ease. They offer EOR services in 180+ countries, eliminating the need to set up multiple legal entities abroad.
Why I picked Remofirst: For budget-conscious businesses expanding their remote teams in Australia, Remofirst is a great option. Australia has strict labor laws, and Remofirst handles these complexities by making sure your employees comply with all legal requirements. This saves you from having to worry about establishing a local office or navigating Australian employment law on your own.
Remofirst’s EOR services in Australia also include managing taxes and payroll in line with local rules, which can be tricky to navigate. They ensure your employees receive the proper superannuation contributions and take care of income tax withholding, helping you avoid costly mistakes. They'll also automatically calculate your team’s hours, time off, holidays, bonuses, and commissions so you don’t have to worry about it.
Remofirst Key Services:
Their team of legal experts and HR professionals will ensure your business operations are always compliant with changing Australian regulations, with compliance documentation accessible at all times through your secure dashboard. Their customer support team is also available 24/7 in case you need additional help. All clients also receive a dedicated account manager as their main point of contact.
On top of their EOR services, Remofirst also provides international payroll and invoice management, global benefits management (including insurance and equity plans, plus time-off management), and employee support with obtaining visas and other immigration documentation. They can even help you allocate equipment to your global employees.
Pros and cons
Pros:
- Comprehensive compliance management
- User-friendly platform
- Robust employee support
Cons:
- Dependence on third-party providers for some services
- Service availability may vary by region
Omnipresent is an employer of record (EOR) that helps businesses hire employees in over 160 countries, including Australia. With its global reach, it takes on the legal and administrative responsibilities of employing staff abroad without requiring you to set up a local entity. This means you can focus on growing your business while Omnipresent handles local compliance, payroll, and taxes, among other tasks.
Why I picked Omnipresent: When it comes to employing staff in Australia, Omnipresent offers localized expertise in Australian labor laws and compliance, ensuring your hires meet all legal requirements. You can trust them to handle employment contracts, tax registrations, and contributions to Australia’s superannuation system, which is a mandatory benefit for employees. They also manage statutory leave entitlements like long service leave, helping your company stay compliant with local regulations.
Omnipresent Key Services:
In addition to their EOR services, Omnipresent offers a range of key services that simplify global employment. They provide global payroll management, meaning you can pay all your employees, no matter where they are based, through a single platform.
Another feature worth noting is Omnipresent's benefits management, which allows you to offer competitive benefits packages tailored to local markets. They also have an easy-to-use platform where you can manage all aspects of your global team’s employment, from onboarding to payroll.
Pros and cons
Pros:
- Easy to manage payroll for global teams in one platform
- Handles tax compliance across multiple countries
- Strong local expertise in employment regulations
Cons:
- Lacks integration options
- Limited flexibility in customizing certain benefits packages
Skuad’s digital HR platform helps global employers hire, pay, and manage employees in over 160 countries, including Australia. When you hire them as your Australian EOR partner, they’ll manage the whole hiring process on your behalf, including creating employment agreements and other legal documents.
Why I picked Skuad: As part of their EOR service, Skuad offers remote onboarding and can facilitate payroll in multiple currencies. This includes the management of invoices as well as payroll automation. Skuad also offers robust compliance frameworks for local Australian employment laws, including visa and immigration processes, statutory benefits, and tax obligations.
Skuad Key Services:
Skuad's EOR services include remote employee onboarding, employee benefits, time-off tracking, and managing tax compliance. As part of their global hiring service, they’ll handle all the required documentation on your behalf, including work permits and visas for your new hires and their dependents.
Beyond that, Skuad can also help you distribute computer equipment to your new employees, and track company assets like phones and other IT devices.
Pros and cons
Pros:
- Robust HR support with localized knowledge
- Comprehensive compliance management features
- User-friendly platform
Cons:
- Deductions limited to Enterprise plan
- Platform could offer more customization options
Remote’s global HR solution offers EOR services that simplify payroll, benefits, taxes, and compliance for international workers. You can use their services to hire full-time employees or contractors and gain local market insights.
Once you’re ready to hire an employee in Australia, Remote can complete their onboarding process within 5 days.
