Background Checks

The Federal Labor Law does not prevent employers from conducting background checks through third parties. In such cases, employers must comply with anti-discrimination and data privacy obligations under applicable laws in Australia.

Verification and New Hire Reporting

Employers must verify that the employee is legally allowed to work in Australia. While Australia does not have a centralized federal new hire reporting system like some countries, employers must ensure accurate reporting to the Australian Taxation Office (ATO) and superannuation funds through payroll systems.

Onboarding Process & Documentation

Employers must gather essential documents from new hires, including:

• Tax File Number (TFN) declaration
• Banking details for payroll
• Superannuation fund information
• Proof of work rights, such as a passport or visa
• Identification documents for verification

Providing Employee Rights and Obligations

Employers are legally required to provide:

• A Fair Work Information Statement (FWIS) to all new employees, outlining their rights under the National Employment Standards (NES)
• A Casual Employment Information Statement (CEIS) if hiring casual workers

Retirement

The Age Pension is the main government benefit for retirees. To be eligible, the employee generally needs to be:

• Age 67 or older (depending on your birth date)
• An Australian resident for at least 10 years

The amount they receive depends on income and assets tests. As of now, the maximum Age Pension rates are:

• Singles: $1,051.30 per fortnight
• Couples: $1,585.00 per fortnight combined

Additional benefits for Age Pension recipients include:

• Pensioner Concession Card: Discounts on utilities, medical bills, and public transport
• Work Bonus: Allows them to earn more without reducing your pension

Superannuation is a compulsory retirement savings system where employers contribute a percentage of their earnings into a super fund. The employee can also make voluntary contributions. Upon retirement, they can access these funds as a lump sum or regular payments.

Healthcare

Medicare is Australia’s universal healthcare system, providing free or subsidized access to essential medical services. It covers:

• Medical Services: Visits to GPs and specialists
• Public Hospitals: Free treatment in public hospitals
• Pharmaceutical Benefits Scheme (PBS): Subsidizes prescription medicines

Private Health Insurance
While Medicare covers many services, private health insurance offers additional benefits such as:

• Choice of Doctor and Hospital: More flexibility in choosing healthcare providers
• Shorter Waiting Times: Reduced waiting periods for elective surgeries
• Extras Cover: Includes services like dental, optical, and physiotherapy

Social Security

Vensure will share updated information on Social Security Codes as guidance becomes available.

Employment Contract Details

Contract Requirements:

• Include details such as job title, salary (must be in Australian Dollar currency (AUD)), and work hours consistent with the Fair Work Act.
• Ensure all contractual terms comply with the National Employment Standards.

Probation Period

The period is on average six months, however, if the employer has 15 employees this can be extended to 12 months. Employees dismissed in the first 6 months of employment (or 12 months of employment if employed by a small business) cannot make a claim of “unfair dismissal” to the Fair Work Commission.

Independent Contractors

When determining whether a worker is an employee with the following factors to be considered:

• the totality of the relationship;
• the terms of the contract governing the relationship; and
• other factors relating to the totality of the relationship including, but not limited to, how the contract is performed in practice.

Paid Time Off

Full-time employees are entitled to 4 weeks of paid leave per year, while employees who work in shifts receive 5 weeks.

Public Holidays

• New Year’s Day
• Australia Day
• Good Friday
• Easter Saturday – National (except WA)
• Easter Sunday
• Easter Monday
• Anzac Day
• King’s Birthday – National (except WA & QLD)
• Christmas Day
• Boxing Day – National (except SA)

Bereavement

Employees are entitled to 2 days’ paid leave.

Maternity Leave

Employees are entitled to 12 months of unpaid leave after working for 12 months with their employer. Paid leave is only determined by the employer. However, Federal Government scheme provides payment for 18 weeks of maternity leave.

Paternity Leave

In a couple, a minimum number of days is reserved for the partner (10 days currently, rising to 20 days by July 1, 2026).

Parental Leave

Parental leave (includes maternity and paternity leave) is an unpaid leave that lasts for 12 months, and it is possible to request an additional 12 months from the employer. Employees must have at least 12 months of employment.

