Employer of Record (EOR) Services

Expanding your business into Australia no longer requires the complexity and expense of establishing a local entity. AU Business Register’s Employer of Record (EOR) services enable international companies to hire Australian talent quickly, legally, and compliantly. As your trusted EOR partner, we become the legal employer of your Australian workforce while you maintain complete operational control. From employment contracts and payroll processing to superannuation and tax compliance, we handle every aspect of Australian employment law so you can focus on growing your business in one of the Asia-Pacific region’s most dynamic markets.

What is an Employer of Record (EOR)?

Definition

An Employer of Record is a third-party organisation that serves as the official legal employer for your workforce in a foreign country. The EOR assumes all statutory employer responsibilities, including payroll, tax compliance, benefits administration, and adherence to local employment legislation. This arrangement allows foreign companies to hire employees in Australia without the need to register a subsidiary, branch office, or any other form of local business entity.

How It Works

The EOR model creates a co-employment relationship that benefits all parties involved. AU Business Register employs your chosen candidates on your behalf, handling all legal and administrative employer obligations. Meanwhile, you retain full control over the employee’s day-to-day work activities, project assignments, performance management, and professional development. The employee works exclusively for your organisation under your direction, while we ensure complete compliance with Australian employment law.

Legal Employment Structure

Under Australian law, AU Business Register becomes the employer of record for tax, superannuation, and workers’ compensation purposes. We execute compliant employment contracts, register employees with the Australian Taxation Office (ATO), manage superannuation contributions through authorised funds, and maintain appropriate workers’ compensation insurance coverage. This structure provides your employees with the same protections and entitlements as any other Australian worker while shielding your organisation from compliance risks.

Why Use an EOR in Australia?

No Local Entity Needed

Establishing a company in Australia involves complex registration requirements, ongoing compliance obligations, and significant administrative overhead. With our EOR services, you can hire Australian employees immediately without registering with ASIC, obtaining an Australian Business Number (ABN), or navigating the intricacies of corporate governance requirements. If you later decide to establish a permanent presence, our company formation services make the transition seamless.

Fast Market Entry

Time-to-hire is critical when expanding into new markets. Traditional entity establishment can take several months, whereas our EOR solution enables you to onboard employees within days. This rapid deployment capability allows you to capture market opportunities, respond to client demands, and test the Australian market before committing to a permanent corporate structure.

Compliance Handled

Australian employment law is comprehensive and strictly enforced. The Fair Work Act 2009, National Employment Standards, Modern Awards, and state-based regulations create a complex compliance landscape. Non-compliance can result in substantial penalties, reputational damage, and legal liability. Our team of employment law specialists ensures your workforce operations meet every regulatory requirement, protecting both your organisation and your employees.

Cost-Effective

The costs associated with establishing and maintaining an Australian entity extend far beyond initial registration fees. Ongoing accounting, tax filing, director obligations, and administrative requirements create substantial overhead. Our EOR services consolidate these costs into a predictable monthly fee, eliminating surprise expenses and enabling accurate budget forecasting for your Australian operations.

Our EOR Services Include

Employment Contracts

We draft and execute fully compliant employment contracts tailored to each employee’s role, industry, and applicable Modern Award. Our contracts address all mandatory terms including position details, remuneration, working hours, leave entitlements, termination provisions, and confidentiality obligations. Each contract is reviewed to ensure alignment with current legislation and best practice standards.

Payroll Processing

Our comprehensive payroll services ensure your employees are paid accurately and on time, every pay cycle. We calculate gross and net pay, process allowances and deductions, generate compliant payslips, and maintain detailed payroll records. Our systems integrate with Single Touch Payroll (STP) for seamless ATO reporting, ensuring real-time compliance with Australian tax obligations.

Superannuation (12%)

Australian employers must contribute a minimum of 12% of ordinary time earnings to employees’ superannuation funds (as of 2025-26, remaining at the final rate of 12%). We manage the entire superannuation process, including fund selection compliance, contribution calculations, quarterly payments to employee-nominated or default funds, and SuperStream reporting requirements.

PAYG Withholding

Pay As You Go (PAYG) withholding requires employers to deduct income tax from employee payments and remit these amounts to the ATO. We calculate withholding amounts based on current tax tables, employee declarations, and any applicable offsets. All PAYG obligations are reported through Single Touch Payroll and reconciled annually via payment summaries.

Workers Compensation

Workers’ compensation insurance is mandatory in all Australian states and territories. We maintain appropriate coverage for all employees under our EOR arrangement, managing policy procurement, premium payments, and claims administration. Our coverage ensures employees receive statutory benefits in the event of workplace injury or illness while protecting your organisation from liability exposure.