Why I picked Remote: Remote helps companies compete for talent effectively in the global market by lending access to competitive benefits packages. They can help you offer health insurance, dental insurance, vision insurance, disability and life insurance, and mental health support services for your Australian employees. Remote also doesn’t add any markup to their benefits premiums or administration costs, making them a cost-effective choice.
Remote Key Services:
Services include global payroll processing, intellectual property and invention rights protection, and benefits packages that are tailored for the Australian market. Their software platform also covers experience reimbursement and time-off requests, which are quick and easy to approve through their online portal.
Pros and cons
Pros:
- Comprehensive compliance support
- User-friendly platform
- Strong local expertise
Cons:
- Limited customization options
- High cost per employee
Atlas HXM offers innovative companies the tools they need to compete in a global economy. As one of the largest, direct EOR service providers, Atlas HXM believes businesses should be able to employ whomever they want, wherever the talent exists.
Why I picked Atlas HXM: They're a popular choice across numerous industries, including non-profits, financial services, oil & gas, energy, life sciences, pharmaceuticals, technology, and government, and they can tailor their service offerings to your needs, whether you're a new startup, an SME, or an enterprise organization.
Atlas is committed to widening the margins of entrepreneurship and employment alike. As such, their business model helps startups and SMBs compete on the international playing field—turning commercial innovations into viable global enterprises. In doing so, Atlas brings opportunities to local economies and the people who work there.
Atlas HXM Key Services:
Services include Australian-specific compliance monitoring, employee engagement and productivity monitoring, and guidance on safety programs to minimize business risks.
Their technology platform is supported by international experts who deliver flexible services to companies wanting to expand across borders, including into Australia. Their services can help you onboard talent, manage compliance, and pay your global workforce without requiring a local entity or multiple third-party providers.
Pros and cons
Pros:
- User-friendly platform with localized support
- Comprehensive and customized onboarding
- Extensive local compliance expertise
Cons:
- Initial setup may require significant time and resources
- Limited customization options for specific HR policies
Horizons offers streamlined global HR solutions including EOR and PEO services, international payroll and recruitment, and global mobility & immigration support.
Why I picked Horizons: I included Horizons in this list because their EOR service is cost-effective compared to others, and they offer flexible contract terms. You can end your EOR relationship with them at any time without worrying about costly termination fees or other penalties.
Their Australia-based EOR services are administered by their local experts who are well-versed in Australia’s employment laws, including statutory benefits such as vacation leave, maternity leave and paternity leave. Their onboarding process for new employees in Australia is also very quick, with a minimum onboarding time of just 12 hours.
Horizons Key Services:
In addition to their standard EOR services, they offer additional niche service offerings such as tips for doing business in Australia, guides to help with global expansion, resources for strategic mergers & acquisitions, and advice on accessing new and emerging markets.
Horizons also provides cultural training and support to help employees integrate seamlessly into their new work environment. This service enhances employee satisfaction and retention by addressing cultural nuances and fostering a positive workplace culture.
Pros and cons
Pros:
- Cultural integration support
- Strong focus on compliance
- Deep knowledge of Australia labor laws
Cons:
- Service offerings may vary by region
- Dependence on local partners for some services
Native Teams is a prominent EOR service provider in Australia. Their services include payroll processing, compliance management, and HR support tailored to the Australian market.
Why I picked Native Teams: Their onboarding service is designed to be quick and efficient, allowing new hires to start contributing to the team faster. This service includes setting up employment contracts, benefit packages, and necessary training, tailored to Australian standards, with all related documents stored in a digital documentation hub for easy access.
Native Teams Key Services:
Native Teams offers comprehensive HR and compliance solutions, including a robust platform that simplifies payroll, tax compliance, and employee benefits management. Their localized expertise ensures that businesses remain compliant with Australian labor laws, making them a top choice for companies looking to hire in Australia.
Pros and cons
Pros:
- Customizable benefits packages
- Personalized HR support for employee management
- Quick and efficient onboarding process
Cons:
- Dependency on Native Teams for all HR-related functions
- Limited customization options
Velocity Global is a well-known employer of record (EOR) and professional employer organization (PEO) provider that simplifies global hiring thanks to its network of on-the-ground experts in 185+ countries, including Australia.
