Onboarding Employees in Australia While Abroad: A Step-by-Step Guide

Expanding your team internationally offers exciting growth opportunities—but when it comes to onboarding employees in a country like Australia while managing operations from abroad, the process can become complex quickly. Australia has a highly regulated labor market, with strict laws governing employee entitlements, tax reporting, payroll, and workplace rights.

For companies looking to hire remote employees in Australia without setting up a legal entity, using an Employer of Record (EOR) can streamline the process and ensure compliance. In this guide, we’ll walk you through a step-by-step approach to onboarding employees in Australia while abroad and explain how solutions like PEO, payroll outsourcing, and international payroll services can support your growth goals.

Why Hire Employees in Australia?

Australia is a stable, business-friendly economy with a skilled, English-speaking workforce. It’s consistently ranked high for innovation, ease of doing business, and quality of life. Here’s why more companies are turning to Australia as a hiring destination:

• Highly educated talent pool
  
• Strong legal protections for employees
  
• Strategic time zone for APAC collaboration
  
• Transparent regulatory environment
  
• High digital connectivity for remote work
  

Whether you’re building a local team to service the Australian market or hiring remote employees for global roles, Australia offers significant advantages.

Challenges of Onboarding Employees in Australia While Abroad

Hiring in Australia from overseas isn’t as simple as extending an offer letter. There are multiple legal and operational factors to manage:

• Australian employment laws are governed by the Fair Work Act
  
• Employers must provide minimum entitlements such as paid leave, notice periods, and superannuation
  
• Payroll taxes, income tax withholding, and reporting are mandatory
  
• Employers need to manage tax file numbers, Superannuation Guarantee contributions, and insurance
  

Navigating all this without an Australian legal entity requires support from local experts or a Professional Employer Organization (PEO) or Employer of Record (EOR). These services fall under the broader umbrella of global employment solutions.

Step-by-Step Guide to Onboarding Employees in Australia Remotely

Step 1: Decide on Your Employment Model

You have two main options when hiring in Australia without a local entity:

1. Employer of Record (EOR): The EOR becomes the legal employer of your staff in Australia. They handle compliance, payroll, and HR operations on your behalf, while you manage the employees’ daily tasks.
   
2. PEO (Professional Employer Organization): A PEO typically supports HR, benefits, and payroll outsourcing, but you must already have a local business entity in Australia to use this service.
   

For companies without an Australian entity, Employer of Record is the best option.

Step 2: Define the Role and Responsibilities

Before onboarding, clearly outline:

• Job title and description
  
• Working hours (Australian law mandates maximum weekly hours and overtime pay)
  
• Salary (including superannuation contributions)
  
• Work location (remote, hybrid, or on-site)
  
• Reporting structure and KPIs
  

Be aware of minimum wage laws, award classifications, and role-specific entitlements which are strictly enforced in Australia.

Step 3: Choose a Trusted EOR or Global Partner

A reliable Employer of Record like Team APAC will:

• Legally employ the worker in Australia
  
• Ensure Fair Work compliance
  
• Draft a compliant employment contract
  
• Manage tax registration and deductions
  
• Administer international payroll services
  

Look for a provider with:

• Local expertise in Australian labor law
  
• A history of supporting foreign businesses
  
• Transparent pricing
  
• Comprehensive employee support
  

Step 4: Draft and Issue an Australian-Compliant Employment Contract

Employment contracts in Australia must include:

• Job title and duties
  
• Compensation and superannuation details
  
• Leave entitlements
  
• Termination and notice period clauses
  
• Dispute resolution policies
  

Your EOR will prepare a compliant, bilingual (if needed) contract and send it to the employee for review and signature.

Step 5: Register for Payroll, Taxes, and Superannuation

If using an EOR, they’ll handle this for you. But it’s essential to understand what’s involved:

• Tax File Number (TFN): Each employee needs a TFN. Your EOR will ensure it’s registered.
  
• PAYG (Pay As You Go): Employers must withhold income tax.
  
• Superannuation Guarantee: Employers are required to contribute a percentage (currently 11%) of an employee’s earnings to a registered super fund.
  
• WorkCover Insurance: Mandatory insurance covering workplace injuries.
  

This is where payroll outsourcing through a provider with deep Australian experience becomes invaluable.

Step 6: Set Up Payroll and Employee Benefits

With all registrations complete, your EOR will:

• Manage payroll calculations and tax withholdings
  
• Deliver payslips and pay employees in AUD
  
• Make superannuation contributions
  
• Report to the Australian Taxation Office (ATO)
  

Benefits administration is also part of the EOR’s service. In addition to mandated benefits, they may help you offer perks like private health coverage, wellness stipends, or learning & development support.

Step 7: Begin Virtual Onboarding

With legal and payroll compliance handled, it’s time to focus on a smooth onboarding experience. Steps include:

• Sharing company handbooks and values
  
• Introducing tools (Slack, Google Workspace, Zoom, etc.)
  
• Setting up IT access and credentials
  
• Scheduling check-ins and role training
  
• Clarifying communication and performance expectations
  

A positive remote onboarding process goes a long way toward ensuring employee satisfaction and retention.

Step 8: Maintain Ongoing Compliance and HR Support

Employment laws in Australia evolve regularly. Your EOR partner should stay ahead of these changes and ensure:

• Compliance with the National Employment Standards (NES)
  
• Leave tracking and entitlements
  
• Accurate record keeping
  
• Annual performance evaluations or contract renewals
  
• Guidance on lawful terminations and offboarding
  

Your EOR’s local HR team will also provide employee support—an essential component of a global-ready workforce.

Why Use an EOR Instead of Setting Up a Local Entity?

Creating a legal business entity in Australia can take months and require significant financial and legal investment. Using an Employer of Record allows you to bypass these hurdles and still access world-class talent.

How Team APAC Delivers Seamless EOR Services in Australia

At Team APAC, we provide fully-managed EOR services in Australia to help international companies hire remote employees quickly, compliantly, and efficiently.

Our global employment solutions include:

• Drafting compliant contracts
  
• End-to-end payroll outsourcing
  
• Tax and superannuation management
  
• Benefits and WorkCover insurance setup
  
• Ongoing HR support and advisory
  
• Termination and transition assistance
  

With a local presence and a global mindset, we make international payroll services and onboarding in Australia simple—no entity required.

Final Thoughts: Focus on Growth, Not Paperwork

Expanding your global workforce is exciting, but hiring abroad—especially in highly regulated countries like Australia—requires expert support. Partnering with an Employer of Record or Professional Employer Organization ensures you stay compliant while giving employees the excellent onboarding experience they deserve.

Whether you’re hiring one software engineer in Sydney or a full marketing team in Melbourne, the right EOR partner will help you unlock Australia’s talent without setting up shop.

Ready to Onboard Employees in Australia Remotely?

Let Team APAC handle the compliance, payroll, and HR—so you can focus on growing your business.

Contact us for a free consultation or to get started with our trusted EOR solutions.