Mining workers in Australia are covered by the Mining Industry Award 2020 with higher minimum rates than most other Awards. FIFO employees get 5 weeks annual leave (not 4) for continuous shift work. Employers must provide site accommodation, manage fatigue under WHS laws, and hold state-specific workers’ comp. Each state has different mine safety legislation — WA (DMIRS), QLD (RSHQ), NSW (Resources Regulator).
Employer of Record for Mining & Resources Companies in Australia
Australia is the world's largest exporter of iron ore, lithium, and liquefied natural gas. It is the second-largest exporter of coal and a globally significant producer of gold, copper, zinc, nickel, rare earths, and bauxite. The mining and resources sector contributed $455 billion in export revenue in 2024-25 and directly employs over 300,000 workers, with a further 700,000 in mining services and supply chains.
For foreign mining companies — Canadian juniors exploring lithium tenements in Western Australia, Chinese state-owned enterprises developing iron ore projects in the Pilbara, US engineering firms contracted to build processing plants, or UK-listed companies operating gold mines in NSW — the need for Australian-based workers is unavoidable. Geologists, drillers, mining engineers, environmental scientists, safety officers, heavy equipment operators, and camp administrators are needed on the ground, often in remote locations, under employment conditions that are among the most complex and highly regulated in any Australian industry.
Setting up an Australian entity to employ these workers is expensive and slow. ASIC registration, appointment of a resident director, a registered office address, tax registrations, state-based WorkCover insurance, payroll tax obligations, and mining-specific regulatory requirements can take three to six months and cost well over $15,000 before a single worker starts. For exploration programs lasting 12 to 18 months, or project development phases where workforce needs fluctuate significantly, an Employer of Record arrangement provides a faster, lower-risk path to having a compliant Australian workforce.
This guide covers the specific Award conditions, FIFO requirements, WHS obligations, and state mining regulations that apply when employing workers in the Australian mining and resources sector through an EoR — issues that generic EoR platforms rarely understand in sufficient depth.
Why Mining Companies Use an EoR in Australia
Foreign mining and resources companies typically engage an EoR for one of four reasons, each tied to the industry's project-based, cyclical nature.
Exploration phase workforce. Greenfield exploration programs need geologists, geophysicists, drill crews, environmental scientists, and field technicians for defined periods — typically 6 to 18 months. A Canadian lithium explorer that has acquired tenements in the Greenbushes region of Western Australia needs a team of eight to twelve people on the ground. Establishing a Pty Ltd for an exploration program that may not lead to a development decision is premature. An EoR allows the company to employ Australian workers legally, compliantly, and quickly while the exploration program runs its course.
Project development and construction. The build phase of a mine — from feasibility study through to commissioning — requires large engineering and construction teams with highly variable headcount. A US engineering firm contracted to design and supervise construction of a processing plant in the Bowen Basin needs Australian-based project engineers, construction managers, and commissioning specialists for two to three years. An EoR handles the employment complexity while the firm focuses on delivery.
FIFO workforce management. Fly-in, fly-out employment involves complex payroll calculations that generic EoR platforms are not equipped to handle: shift allowances, remote area loadings, travel day payments, accommodation and meal provisions, fatigue management compliance, and workers compensation that covers workers both on-site and in transit. An EoR with mining industry experience manages all of this within the framework of the Mining Industry Award 2020.
Cyclical and seasonal scaling. Commodity prices drive hiring cycles in mining more than in almost any other industry. When iron ore prices surged above US$200/tonne in 2021, mining companies scrambled to hire. When prices fell, they needed to scale back. An EoR allows foreign companies to scale their Australian workforce up or down in response to commodity cycles without the fixed overhead of maintaining a permanent entity and the costs of redundancy provisions that come with direct hiring through a subsidiary.
Mining Industry Award 2020
The Mining Industry Award 2020 (MA000011) is the primary industrial instrument covering employees in the Australian mining sector. It applies to employers in the black coal mining industry (through the separate Black Coal Mining Industry Award 2020, MA000001, in some cases), metalliferous mining, quarrying, and mineral processing.
Understanding this Award is not optional. It sets the legal minimum for pay rates, hours, rosters, leave, and allowances. Any employment contract — including one administered through an EoR — must meet or exceed these minimums. Underpayment, even unintentional, exposes both the EoR and the host company to Fair Work Ombudsman enforcement action.