Why I picked Velocity Global: I included Velocity Global in this list because of their well-known reputation for global EOR services and their expertise in navigating complex regulatory environments. They stand out with their ability to handle intricate regulatory landscapes, ensuring companies can expand efficiently without legal hurdles.
Velocity Global Key Services:
Velocity Global offers comprehensive support for their EOR clients, including everything from onboarding to ongoing HR management, backed by a deep understanding of local employment laws. Key services include payroll, compliance, benefits management, employee training, and risk management for your Australian employee operations.
In addition to its EOR services, Velocity Global can also help you simplify your plans for global expansion or offer additional global immigration services in case you want to move international employees to another location.
Pros and cons
Pros:
- Strong understanding of the Australian regulatory environment
- Localized payroll management
- Efficient and thorough onboarding process
Cons:
- Pricing details are not transparent
- Limited customization options
Globalization Partners (or G-P) is a leading EOR service provider that assists companies looking to hire and manage employees in Australia. Their global HR platform streamlines international hiring, compliance, payroll, and benefits administration, ensuring a smooth onboarding process for Australian employees.
Why I picked Globalization Partners: G-P’s sophisticated global EOR platform is designed to handle complex regulatory environments, making it easy for businesses to hire and manage employees in numerous countries, including Australia.
New hires can be onboarded in days, with locally-compliant contracts according to Australian laws. Using G-P, you can also pay your EOR employees in over 180+ currencies (including cryptocurrencies) using Venmo or bank transfers.
Globalization Partners Key Services:
G-P offers automated onboarding processes, real-time expense reporting, and a dedicated support team, all of which contribute to its reputation as one of the best EOR services in Australia.
Their team includes local HR experts who understand the intricacies of Australian labor laws and cultural nuances and can also assist with global expansion plans and executing global transactions as needed.
Pros and cons
Pros:
- Easy and quick international hiring and onboarding process
- Strong compliance and risk management
- Comprehensive global employment platform
Cons:
- Dependence on the platform for all HR functions
- Limited customization options
Other Australian Employer of Record Services
Here are some other EOR service providers in Australia that didn’t make it into my top 10 shortlist, but are still worth considering:
- Mercans
For an advanced EOR management platform
- Multiplier
EOR service for quick employee onboarding
- Papaya Global
For an AI-based payroll engine
- Rippling
For managing IT requirements for EOR employees
- Oyster HR
For EOR-related educational resources for clients
- Rivermate
EOR service for managing the local social security system
- Leap29
For hiring experts in oil & gas, construction, and engineering
- Boundless
For a percentage-based EOR service model
- Safeguard Global
EOR service for NGOs and non-profit organizations
- Gloroots
EOR service for small businesses or startups
- Gibson Watts Global
EOR service for risk management expertise
- Bradford Jacobs
For managing Australian payroll taxes
- Polyglot Group
Australian EOR for a work visa sponsorship service
- NN Road
For compliantly hiring foreign expats who live in Australia
- Australia PEO
For assistance with Australian mergers and acquisitions (M&A)
Hiring in Australia: Important Details
Here are some key details to note if this is your first time hiring staff located in Australia. Your EOR provider will manage these compliance details on your behalf. However, proactively informing yourself of these details is always recommended before you invest your resources into sourcing staff based in Australia.
In Australia:
- Employment laws in Australia are set by the Fair Work Commission and the Australian Government's Fair Work Ombudsman.
- You can hire employees (full-time, part-time, casual, temporary, or fixed-term) or contractors. Your Australian EOR provider can help you determine the best hiring option depending on your needs while ensuring you avoid employee misclassification errors.
- Australia has both mandatory payroll deductions and social security contributions that must be collected, including the following:
- Pay As You Go (PAYG) Withholding Tax,
- Superannuation Guarantee Charge (SGC),
- Medicare Levy, and
- Higher Education Contribution Scheme - Higher Education Loan Program (HECS-HELP), if applicable.
- English is the official language in Australia.
- The standard working week in Australia is 38 hours per week for a 5-day work week.
