To avoid penalties, overseas employers need to be aware of the requirements set by Australian employment laws before hiring staff within Australia to.
1. Foreign corporations doing business in Australia must be registered
Generally, companies which are registered outside of Australia will be considered a ‘foreign company’ for the purposes of Australian law and must be registered with the Australian Securities and Investment Commission in order to carry on business in Australia.
It may be unclear whether a company falls within the definition of a ‘foreign company’. If you are unsure, contact JFMLAW for advice.
2. Foreign corporations must have robust performance management policies
International employers should be aware of the strict laws Australia has in place to protect employees subject to performance management. It is important that foreign corporations understand these laws in order to ensure they have policies for performance management that are fair to employees and compliant with Australian law.
Read more: What You Need To Know About Performance Management In Australia or call JFMLAW for further advice.
3. Some employees have minimum entitlements under the modern award
Foreign companies which operate in Australia will generally be bound by the local labour legislation. In Australia, this includes laws governing minimum employee entitlements. Businesses operating from overseas that do not understand the laws relating to minimum entitlements may leave themselves open to underpayment claims, unfair dismissal claims or general protection claims.
Read more: Managing A Global Workforce: Australian Labour Laws or call JFMLAW for further advice.
4. Terminations must be fair
Where an employee is dismissed from their role in a manner that is considered harsh, unjust or unreasonable, it will be considered an unfair dismissal. For these purposes, it will be important that the employer has complied with obligations under the Fair Work Act 2009 to ensure there is appropriate behaviour and conduct between employees. If an employee is found to have been unfairly dismissed, the employer may be forced to reinstate the employee to their previous position or pay compensation.
5. Terminations cannot be made after an employee has raised a complaint, taken leave, or advised that the workplace is not safe
Employees in Australia are protected by the Fair Work Act 2009. In accordance with this legislation, it will be considered an unlawful termination if an employee is dismissed for taking leave or for exercising a workplace right to make a complaint or inquiry regarding their employment (for example, in relation to the safety of the workplace).
Read more: Terminating an Employee While On Leave Is Not Legally Acceptable or call JFMLAW for further advice.
Do you have any questions about employing people in Australia? Please do not hesitate to contact us on 02 9331 0266 to have a free of charge discussion.