Classification Structure
The Mining Industry Award uses a classification structure that progresses from entry-level mine workers through to senior technical and supervisory roles:
| Classification | Description | Minimum Weekly Rate (2025-26) |
|---|---|---|
| Mine Worker Grade 1 | Entry-level, routine tasks under direct supervision | ~$1,015 |
| Mine Worker Grade 2 | Some experience, limited range of tasks | ~$1,055 |
| Mine Worker Grade 3 | Competent worker, broader range of duties | ~$1,095 |
| Mine Worker Grade 4 | Skilled operator, exercises judgement | ~$1,150 |
| Mine Worker Grade 5 | Highly skilled, supervisory or advanced technical | ~$1,200 |
| Senior Technical Officer | Specialist expertise, significant autonomy | ~$1,310 |
These rates are notably higher than most other industry Awards. A Mine Worker Grade 4 under the Mining Industry Award earns a higher base minimum than equivalent classifications under the Manufacturing Award or the Building and Construction Award. This reflects the hazardous nature of the work, the remote locations, and the disruption to normal life that mining employment involves.
In practice, market rates in mining are substantially above Award minimums. The Award rates set the floor; competitive market pressures — particularly during skills shortages — push actual salaries well above these levels.
Shift Work Provisions
Mining operations rarely follow standard Monday-to-Friday, 9-to-5 patterns. The Award provides for:
- Ordinary hours: Up to 12 hours per shift (compared to 7.6 hours under most Awards)
- Roster patterns: 7 days on/7 days off, 14 on/14 off, 8 on/6 off, and other even-time or uneven-time rosters are all common
- Night shift penalty: 130% of ordinary rate for ordinary hours worked on a night shift
- Saturday penalty: 150% for ordinary hours worked on a Saturday
- Sunday penalty: 200% for ordinary hours worked on a Sunday
- Overtime: 150% for the first two hours, 200% thereafter; all overtime on Sundays at 200%
- Public holiday rate: 250% for work on a public holiday
These penalty rate calculations are where payroll complexity increases significantly. A FIFO worker on a 14/14 roster working 12-hour shifts that span nights and weekends will have multiple penalty rate calculations applied across a single pay period. Generic payroll systems — and generic EoR platforms — frequently miscalculate these amounts.
Annual Leave: 5 Weeks for Continuous Shift Workers
One of the most significant differences in the Mining Industry Award is annual leave entitlements. Under the National Employment Standards, the standard entitlement is 4 weeks of paid annual leave per year. However, continuous shift workers under the Mining Industry Award are entitled to 5 weeks of annual leave per year.
An employee is a continuous shift worker if they are regularly rostered to work on Sundays and public holidays as part of a continuously rotating shift pattern. Most FIFO mining workers meet this definition. Failing to provide the additional week is a common compliance error that attracts Fair Work scrutiny.
Annual leave loading of 17.5% also applies, calculated on the base rate of pay.
Remote Area Allowances
The Award provides for district allowances that compensate workers for the isolation and higher cost of living associated with remote mine sites. These allowances vary depending on the location and are often supplemented by enterprise agreements or individual contracts. Common supplementary allowances include:
- Locality or district allowance (fixed weekly amount)
- Climate allowance (for extreme heat or cold conditions)
- Disability allowance (for particularly hazardous or uncomfortable conditions)
The specific amounts are not always prescribed by the Award itself — many are set through enterprise agreements negotiated at the site or company level. An EoR must ensure any allowance arrangements comply with both the Award and any applicable enterprise agreement.
FIFO-Specific Compliance
Fly-in, fly-out employment is the dominant model for mining operations in remote Australia — the Pilbara, Goldfields, Bowen Basin, and central Queensland are all predominantly FIFO workforces. FIFO introduces compliance obligations that do not exist in standard employment arrangements.
| Condition | Requirement |
|---|---|
| Travel time | Varies by Award and arrangement. Under the Mining Award, travel to and from a FIFO point is generally not treated as ordinary working time, but must be specified in the employment contract. Some enterprise agreements provide paid travel time. |
| Accommodation | Employer must provide suitable on-site accommodation and meals at no cost to the employee. Accommodation standards are governed by state mining regulations (e.g., WA Code of Practice for Accommodation). |
| Rest and Recreation (R&R) leave | Additional leave to compensate for the disruption of FIFO rosters. Typically accrued as extra days off during the "off" swing. Entitlements vary by roster pattern and are often set by enterprise agreement. |
| Fatigue management | Employers have a positive duty under WHS legislation to manage fatigue risk. This includes maximum shift lengths, minimum break periods between shifts, roster design, and travel fatigue after flights. |
| Workers compensation | Coverage must extend to the worker at the mine site AND during travel to and from the fly-in point. Injuries sustained in transit are compensable. The EoR as the legal employer must ensure the WorkCover policy covers journey claims. |
| Fly-in point | The designated airport from which the employee flies to site. Must be specified in the employment contract. The employer bears the cost of flights between the fly-in point and the mine site. |
| Mental health | FIFO workers experience higher rates of psychological injury than the general workforce. WA introduced a voluntary code of practice for FIFO mental health in 2015, and mining companies are increasingly expected to provide Employee Assistance Programs (EAPs) and mental health support. |
The EoR, as the legal employer, carries the primary obligation for all of these conditions. A foreign mining company using an EoR must verify that the provider has genuine experience managing FIFO employment — not just a checkbox on a website, but demonstrated capability in roster management, mining payroll, and FIFO-specific compliance.