- Overtime is allowed under the Fair Work Act 2009 and is calculated at 1.5 times the regular rate for the first two or three hours and double time thereafter.
- In Australia, employees are paid either bi-weekly or monthly.
- Paid vacation in Australia starts at 20 days of annual leave per year for full-time employees.
- There are 7 national public holidays plus up to 7 regional holidays that are celebrated in Australia which employees are paid for. Understanding and complying with employment norms and legal requirements surrounding Australian public holidays is one area where your EOR service will shine, managing these occurrences hassle-free on your behalf.
- National public holidays in Australia include:
- New Year's Day (January 1)
- Good Friday (variable date)
- Easter Monday (variable date)
- Anzac Day (April 25)
- Christmas Day (December 25)
- Boxing Day (December 26)
- Australia offers maternity leave and paternity leave.
- The maternity leave entitlement is up to 18 weeks, beginning up to 6 weeks before the child’s birth.
- The paternity leave entitlement for fathers is 2 weeks, to be taken within 6 weeks of the birth.
- During these leaves, employees receive salary payments under the Australian Government’s Paid Parental Leave scheme.
- Paid sick leave in Australia is 10 days per year for full-time employees. Sick time can also be accumulated according to Australia’s Fair Work Ombudsman.
- The probationary period in Australia is typically 3 to 6 months, depending on the employment contract.
- The termination terms in Australia are mandated by the Fair Work Act 2009. The required notice period ranges from 1 to 4 weeks, depending on the employee's length of service. This is another area where a local Australian EOR can provide assistance to ensure the probation period and related severance are handled correctly.
- Severance pay is offered based on the length of service, ranging from 4 to 16 weeks' pay for employees with 1 to 10 years of service, respectively.
Selection Criteria for Employer of Record Australia
Uncovering the best EOR services for this list required a deep understanding of how these services can alleviate common challenges, such as legally hiring employees abroad, managing international payments, ensuring compliance with local labor laws, providing competitive benefits, and facilitating smooth onboarding.
My approach to choosing the best EOR services is grounded in thorough research into recently published employer of record market data and an understanding of which partnerships would add the most value for organizations hoping to access the global talent market.
Here are the specific criteria I used to carefully compare the service offerings for each provider in this list:
Core Employer of Record Services (25% of total score): To be considered for inclusion in this list, each EOR provider had to offer the following basic services first:
- The corporate structure to legally and compliantly hire employees in multiple countries without a local entity
- The ability to manage international payroll and taxes in compliance with local regulations
- Assistance with offering competitive and locally compliant benefits packages
- Assistance with navigating visa and work permit processes for expatriate employees
- Robust procedures to ensure data privacy and security that comply with international standards, including GDPR and other requirements
Additional Standout Services (25% of total score): To help me narrow in on the best EOR services out of the numerous options available, I also took note of any unique or less common services, including:
- Advanced technology platforms that streamlined payroll and HR processes while still offering ease of use
- Specialized experience in hiring employees within specific new countries or key industries
- Services that enhance remote work compliance and global mobility needs
- Specialized customer support for complex immigration cases
- Assistance with international IT requirements, including managing computer equipment, software licenses, and other asset-tracking requirements
- A focus on eco-friendly and sustainable employment practices
Industry Experience (10% of total score): To evaluate the industry experience of each EOR service provider, I considered the following:
- How many years their business has operated in the EOR space
- Any industry recognitions or certifications the provider may hold in international HR and payroll
- Their depth of knowledge in local labor laws across multiple jurisdictions
- Their expertise in new markets, including how many different countries they offer local expertise in
- Evidence of a strong track record managing global expansion processes
- The combined experience and credentials of their team members, if available
Customer Onboarding (10% of total score): To get a sense of each provider's customer onboarding process, I considered the following factors:
- The availability of comprehensive onboarding materials, such as fact sheets, guides, FAQ repositories, or other training resources
- Support for integrating the EOR provider's software with existing HR systems
- Direct access to onboarding specialists, customer support, or a dedicated account manager during the setup phase
Customer Support (10% of total score): Since the EOR provider will act as your remote workers' legal employer, it's important to ensure you'll receive timely communications and top-level support. To evaluate the level of customer support each company offered, I considered the following:
- The availability of a multilingual support team that covers different time zones
- Multiple support channels, including phone, email, and live chat
- Evidence of responsiveness and effectiveness in resolving issues, as inferred from customer reviews
- The existence of dedicated account managers to provide assistance as needed
Value for Price (10% of total score): To gauge the overall value of each service, I considered the following factors:
- Transparent pricing models without hidden fees
- Comparative analysis of service offerings versus cost
- Flexibility in service packages to suit different business sizes and needs
Keep in mind that EOR services are complicated, and because of that the price tag can sometimes be high. However, the prices for their services still offer a good ROI considering the complexity of the premium-grade services you're gaining.
