Australian Eastern Standard Time (AEST -UTC+10), Australian Central Standard Time (ACST-UTC+9.5), Australian Western Standard Time (AWST-UTC+8)

Undoubtedly, payroll is a critical process for any organization. The pay cycle in Australia refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

In Australia, employees are paid weekly, bi-monthly, or monthly. There are no legal requirements that govern the pay schedule. However, in Australia, it is common to pay employees by the following schedule:

Monthly - By 28-30 of the month, Bi-Weekly - Every second week on any agreed day (Usually Wednesday or Thursday), Bi-Monthly - Every 15th and 30th of the month.

13th month pay cycle is not mandatory in Australia.

The Fair Work Commission (FWC) of Australia has announced a 3.75% increase in the national minimum wage, set to take effect from July 1, 2024. This decision aims to support the Reserve Bank's efforts to keep inflation within the 2-3% target range by 2025.

Key Details:

New Rate: The new minimum weekly rate is A$915.90 equivalent to A$24.10 per hour. This represents a moderate increase compared to the 5.75% rise observed in the previous year.

Affected Workers: Approximately 2.6 million workers, constituting 20.7% of the labor force, will be impacted by this change.

Minimum employment conditions are outlined in the Fair Work Act, 2009, and Industrial Awards. These awards are either industry-based or occupation-based. Employees covered by such awards are generally paid overtime. With effect from March 23, 2023, it was deemed that employees who work completely or mainly in a managerial role are not covered by the PE Award.

With effect from September 16, 2023, changes were made to the PE Award's overtime and hours of work clauses to correct disparities between full-time and part-time/casual employees.

Most awards provide for overtime to be paid for time worked for more than 38 hours per week or more than 10 hours per day. If an employee works on a weekend or a public holiday, overtime or a penalty is generally paid to award-based employees.

If an employee is not an award employee, they are "Award-Free." These employees do not have a statutory right to be paid overtime. However, such employees have the right to work only 38 reasonable additional hours per week.

There is no formal definition of "reasonable additional hours." These employees are generally expected to work overtime depending on their job requirements.

The new overtime, time off in lieu, penalty rates, and record-keeping rules do not apply when an employee is legally entitled to a yearly wage that exceeds the minimum award amount by at least 25%. 

New changes for employees who do not earn an annual salary that exceeds the minimum entitlements under the PE Award by at least 25%.

Records may be held either physically or electronically.

Employment-related records, including tax records, generally must be kept for a minimum of seven years. Documents related to SG and FBT (fringe benefit tax) must be kept for seven years.

Tax records in Australia's territories generally must be kept for five years; however, the Australian Capital Territory requires that they be kept for seven years.

Certain employment records must be retained for seven years.

According to Australia's Fair Work Commission, employers must keep the following employee records for seven years:

• Name of the employer and name of the employee
• Australian Business Number (abbreviated as ABN), if any, of the employer
• Employee’s date of joining
• Employee’s employment type: full-time or part-time worker; whether permanent, temporary or casual
• Employee’s pay rate, including gross and net pay and deductions made
• bonuses, incentive payments, penalty rates, or entitlements
• Number of overtime hours worked
• hours worked if the employee works in casual or irregular part-time hours and is guaranteed pay in accordance to the time worked
• a copy of the written agreement pertaining to the employee's work hours
• a copy of any individual flexibility arrangements and a copy of separation/ termination, as applicable

January 1: New Year's Day
January 26: Australia Day
April 7: Good Friday
April 10: Easter Monday
April 25: Anzac Day
December 25: Christmas Day
December 26: Boxing Day

The remaining holidays differ from state to state.

Sick leave in Australia is also known as personal leave or carer's leave. Employees are entitled to 10 days of paid leave per year, which can be used if the employee is sick or if they need to care for a family member.

While some employers provide paid maternity leave, mothers are entitled to 12 months of unpaid maternity leave after working for 12 months with the same employer.

In addition, employees can apply to the Federal Government scheme, which provides payment for 18 weeks of maternity leave.