Leave Management

Australian employees are entitled to various forms of leave under the National Employment Standards and applicable Modern Awards. We track and manage annual leave, personal/carer’s leave, compassionate leave, parental leave, long service leave, and public holidays. Our systems maintain accurate leave balances and ensure proper payment calculations for all leave types.

Australian Employment Compliance

Navigating Australian employment law requires specialist knowledge and constant vigilance. Our HR compliance services ensure your workforce operations meet all regulatory requirements.

Fair Work Act 2009

The Fair Work Act is the primary legislation governing employment relationships in Australia. It establishes minimum employment conditions, unfair dismissal protections, workplace rights, and industrial action frameworks. Our compliance protocols ensure all employment practices align with Fair Work requirements, reducing the risk of disputes, claims, and regulatory penalties.

National Employment Standards (NES)

The NES comprises 11 minimum entitlements that apply to all employees covered by the national workplace relations system. These include maximum weekly hours, flexible working arrangements, parental leave, annual leave, personal leave, community service leave, long service leave, public holidays, notice of termination, redundancy pay, and the Fair Work Information Statement. We build these entitlements into every employment arrangement we manage.

Modern Awards

Modern Awards set minimum pay rates and conditions for employees in specific industries or occupations. Australia has over 120 Modern Awards, each containing detailed provisions regarding classification structures, wage rates, allowances, overtime, and penalty rates. Our team identifies the applicable Award for each employee and ensures all remuneration and conditions meet or exceed Award minimums.

EOR vs Establishing Your Own Entity

Choosing between an EOR arrangement and establishing your own Australian entity depends on various factors including timeline, budget, headcount, and long-term strategic plans.

When to Transition

Many clients begin with our EOR services and later transition to their own entity as their Australian operations mature. We recommend considering entity establishment as your headcount approaches the cost crossover (around four to five employees at our rates), when you require direct customer contracts with Australian government agencies, or when your strategic plan includes significant capital investment in Australian assets. Our company formation team can manage this transition while ensuring continuity for your existing employees.

EOR Cost in Australia: Full Breakdown

EOR pricing in Australia splits into two parts: the provider's service fee and the statutory on-costs every employer pays on top of salary. Most providers quote only the first part, so the comparison below covers both.

Service Fees: Local EOR vs Global Platforms

Global platforms serve 100+ countries from a single dashboard, which is genuinely useful if you are hiring across many markets at once. If Australia is your only or primary hire, you are paying for infrastructure you do not use. Our fee is a flat AU$500 per employee per month, billed in Australian dollars with no currency spread, and your queries are answered by the same CA-qualified team that runs the payroll.

Mandatory Employer On-Costs in Australia

Whoever you choose as EOR, these statutory costs sit on top of gross salary and are passed through at cost:

Worked example: an employee on AU$100,000 costs about AU$12,000 in super, roughly AU$1,000 to AU$2,000 in workers compensation, usually AU$0 payroll tax for a first hire under the state threshold, plus AU$6,000 in EOR fees at our rate. Total employment cost: approximately AU$119,000 to AU$120,000 per year.

EOR vs PEO vs Your Own Entity: Which One and When

These three models are often conflated, and the US-style "PEO co-employment" label does not map cleanly onto Australian law. In Australia, a PEO arrangement means you outsource HR and payroll administration but remain the legal employer, which requires you to have an Australian entity. An EOR removes that requirement entirely.

The Cost Crossover Point

An Australian Pty Ltd costs from AU$1,511 all-in to establish through our company formation service (AU$900 service fee plus the AU$611 ASIC registration fee, rising to AU$636 from 1 July 2026), with ongoing compliance from AU$2,500 per year. At our EOR rate of AU$500 per employee per month, the crossover typically arrives at around four to five employees: that is the point where annual EOR fees exceed the cost of running your own entity with outsourced payroll. At global platform rates of AU$700 to AU$1,000 per employee per month, the crossover often arrives at just two to three employees. For a full comparison of the two paths, see our guide to EOR vs direct hiring in Australia.

The numbers are not the whole story. An entity makes sense earlier if you need to sign local customer contracts, hold licences, claim the R&D tax incentive, or sponsor visas. An EOR keeps making sense beyond five employees if headcount is temporary or you want zero local administration.

What an EOR Cannot Do in Australia

EOR marketing tends to present the model as a universal answer. It is not, and knowing the limits before you commit avoids expensive restructuring later.

Licensed and Registered Professions

Where the operating business itself must hold a registration or licence, an EOR cannot hold it for you. Legal practices, registered health providers, licensed builders, financial services firms requiring an AFSL, and real estate agencies all need the licensed entity to be the one conducting the business. An EOR can still employ your support and administrative staff, but the regulated activity needs your own licensed Australian entity.