Customer Reviews (10% of total score): Evaluating customer reviews is the final element of my selection process, which helps me understand how happy real users are with a service. To determine this, I considered the following factors:
- Consistently high ratings across various consumer review platforms
- Specific feedback on the ease of use of the EOR services
- Testimonials highlighting exceptional customer support and problem resolution
Using this assessment framework helped me identify the employer of record services that go beyond basic requirements to offer additional value through unique services, deep industry experience, smooth onboarding, effective support, and overall value for price.
Trends in Employer of Record Services
As more businesses expand across borders, the need for efficient, compliant, and user-friendly solutions for hiring employees abroad, and managing international payments, compliance, benefits, and onboarding has never been more critical. As a result, employer of record services have continued to evolve, with an emphasis on technology-driven solutions that offer flexibility, comprehensive support, and innovative features to facilitate global operations.
Here are the most recent trends affecting EOR services and the HR software systems that are used to offer them:
- Immigration Support: There is a growing demand for assistance with immigration services like visa and work permit sponsorships, simplifying global talent acquisition processes for client companies immensely.
- Specialized Services for Diverse Needs: Several EOR providers have begun to offer IP and invention rights protection and equity incentive planning services, to cater to the specific needs of their client companies.
- Enhanced Employee Benefits Packages: There's a growing trend in EOR providers going beyond standard healthcare coverage to offer a full spread of enterprise-level medical and health benefits, stock options, and even one-time benefits like moving bonuses. This trend demonstrates an understanding of the importance of attracting and retaining top talent globally.
- AI-Backed Knowledge Bases: Some EOR providers (including Deel) are beginning to offer legally vetted knowledge bases or information wikis that use artificial intelligence to surface answers to common questions quickly. This helps customers source details on hiring within a specific country fast, without relying on human-run support systems.
As the market continues to evolve, these trends are likely to shape the future of international employment, making it easier for businesses to navigate the challenges of global expansion. For a closer look at specific EOR providers that are capitalizing on these trends, I recommend reading our in-depth reviews of Velocity Global, Skuad, and Oyster HR.
Key Employer of Record Services
An Employer of Record (EOR) simplifies hiring and compliance in Australia by managing payroll, tax obligations, and labor laws. Key services include:
- Payroll in AUD: Ensures accurate payments in compliance with the Fair Work Act 2009, covering wage rates, overtime, and record-keeping, preventing penalties from the Fair Work Ombudsman.
- Tax Compliance and Superannuation: Handles Pay As You Go (PAYG) tax and compulsory superannuation contributions to meet Australian Taxation Office (ATO) requirements.
- Labor Law Compliance: Offers expertise on Australia’s National Employment Standards (NES) and Modern Awards, ensuring compliance with local laws and alignment with broader international workforce regulations. This mitigates risks tied to both domestic and cross-border employment.
- Talent Acquisition and Background Checks: Verifies industry-specific credentials and conducts background checks, ensuring new hires meet Australian certification requirements.
- Visa and Work Permits: Assists with Temporary Skill Shortage (TSS) visas and Employer Nomination Scheme (ENS) compliance, meeting Department of Home Affairs’ regulations.
- Onboarding and Offboarding: Manages compliant onboarding and terminations in line with the Fair Work Act, reducing risks of disputes or claims.
- Benefits Administration: Provides competitive superannuation and health insurance benefits, tailored to Australia’s job market.
- HR Support: Offers ongoing consultation on Australian employment laws, workplace safety (WHS), and compliance with the Fair Work Information Statement.
