Employment laws in Australia: a complete guide for employers

Employment laws in Australia establish minimum standards for wages, working hours, leave, termination and workplace safety. The Fair Work Act 2009 provides the main national framework, supported by modern awards, enterprise agreements and state-specific legislation. Employers must identify which rules apply to each employee before setting their employment conditions.

Understanding the Fair Work Act 2009

The Fair Work Act 2009 governs employment relationships for most Australian employees.

It establishes the National Employment Standards (NES), which set minimum employment entitlements.

Modern awards provide additional minimum conditions for employees in particular industries and occupations.

Enterprise agreements can also establish employment conditions for covered employees.

An employment contract cannot remove minimum statutory entitlements.

Employment contracts and worker classification

Employers should establish written employment terms covering remuneration, working hours, leave and termination.

Worker classification is especially important when engaging casual employees and independent contractors.

An incorrectly classified worker may be entitled to wages, leave or other benefits that the business has failed to provide.

Australia's casual employment rules include an employee choice pathway, allowing eligible casual workers to notify their employer that they wish to become permanent employees.

Eligibility and timing depend partly on whether the employer qualifies as a small business.

Minimum wages and working conditions

National minimum wage

From 1 July 2026, Australia's National Minimum Wage increased to A$26.44 per hour, equivalent to A$1,004.90 per week for a 38-hour working week.

• The National Minimum Wage generally applies to adult employees who are not covered by a modern award or registered enterprise agreement.
• Many employees are entitled to different minimum wages under their applicable award.
• Award minimum wages also increased by 4.75% from July 2026, subject to the Fair Work Commission's applicable minimum-rate arrangements.
• Employers must calculate pay using the relevant classification, award provisions and employment circumstances.

For example, a hospitality employee working weekends may be entitled to penalty rates beyond their ordinary hourly pay.

Working hours and overtime

Under the NES, full-time employees generally have a maximum ordinary working week of 38 hours, plus reasonable additional hours.

Whether additional hours are reasonable depends on factors including the employee's circumstances, operational needs and compensation.

Overtime and penalty payments depend on the applicable award or agreement.

Right to disconnect

Australia's right to disconnect allows employees to refuse to monitor, read or respond to work-related contact outside their working hours unless the refusal is unreasonable.

The right has applied to employees of businesses with 15 or more employees since August 2024 and to small business employees since August 2025.

Employers should establish clear arrangements for after-hours contact, particularly for staff with on-call responsibilities.

Annual leave and employee benefits

Annual and personal leave

Full-time and part-time employees generally receive four weeks of paid annual leave each year.

Certain shiftworkers qualify for an additional week.

Full-time employees also generally receive ten days of paid personal or carer's leave annually, with pro-rata entitlements for part-time employees.

Employees are entitled to other types of leave under the NES, including compassionate leave and community service leave.

All employees, including eligible casual workers, have access to ten days of paid family and domestic violence leave each year.

Parental leave

Eligible employees have access to unpaid parental leave under the NES.

Government-funded Parental Leave Pay is available separately to qualifying families.

For children born or adopted from 1 July 2026, eligible families can receive up to 26 weeks of Government Parental Leave Pay to share.

Employers should account for both the employee's workplace leave entitlements and any government payment arrangements.

Compulsory superannuation contributions

Australia's superannuation guarantee system requires employers to make retirement savings contributions for eligible employees.

The superannuation guarantee rate is 12%.

From 1 July 2026, the Payday Super reforms require employers to pay superannuation alongside employee wages.

Contributions generally need to reach the employee's superannuation fund within seven business days of payday, subject to applicable exceptions.

Employers should review payroll systems and payment schedules to meet these requirements.

Workplace health, safety and discrimination

Australian employers have duties under applicable work health and safety legislation to provide safe working environments.

These obligations include identifying workplace hazards and managing risks to employees' physical and psychological health.

Anti-discrimination laws also protect employees and job applicants from unlawful discrimination.

Relevant legislation includes the Sex Discrimination Act 1984, Disability Discrimination Act 1992 and other federal and state laws.

Employers must assess applicants fairly and avoid recruitment practices that unlawfully disadvantage people because of protected characteristics.

Termination of employment

The Fair Work Act establishes protections against unfair dismissal and unlawful adverse action.

Employees generally need to complete a minimum employment period before becoming eligible to bring an unfair dismissal claim.

This is usually six months for employees of businesses with 15 or more employees and 12 months for small business employees, subject to the applicable eligibility rules.

Employers must also follow statutory notice requirements and provide redundancy entitlements where applicable.

Before terminating employment, employers should document performance or conduct concerns, provide appropriate opportunities to respond and follow a fair process.

Australian law also provides significant penalties for certain wage underpayment offences, including intentional underpayment.

Maintaining accurate employment and payroll records is therefore essential.

Background checks and employee privacy

Employers commonly use background checks to verify identity, employment history, qualifications and relevant criminal records.

Some roles require additional checks.

For example, positions involving children may require a Working with Children Check under the relevant state or territory scheme.

Employers should also confirm that workers hold the appropriate permission to work in Australia.

Our guide to police checks, right to work and Working with Children Checks explains the considerations for building a screening policy.

The Privacy Act 1988 and Australian Privacy Principles can also apply to candidate information.

The employee records exemption available to certain private-sector employers does not generally protect the collection and handling of information about unsuccessful job applicants.

Employers should only request relevant information, obtain necessary authorisation and secure screening records.

Veremark provides background screening services in Australia, including criminal-record checks, employment verification and identity screening.

Maintaining compliance with Australian employment requirements

Following employment laws in Australia requires employers to understand the relationship between the NES, awards, enterprise agreements and employment contracts.

An employee's statutory entitlement may differ depending on their occupation, working arrangements or location.

Review remuneration regularly, especially following the Fair Work Commission's annual wage decisions.

For further information on statutory pay and entitlements, see our guide to employee benefits and compensation in Australia.

FAQs

What is the main employment law in Australia?

The Fair Work Act 2009 establishes the principal national framework, including the National Employment Standards.

What is the minimum wage in Australia in 2026?

From 1 July 2026, the National Minimum Wage is A$26.44 per hour. Award and agreement-covered employees may have different minimum rates.

Are background checks mandatory for Australian employers?

Requirements vary by role and industry. Some positions require criminal-record, right to work or Working with Children Checks, while employers may choose other lawful checks based on job responsibilities.

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