Sick Leave

• Full-time employees receive 10 days of paid personal/carer’s leave per year.
• Part-time employees receive a pro-rata amount.
• Casual employees are not entitled to paid sick leave but can take unpaid carer’s leave.
• Leave accrues progressively throughout the year and carries over if unused.
• Can be used when the employee is ill or injured, or to care for an immediate family or household member.
• Employers can request medical certificates or statutory declarations as proof.

Termination Requirements

Employers must give employees written notice if they want to end their employment.

Notice Period

The notice period is determined as follows:

• Less than 1 year of employment: 1 weeks’ notice
• 1-3 years of employment: 2 weeks’ notice
• 3-5 years of employment: 3 weeks’ notice
• 5+ years of employment: 4 weeks’ notice

If the employee is over the age of 45 and has been employed for over 2 years, they are entitled to an additional week.

Severance Pay

Severance pay is calculated with the pay rate given for ordinary hours worked as follows:

• At least 1 year but less than 2 years: 4 weeks’ severance pay
• At least 2 years but less than 3 years: 6 weeks’ severance pay
• At least 3 years but less than 4 years: 7 weeks’ severance pay
• At least 4 years but less than 5 years: 8 weeks’ severance pay
• At least 5 years but less than 6 years: 10 weeks’ severance pay
• At least 6 years but less than 7 years: 11 weeks’ severance pay
• At least 7 years but less than 8 years: 13 weeks’ severance pay
• At least 8 years but less than 9 years: 14 weeks’ severance pay
• At least 9 years but less than 10 years: 16 weeks’ severance pay
• At least 10 years: 12 weeks’ severance pay

Anti-Discrimination Practices

Accommodations

Under the Disability Discrimination Act 1992 (Cth), an adjustment is considered reasonable unless the employer can prove it would cause “unjustifiable hardship.” To determine if a hardship is unjustifiable, several factors must be considered:

• Benefit or Detriment: The nature of the benefit or detriment likely to affect any person involved.
• Effect of Disability: The impact of disability on any person concerned.
• Financial Circumstances: The employer’s financial situation and the estimated cost of the adjustment.
• Assistance Availability: The availability of financial and other assistance to the employer.

Non-Discrimination

All individuals are protected from workplace discrimination based on race, gender, age, sexual orientation, or disability. Violations can result in severe penalties.

Harassment

Under the Sex Discrimination Act 1984 (Cth), sexual harassment occurs when:

• There is an unwelcome sexual advance.
• An unwelcome request for sexual favors; or
• Other unwelcome conduct of a sexual nature.

Victimization

Anti-discrimination legislation generally prohibits victimization of individuals who:

• Bring a complaint or intend to bring a complaint; or
• Make allegations that someone has engaged in unlawful conduct prohibited by the legislation.

Workplace Safety Standards

Workplace safety laws are designed to ensure safe and healthy working conditions. These laws are governed by the Work Health and Safety (WHS) Act and Regulations, which are implemented by each state and territory. The key agencies include:

• Safe Work Australia: Responsible for developing and evaluating the model WHS laws, which include the WHS Act, Regulations, and Codes of Practice.
• State and Territory WHS Regulators: These regulators enforce WHS laws, inspect workplaces, and provide advice. Examples include WorkSafe Victoria, SafeWork NSW, and WorkSafe Queensland.

Workers’ Compensation

Each state and territory have its own workers’ compensation scheme, and the main agencies involved include:

• Safe Work Australia: This national body develops policies to improve workers’ compensation and promote consistency across Australia.
• Fair Work Ombudsman: Provides information and guidance on workers’ compensation but does not administer the schemes.
• State and Territory Regulators: Each region has its own regulator, such as WorkSafe Victoria, WorkCover Queensland, and WorkSafe NSW.
• Weekly Overtime: Pay 1.5x for hours beyond 40 in a week.

Labor Law Sanctions

Fair Work Act: Employers must comply with the Fair Work Act, which covers minimum wages, working conditions, and employee rights.

Work Health and Safety (WHS) Laws: Employers must ensure a safe working environment and comply with WHS regulations.

Anti-Discrimination Laws: Employers must prevent discrimination and harassment in the workplace.

Migration Act: Employers must comply with regulations regarding the employment of foreign workers and ensure they have the appropriate visas.