- Risk Management and Insurance: Oversees workers’ compensation and maintains insurance per state regulations, mitigating legal and financial risks.
- Multi-Language Support: Facilitates communication with Australia’s diverse workforce through translation and localization of legal documents.
Partnering with an EOR in Australia ensures compliance and streamlines HR operations, allowing you to focus on your core business.
Benefits of an Employer of Record Service
EOR services are a savvy option for organizations looking to expand their global footprint without the complexities and liabilities associated with international employment laws and practices. For companies contemplating global expansion, understanding the benefits of partnering with an EOR can provide the clarity and confidence you need to move forward.
Here are several benefits you’ll gain by using an EOR service:
- Quick Market Entry: For organizations aiming to test new markets or hire talent in new countries where they have no legal presence, an EOR offers a swift and efficient solution to initiate operations, saving time and resources.
- Simplified Global Payroll: Using an EOR service simplifies the complex process of managing international payroll, including tax deductions, withholdings, and currency conversions for your employees worldwide.
- Global Compliance & Risk Mitigation: By managing compliance, an EOR service provides expertise in navigating the intricacies of employment laws, tax regulations, and insurance requirements in multiple jurisdictions, helping businesses safeguard their operations against compliance-related risks.
- Enhanced Benefits Negotiation: By leveraging their extensive networks and purchasing power, EORs can negotiate better international insurance rates and secure competitive benefit packages on your behalf, enhancing your ability to attract and retain top talent worldwide.
- Improved Cost Effectiveness: Using an EOR service is a cost-effective way for businesses to enter new markets, compared to the significant costs of establishing a new foreign entity. The latter option involves significant upfront legal fees, plus other costs related to office infrastructure, staffing, and local benefits and insurance coverage.
Understanding the benefits of using an EOR service is crucial for strategic planning and operational efficiency. As businesses look towards international markets for growth opportunities, partnering with an EOR provider offers a streamlined, cost-effective, and compliant pathway to global expansion.
Need a bit more firepower to convince your upper management to partner with an EOR service? Focusing on the costs of hiring a foreign employee and how an EOR can simplify your hiring process might just be the winning strategy you need.
Costs & Pricing for Employer of Record Services
Typically, the cost of an EOR service follows a fee per-employee, per-month pricing model, which can vary widely depending on a range of factors. This model allows for scalability and predictability in budgeting for international expansion efforts.
In general, EOR services in Australia cost between $199 to $650 per employee, per month.
Key factors that can influence the pricing of an employer of record service include:
- Geographic Location: Costs can vary significantly based on the country or countries you're hiring in. This is due to local economic conditions, labor laws, and the complexity of compliance requirements.
- Employee Seniority and Role Complexity: The level and nature of the roles being filled can also impact the monthly cost. Senior positions or roles requiring special qualifications may increase the price due to higher benefits and compensation management costs.
- Number of Employees: The total number of employees being managed can also impact the cost. In some cases, higher volumes may lead to volume discounts, making per-employee costs more economical.
- Custom Requirements: Any specific needs beyond the standard service offering may also contribute to the monthly cost. This may include customized solutions for recruitment, specialized employee onboarding, or unique compliance requirements, all of which can affect pricing.
Some EORs also operate under different pricing models, including a percentage of employee salary model, a fixed pricing model, and custom pricing models. If you'd like to delve deeper into the different factors that influence prices, my article explaining the intricacies of different EOR pricing models is a natural next step.
When considering an EOR service, it is crucial to understand how these factors impact the overall cost to ensure that the service aligns with your business's needs and budget constraints. Anticipating the specific requirements of your international expansion strategy will help you choose the most cost-effective and efficient EOR solution for your needs.
FAQs About EOR Services in Australia
If you’ve got specific questions about the requirements to hire Australian employees or how EOR services work, these answers to frequently asked questions are a good place to start:
What does an Employer of Record do?
An Employer of Record (EOR) service provider is a third-party entity that can help an organization hire a new employee in a country where it has no physical presence. It’s a useful service for businesses that are expanding internationally but don’t have physical offices established yet, or don’t ever plan to establish them. In these situations, the EOR provider becomes the legal employer of your remote staff on your behalf.