Fathers are entitled to five days of unpaid leave at the time of the birth or adoption of a child. Employees can also apply to the Federal Government scheme for additional leave.

Parental leave includes maternity and paternity leave and leaves for when a child is adopted. An employee must have completed at least 12 months of employment to be eligible. Parental leave is unpaid leave that lasts for 12 months, and it is possible to request an additional 12 months from the employer.

1. Annual Leave - For each year of service with their employer, an employee is entitled to 4 weeks of paid annual leave or 5 weeks of paid annual leave, if:
   A modern award applies to the employee and defines or describes the employee as a shift employee for the National Employment Standards
2. Compassionate Leave - 2 days of paid leave 
3. Pre-Adoption Leave - 2 days of unpaid leave 
4. Paid family and domestic violence leave - All employees in the Fair Work system (including part-time and casual employees) will be entitled to 10 days of Leave in a 12-month period.
5. Community Service Leave 
6. Long Service Leave 

The grounds for dismissal can include capacity, performance, misconduct (including serious misconduct), and redundancy.

Severance pay is given based on a continuous period of service, and the pay rate is given for ordinary hours worked:

• 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

Several categories of permanent visas may be suitable for employees entering Australia for employment. Australia's immigration system is overseen by the government's Department of Home Affairs, which imposes specific qualification requirements on each visa type - these include provisions for employee sponsorship and professional skill level.

The key visas that are suitable for mobile employees entering Australia for work include:

Australia's regional visas are intended for skilled workers working in regional Australia. Employees must be nominated by an employer in Australia and meet skill, qualification, and language requirements.

The categories of regional visas are: 

1. Regional Sponsor Migration Scheme (currently closed to new applications)
2. Permanent Residence (Skilled Regional Visa)

Like regional visas, this type of visa is intended for skilled employees taking jobs in Australia with the nomination and sponsorship of their employers. Skilled migration visas are available in the following categories:

1. Employer Nomination Scheme visa
2. Skilled Independent visa (available to New Zealand citizens)
3. Skilled Nominated visa
4. Skilled Regional visa (for employees who have previously worked in Australia on an eligible visa)

This is for employees who have international recognition in an eligible employment field. The Global Talent visa requires the nomination of an Australian (or New Zealand) permanent resident, citizen, or Australian organization.

Employers should seek advice from an immigration specialist to ensure that the visa they are considering is the most appropriate based on the facts and circumstances of each case

• Provide the pages of your current passport showing your photo, personal details, passport issue, and expiry dates.
• Also provide proof of a change of name if applicable
• For the TSS skills assessment by Trades Recognition Australia, you must have the skills assessment reference number. Your application is not valid if it is not provided.
• Qualification certificates (professional and educational).
• References from previous employers must cover a period long enough to show the needed skill level and experience.
• Your curriculum vitae (CV) or resumé should cover at least the last five years and showcase:
• Full employment and educational history

1. Dates and positions held
2. The name, title, and contact details of referees
3. That you meet the two years' work experience if this applies.
4. English language competency as required by the labor agreement 

You will need to provide evidence of adequate health insurance for you and any secondary applicants for the duration of your stay in Australia.

Background checks are generally permissible in the Australian employment law context to the extent that the checks are necessary to ascertain a candidate's ability to fulfill the role. Police records and working-with-children checks are generally mandated for positions that involve working with vulnerable individuals

Other justifiable circumstances include checks regarding honesty and integrity, for example, when an employer seeks to engage an individual in a role that involves responsibility for significant financial transactions. Some legislative schemes in Australia specify the circumstances in which convictions are no longer considered, commonly referred to as 'spent convictions' regimes. Also, some roles in certain organizations require specific security clearances.

Background checks that do not carry some form of justification run the risk that they will be considered discriminatory or an infringement of the individual's privacy, irrespective of whether they are conducted directly by the employer or by a third party as the employer's agent.

Background screening covers issues such as job applicants' education qualifications, previous employment, health/medical condition, criminal records, and even online /social media activity. Following background checks in Australia: Educational and Past employment record, Criminal Record, Health Checks/ Medical Screening, social media/ Internet Searches, Drug and Alcohol testing.