Visa Sponsorship Constraints

A standard EOR arrangement generally cannot sponsor a Skills in Demand (subclass 482) visa. The sponsoring business must be an approved Standard Business Sponsor, and sponsoring workers who are then placed with an unrelated client is on-hire activity that requires a specific labour agreement with the Department of Home Affairs. If your hiring plan depends on relocating foreign staff to Australia, that usually points to establishing your own entity and sponsorship approval, and we can advise on the right sequence.

Sham Contracting Exposure Does Not Disappear

An EOR is for genuine employees. Using one to dress up what is really an independent-contractor arrangement, or engaging "contractors" alongside EOR staff doing identical work, leaves you exposed under the Fair Work Act's sham contracting provisions. Penalties for a body corporate reach AU$99,000 per contravention, and up to AU$495,000 for serious contraventions. The misclassification rules and recent court treatment are covered in our guide to sham contracting penalties in Australia.

Permanent Establishment Risk Stays With You

An EOR moves employment obligations, not tax residency analysis. If your Australian staff habitually conclude contracts or generate revenue locally, the ATO can still find your foreign company has a permanent establishment with Australian tax obligations, regardless of who issues the payslips. We flag this risk during onboarding and refer clients for tax advice where the role profile warrants it.

Switching from Deel or Remote to a Local EOR

Companies usually switch for three reasons: fees (a saving of AU$200 to AU$500 per employee per month adds up across a team), support hours that match Australian time zones, and access to advisers who actually know Australian awards rather than a global help desk. We compare the two models in detail in Deel vs a local Australian EOR.

The migration is more straightforward than most teams expect. The standard sequence:

1. Review the current arrangement. Check notice provisions in your platform agreement and the employee's contract, and confirm leave balances and the applicable Modern Award classification.
2. Issue new contracts with service continuity. We draft employment contracts that recognise prior service, so accrued National Employment Standards entitlements such as annual leave, personal leave and redundancy continuity are preserved rather than reset.
3. Transfer leave balances. Accrued entitlements are quantified, paid out or transferred by agreement, and re-recorded in our payroll from day one.
4. Coordinate the cutover date. We align the switch to a pay period boundary. The outgoing EOR finalises its Single Touch Payroll reporting and superannuation contributions; we commence STP reporting from the first new pay run with no gap in workers compensation coverage.
5. Brief the employee. The change is a new legal employer with identical day-to-day work. A short, well-drafted communication keeps it a non-event for the person involved.

A typical single-employee migration completes within one to two weeks, timed to the pay cycle.

Industries We Serve

Technology

Australia’s technology sector offers exceptional talent and a favourable business environment. We support global technology companies in hiring software developers, engineers, product managers, and technical specialists across all Australian states. Our understanding of tech industry Award classifications and common remuneration structures ensures competitive and compliant employment packages.

Professional Services

International consulting firms, accounting practices, legal services, and financial institutions leverage our EOR services to establish Australian client service capabilities without local entity overhead. We accommodate the unique requirements of professional services employment, including variable bonus structures, professional development allowances, and flexible working arrangements.

Mining and Resources

Australia’s mining and resources sector attracts significant international investment. Our EOR services support exploration companies, mining contractors, and resource services providers in engaging Australian personnel for project-based and permanent roles. We have particular expertise in remote work arrangements, fly-in-fly-out (FIFO) employment structures, and the specific Modern Awards applicable to the mining industry.

EOR Guides by Industry

We publish dedicated guides covering award coverage, typical on-costs and hiring pitfalls in the sectors we serve most:

Onboarding Process

Timeline

Our streamlined onboarding process enables rapid employee deployment:

• Day 1: Service agreement execution and employee details submission
• Day 2-3: Employment contract drafting and compliance review
• Day 3-4: Employee contract execution and tax file number declaration
• Day 4-5: Superannuation fund setup and workers’ compensation registration
• Day 5: Employee commences work

Requirements

To commence an EOR engagement, we require the following information:

• Employee personal details and contact information
• Position title and job description
• Proposed salary package and any additional benefits
• Working hours and location arrangements
• Reporting structure and manager contact details
• Preferred start date
• Any specific contractual terms or conditions

Frequently Asked Questions

How much does an employer of record cost in Australia?

AusBusinessRegister.com.au charges from AU$500 per employee per month as a flat fee. Global platforms such as Deel, Remote and Oyster publish rates typically in the AU$700 to AU$1,000+ per month range. On top of any EOR fee, statutory on-costs apply: 12% superannuation, workers compensation of roughly 1% to 3% of wages, and payroll tax only once state wage thresholds are exceeded.

