Navigating the Process of Hiring Employees in Australia

Hiring employees in Australia involves several essential steps and considerations. You must address specific requirements before hiring unless you partner with an Employer of Record (EOR). While an EOR streamlines the hiring process, assuming the role of the Employer of Record yourself entails several key elements:

1. Establish a Branch or Subsidiary:

  • Legally establishing your business entity in Australia is a fundamental requirement. You can create a foreign branch closely linked to your parent company, which may not be taxable in Australia. However, forming a subsidiary and incorporating with the Australian Securities and Investments Commission (ASIC) is necessary for long-term operations in Australia. Remember that an Australian subsidiary must have at least one director residing in the country.

2. Register for GST and PAYG:

  • To prepare for payroll processing for your new employees, your company must register for PAYG (Pay As You Go) withholding tax. You must also register for the Goods and Services Tax (GST).

3. Establish an Australian Bank Account:

  • Opening bank accounts within the country facilitates payroll management and overall business operations. Branch offices may have the option to share finances with the parent company.

4. Licensing and Permits:

  • You might need to obtain licenses or permits depending on the Australian state, industry, and business activities.

The Hiring Process in Australia

The hiring process in Australia closely mirrors the typical procedures in other countries, comprising five primary steps: job advertising, application evaluation, candidate interviews, job offers, and employee onboarding.

1. Advertise Job Vacancies:

  • Begin by crafting detailed position descriptions for your Australian job vacancies. Include essential information such as candidate qualities, job responsibilities, and reporting structures. Post job advertisements on online job boards that are visible to Australian job seekers. In addition to general job boards, consider industry-specific platforms for targeted advertising.

2. Evaluate Applications:

  • As applications flow in, assess them to identify qualified candidates. This involves eliminating unqualified applicants and identifying those best suited for the position. You may include skills tests or questionnaires in the application process for further insights into candidates' qualifications.
  • Australian resumes, often called CVs (Curriculum Vitae), typically span two to three pages. They provide information on the candidate's work experience, education, and skills, sometimes including personal interests.

3. Interview Candidates:

  • Shortlisted candidates should undergo interviews. Options include sending your hiring team to Australia, conducting in-person interviews in your Australian office (if established), or opting for virtual consultations. Virtual interviews, particularly phone or video interviews, are becoming increasingly common and are especially useful for remote hiring in Australia.
  • When conducting virtual interviews, consider time zone differences. Australia has five mainland time zones, which can pose scheduling challenges for businesses in distant locations.

4. Extend Job Offers:

  • Contact selected candidates to offer them positions within your company. Allow them to ask questions and negotiate terms, including salary, if necessary. Prepare employment contracts while ensuring compliance with relevant awards and legal requirements. If necessary, develop enterprise agreements with your new employees, ensuring they align with award standards.

5. Onboard New Employees:

  • The final step involves onboarding your new employees. Facilitate the completion of essential paperwork for payroll setup and inclusion in your internal systems. If partnering with an EOR, they will manage this process, but you may still need to address certain aspects, such as job-specific training.

Navigating the hiring process in Australia requires careful attention to legal and procedural requirements. You can successfully build your team Down Under by adhering to these steps and considerations.