Employment Law Regime
People who work in Australia are subject to Australian employment law which provides workers with rights and protections under legislation like the Fair Work Act 2009: This Act is in place to ensure that within the workplace, healthy working relationships exist. This includes making sure that employers give their employees basic rights such as a minimum wage, paid leave periods, compensation where applicable, and a safe working environment.
In addition, the Work Health and Safety Act 2011 was passed to enforce rules surrounding workers’ health, safety, and wellbeing in the workplace, particularly for those who work in notoriously dangerous industries. The Work Health and Safety Act 2011 is effective in the Australian Capital Territory, Northern Territory, Queensland, New South Wales, South Australia, and Tasmania.
Employment Classification
Permanent Employment
In Australia, permanent employees are employed on an ongoing basis until the employer or employee ends the employment relationship. . Permanent employees can be full-time or part-time depending on their working hours. Permanent employees are entitled to paid leave days, right to notice period and redundancy pay, option for flexible working, maximum working hours.
Fixed-Term or Specific-Purpose Contracts
In Australia, fixed-term contract employees are hired for a specific period of time or task. Fixed-term contract employees can usually work full-time or part-time.
Full-time or part-time fixed-term employees are generally entitled to the same wages, penalties, and leave as permanent employees. An award or registered agreement may provide additional terms and conditions for a fixed-term employee.
Temporary Employment
In Australia, casual employees are temporary employees. A person is a casual employee if they accept a job offer from an employer knowing that there is no firm advance commitment to ongoing work with an agreed pattern of work. They can end employment without notice unless notice is required by a registered agreement, award, or employment contract. Regular and systematic casual employees are also protected from unfair dismissal.
Casual employees are entitled to a higher hourly pay rate than equivalent full-time or part-time employees (“casual loading”) since they are not entitled to benefits such as sick or annual leave.
Casual employees who have worked for their employer for 12 months and last 6 months with regular working hours need to be offered the option to convert to permanent employment, full-time or part-time.
Holiday’s in Australia
Public holidays in Australia may vary, depending on each state and territory’s employment law.
Australian Capital Territory current statutory holidays:
- New Year’s Day – January 1
- Australia Day – January 26
- Canberra Day – March 9
- Good Friday (Friday before Easter Sunday) – the date is subject to change every year
- Easter Saturday, Easter Sunday and Easter Monday – dates are subject to change every year
- Anzac Day – April 25
- Reconciliation Day – the date is subject to change every year
- Queen’s Birthday – June 8
- Labour Day – October 5
- Christmas Day – December 25
- Boxing Day – December 26 (December 28 in some other states)
Termination of Employment
Notice Period
- One week notice for one year or less of service
- Two weeks’ notice for service between one and three years
- Three weeks’ notice for service between three and five years
- Four weeks’ notice for more than five years of service
Employees over 45 years old, who have worked for an employer for at least two years get an extra week of notice.
A contract may generally be summarily terminated if the employee is fired because of serious misconduct (e.g., engaging in theft, fraud or assault).
Severance Benefits
In Australia, there is no provision for severance pay except for redundancy. The amount of redundancy pay varies between four and 16 weeks’ salary, depending on the length of an employee’s continuous service. The obligation to issue severance pay does not apply to small business employers (employers with fewer than 15 employees).
Casual employees, apprentices and those dismissed for gross misconduct are not entitled to redundancy pay.
Superannuation
Superannuation, or ‘super’, is money put aside by your employer over your working life for you to live on when you retire from work. For most people, your employer pays money – ‘contributions’ – into a super account for you. This is called the ‘super guarantee’. They pay these contributions on top of your salary and wages. Most people can choose the super fund they want their contributions paid into. If you’re eligible, your employer must give you a Superannuation standard choice form within 28 days of the day you started working for them, so you can make that choice in writing.