Is an employer of record legal in Australia?

Yes. An EOR is a lawful employment arrangement in which the provider is the legal employer under the Fair Work Act 2009 and must meet all National Employment Standards, Modern Award and superannuation obligations. In some states, including Victoria, Queensland and South Australia, labour hire licensing laws apply to this kind of arrangement, so the provider must hold the required licence where applicable.

What is the difference between an EOR and a PEO in Australia?

With an EOR, the provider is the legal employer, so you need no Australian entity. A PEO arrangement outsources HR and payroll administration while you remain the legal employer, which requires your own Australian entity. The US concept of co-employment has no direct equivalent under Australian law, so a "PEO" in Australia is in practice outsourced payroll and HR.

Can an EOR sponsor a 482 work visa in Australia?

Generally no. A Skills in Demand (subclass 482) sponsor must be an approved Standard Business Sponsor, and placing sponsored workers with an unrelated client is on-hire activity that requires a specific labour agreement with the Department of Home Affairs. If relocating foreign staff is central to your plan, the usual path is establishing your own Australian entity and sponsorship approval. We can advise on the sequence and timing.

Who is the legal employer with an EOR?

The EOR provider. We hold the employment contract and carry the obligations for payroll, PAYG withholding, superannuation, workers compensation and Fair Work compliance. You direct the employee's day-to-day work, set their goals and manage their performance, exactly as if they were on your own payroll.

How quickly can I hire in Australia with an EOR?

Typically one to five business days from signed agreement to a compliant, working employee. The main variables are how quickly the candidate returns their details and whether the role needs background checks. Setting up your own entity, by comparison, usually takes four to eight weeks before the first hire can start.

What is the minimum contract duration for EOR services?

We offer flexible engagement terms starting from a minimum of three months. This accommodates both project-based requirements and ongoing permanent employment arrangements. Shorter durations may be available for specific circumstances upon discussion with our team.

Can you employ contractors as well as employees?

Our EOR services are designed specifically for employment relationships. Australian law distinguishes clearly between employees and independent contractors, with misclassification carrying significant penalties. We can advise on appropriate engagement structures based on the nature of the work relationship and connect you with contractor management solutions if appropriate.

How do you determine the applicable Modern Award?

Modern Award coverage depends on the industry in which the employer operates and the type of work performed by the employee. Our compliance team analyses both factors to determine Award applicability. Some employees may be Award-free, particularly those earning above the high-income threshold or performing work not covered by any Award. We provide detailed Award coverage advice as part of our onboarding process.

What happens if an employee resigns or needs to be terminated?

We manage all aspects of employment cessation in compliance with Australian law. This includes providing or processing notice periods, calculating final entitlements including accrued leave, preparing employment separation certificates, and ensuring superannuation contributions are finalised. For terminations, we advise on procedural fairness requirements to minimise unfair dismissal risk.

Can employees work remotely from different states?

Yes, we support employees working from any Australian state or territory. We ensure appropriate workers’ compensation coverage for their work location, applicable public holiday entitlements, and compliance with any state-specific requirements. Employees can also work across multiple states, with our systems tracking location for compliance purposes.

How are employee benefits and allowances handled?

Beyond mandatory entitlements, we can incorporate additional benefits into employment packages as directed by you. Common additions include private health insurance allowances, professional development budgets, technology allowances, and enhanced leave provisions. We ensure all benefits are structured tax-efficiently and documented appropriately in employment contracts.

What reporting do you provide?

Clients receive comprehensive monthly reports including payroll summaries, leave balance statements, superannuation contribution records, and cost breakdowns. We also provide real-time access to our client portal where you can view employee information, approve leave requests, and access historical documentation. Custom reporting is available upon request.

Is there a limit to how many employees you can manage?

No, our EOR services scale to accommodate organisations of any size. We currently support clients with single employees through to those with substantial Australian workforces exceeding 100 personnel. Our infrastructure and processes are designed for scalability, ensuring consistent service quality regardless of headcount.

Start Hiring in Australia Today

Ready to expand your team into Australia without the complexity of entity establishment? Contact AU Business Register today to discuss your requirements and receive a customised EOR proposal. Our team is ready to help you navigate Australian employment law and onboard your first Australian employee within days.

Get Your Free EOR Consultation

Related Services

Foreign companies often combine this service with:

• HR Compliance Services – Employment law compliance and Fair Work Act guidance
• Payroll Services – Compliant Australian payroll processing and STP reporting
• Company Formation Services – Complete Australian company registration and incorporation
• Virtual Office Address – Professional business address in major Australian cities