For businesses keen to enter the Australian market without going through the formal incorporation of a legal entity in the country, hiring staff through an employer of record (EOR) can be the ideal solution. Because by hiring through an EOR in Australia, you can get staff quickly, while also developing greater familiarity with the market ahead of any potential deeper commercial involvement.
If you are looking to invest without the need to register a company in Australia, it is worth knowing that an EOR can also be known as a professional employer organization (PEO) or a PEO payroll company.
Australia is a leading country in the international market, ranking number 14 out of 190 countries in the World Bank’s Doing Business 2020 report. With a gross domestic product (GDP) of $1.39 trillion (all figures in USD) and foreign direct investment inflows (FDI) of $40 billion in 2019, Australia’s strong economy and business- and trade-friendly policies make it a highly attractive country for doing business.
Australia has experienced more than two decades of economic expansion and is one of the wealthiest nations in the Asia–Pacific region. In a sign of its commitment to free trade, it has also reached free trade agreements (FTAs) with the likes of the Association of Southeast Asian Nations (ASEAN), China, Japan, South Korea, and the United States. The South Pacific country is also a world leader in technology development, finance, mining, and agriculture.
If you are interested in entering this massive and lucrative market, read on to find out how an EOR in Australia could offer the best solution to your business needs. Or you could go ahead and contact us now.
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What will an EOR in Australia do for you?
An EOR in Australia will hire staff on your behalf, meaning that you will be able to quickly count on a workforce without having to go through company or branch incorporation. While the EOR will be the official employer of those staff, you or your company will oversee day-to-day managerial control over their workload and tasks.
As such, you will have access to an established recruitment network able to find suitably qualified local staff, while the EOR will also handle many of the time-consuming and laborious tasks associated with employee onboarding and off-boarding, while also making sure that all statutory obligations with relation to salaries and benefits are met. That includes the likes of holiday pay, sick and maternity leave, and all other wage-based entitlements.
An EOR in Australia will also be able to manage many labor law-related issues that may arise, as well as providing ongoing advice regarding your business and recruitment choices.
Australian labor laws – how can an EOR help?
With extensive knowledge of local regulations, an EOR in Australia will take responsibility for meeting all legal requirements related to your employees. Australian labor laws set out the terms of employment, so following these rules is essential to avoid any legal complications. Note that these laws will often change over time, therefore, the use of an EOR will avoid the necessity of you staying on top of any legislative changes.
The Australian government outlines the main employee entitlements in their National Employment Standards (NES), with the entitlements including:
- Public holidays
- Annual paid leave
- Sick leave
- Maternity/paternity leave
- Maximum work hours per week
- Overtime and breaks
- Workplace flexibility
- Termination notice and final pay
- Protection in the workplace
An EOR in Australia: key benefits
An EOR in Australia can be an effective choice when solving some of the challenges commonly faced by foreign companies when entering the Australian market. Some of the key benefits of hiring local staff through an EOR include:
- Setup speed: An EOR will already be set up in a country as a recognized legal entity. Therefore, using their services means you can instantly access the market without setting up your own entity.
- Cost reduction: While hiring an EOR comes with a service fee, that cost will likely be significantly lower than forming your own legal entity.
- Protection against risk: An EOR will take professional care of the rights of your employees, reducing your need for input, and eliminating your chance of legal complications.
- Company development: The time and money saved by an EOR service can be focused on the development of your business.
- Immigration advice: An EOR will help you to successfully meet the requirements to obtain work visas for foreign workers.
- Market experience: Hiring through an EOR in Australia will give you the opportunity to get to know the market, providing you with the opportunity to decide whether to expand your involvement to a degree that warrants branch or company formation.
Biz Latin Hub can be your EOR in Australia
At Biz Latin Hub, our team of multilingual legal, accounting, and recruitment specialists is equipped to deliver excellence and help you find the most suitable employees to ensure the success of your commercial operations in Australia. With our full suite of EOR and other back-office services, we are your single point of contact to successfully incorporate your business in one of the key markets of Asia-Pacific.
Learn more about our team and expert authors.