In this type of partnership, the EOR service provider deals with local employee-related matters such as managing payroll, deducting taxes, and administering the onboarding process for new employees. This allows organizations to access global talent while reducing their legal liabilities and compliance risks. This is because the EOR company assumes the legal responsibility for your international new hires on your behalf.
What are the minimum wage requirements in Australia?
As of July 1, 2024, the minimum wage in Australia is AUD 24.10 per hour, which amounts to AUD 882.80 per 38-hour work week. This rate applies to employees who are not covered by a specific award or enterprise agreement.
In addition to the national minimum wage, individual awards and agreements may set higher minimum rates of pay for specific industries or occupations. These awards also include provisions for penalty rates, overtime, allowances, and other employment conditions.
For up-to-date information and detailed specifics, you can refer to the Fair Work Ombudsman website.
Do EOR providers offer other types of global HR services?
Yes, most of the time they do. Many service providers in this space also offer professional employer organization services (also known as PEO services), as well as international payroll services.
PEO services are a way of outsourcing human resources to support your international teams. PEO companies can help you with international compliance issues, benefits administration, workers’ compensation, and other HR administrative tasks.
International payroll services support payments in multiple local currencies on your behalf, allowing you to easily pay remote employees or independent contractors within a unified payroll run. They also manage in-country compliance and tax filing requirements, making the process a lot easier on your team.
To dive even deeper into this topic, read our article covering other types of global HR services to figure out the best fit for you.
What are some of the consequences of non-compliance?
As an organization, you never want to be deemed as non-compliant in the eyes of any government body. The exact rules and regulations will vary according to the jurisdiction you’re operating in, which is one of the main benefits of using an EOR service provider.
If you don’t use an EOR and you do hire international workers, you may quickly find yourself in non-compliance. The consequences of doing so will depend on the severity of the violation, but they could include all of the following:
- Fines and penalties
- Legal actions such as lawsuits or other litigation proceedings
- Corrective measures and compliance orders
- Revocation of business licenses or operating permits
- Reputational damage if the news becomes public (loss of public trust and loss of internal employee respect)
- Increased monitoring and additional government scrutiny
Companies who fail to follow international labor laws cannot simply say they were unaware of the legalities, and hence, didn’t follow them. That’s where an EOR service can really remove a lot of potential risk and liability from the international hiring process.
To brush up on your compliance best practices, have a quick read through our 2024 HR Compliance Guide.
Are there any risks to using an Employer of Record service?
In the world of business, nothing is ever 100% risk-free, and that is true for EOR services as well. While EOR services do offer substantial advantages, here are some of the risks you should also be mindful of as you choose the right partner for you:
Financial risks:
- Hidden costs and service fees: Some EOR providers may charge additional service fees for specific tasks, such as processing documents, onboarding or offboarding employees, or providing additional HR advice.
- Mandatory benefits: Some countries require mandatory benefits for employees. In that case, the EOR will charge you for those benefits in addition to the employee salary and their service percentage, which can add up.
- Currency fluctuations: Exchange fluctuations can impact the cost of payroll and other financial transactions as the strength of a currency you’re using goes up or down.
Operational risks:
- Data security: Since you’re entrusting sensitive employee data to your EOR, you’ll want to consider the strength of their data protection practices and policies, including their incident response plans, IT penetration testing, and data management certifications, such as ISO 27001.
Strategic risks:
- Loss of control: You will need to relinquish some degree of control over the workforce management processes of your EOR employees, which may impact your organization’s strategic decision-making capabilities.
- Brand reputation: Any negative actions, incidents, or practices of your chosen EOR can directly impact your organization’s brand reputation and create a negative employee experience if not handled properly.
For a deeper dive into this topic, read our comprehensive guide to EOR risks, including strategies to mitigate each potential issue upfront.
Gain Access to the Best Talent with an EOR in Australia
If you made it this far, I hope you have a better sense of how EOR services can simplify the process of hiring Australian employees. They're truly a valuable resource, whether you're an enterprise organization looking to snap up the top talent in Australia, or a small business or startup trying to break into the Australian talent marketplace without launching your own entity.
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