State-Specific Mining Regulations
Mining in Australia is primarily regulated at the state and territory level. Each jurisdiction has its own mining safety legislation, regulatory body, and worker registration requirements. This creates a layer of complexity above the federal Award and employment standards.
Western Australia
WA is Australia's largest mining state by value of production, accounting for over 50% of national mining output. Mining safety is regulated by the Department of Mines, Industry Regulation and Safety (DMIRS) under the Mines Safety and Inspection Act 1994 (being transitioned to the Work Health and Safety (Mines) Act 2024).
Key requirements:
- Standard 11 site induction: The WA mining industry has adopted a standardised general induction program (commonly referred to as "Standard 11" or the WA Mining Induction). All workers on a WA mine site must complete this induction before commencing work. It covers basic safety awareness, emergency procedures, and hazard identification.
- Registered Mine Manager: Every mine must have a registered mine manager appointed. This is a statutory position with personal liability.
- Exploration-specific requirements: Even exploration programs require compliance with DMIRS regulations, including environmental management plans and rehabilitation bonds.
Queensland
Queensland's mining industry is regulated by Resources Safety & Health Queensland (RSHQ). Coal mining in Queensland is subject to separate legislation: the Coal Mining Safety and Health Act 1999 and the Mining and Quarrying Safety and Health Act 1999.
Key requirements:
- Coal mining: The Black Coal Mining Industry Award 2020 (MA000001) applies instead of the Mining Industry Award. This Award has its own classification structure, pay rates, and conditions. Coal mining also has additional statutory positions, including a Site Senior Executive (SSE) and an Industry Safety and Health Representative.
- Generic safety induction: Queensland requires a recognised mining safety induction (similar to WA's Standard 11).
- Coal Workers' Pneumoconiosis (CWP): Queensland reintroduced mandatory health screening for coal mine workers following the re-identification of black lung disease in 2015. Employers must fund periodic health surveillance.
New South Wales
NSW mining is regulated by the NSW Resources Regulator under the Work Health and Safety (Mines and Petroleum Sites) Act 2013. Key requirements include:
- Mining competency requirements: Workers in certain roles must hold recognised competencies (e.g., shotfirer, mine deputy, ventilation officer).
- Worker registration: NSW requires mine workers to be registered with the Resources Regulator.
- Coal mining: NSW coal mines are also subject to additional regulatory requirements, including specific ventilation and gas monitoring standards.
South Australia and Northern Territory
SA and NT have smaller but significant mining sectors, particularly in copper (Olympic Dam), uranium (Ranger, now rehabilitating), gold, and rare earths.
- SA: Regulated by the Department for Energy and Mining under the Work Health and Safety Act 2012. South Australia's remote operations (e.g., Prominent Hill, Carrapateena) require specific heat stress management plans and remote area emergency response capability.
- NT: Regulated by NT WorkSafe. The Territory's mining operations face additional challenges around Indigenous land use agreements, sacred site clearances, and extreme wet/dry season conditions that affect operational schedules.
Environmental Bonds and Rehabilitation
All states require mining companies to lodge environmental rehabilitation bonds — financial guarantees that the mine site will be rehabilitated when operations cease. While these are typically the responsibility of the tenement holder rather than the EoR, the EoR must ensure that employees engaged in environmental management and rehabilitation work are appropriately classified and paid.
Typical Mining Roles and Salary Ranges
Market rates for mining roles in Australia are among the highest in any industry, reflecting the remote locations, physically demanding conditions, and skills shortages that have characterised the sector for over a decade.
| Role | Typical Salary (AUD) | Common Roster | Award Coverage |
|---|---|---|---|
| Geologist (Exploration) | $120,000 – $180,000 | Project-based or FIFO 2/1 | Mining Award / Professional Employees Award |
| Drill Helper / Offsider | $70,000 – $90,000 | FIFO 2/1 | Mining Award Grade 2-3 |
| Mining Engineer | $150,000 – $220,000 | FIFO 2/1 | Mining Award / Award-free (above threshold) |
| Environmental Scientist | $100,000 – $140,000 | FIFO 2/1 or residential | Professional Employees Award |
| Heavy Equipment Operator | $100,000 – $140,000 | FIFO 2/1 | Mining Award Grade 4-5 |
| Metallurgist | $120,000 – $160,000 | Residential or FIFO | Mining Award / Professional Employees Award |
| Safety Officer (WHS) | $110,000 – $150,000 | FIFO 2/1 | Mining Award |
| Camp / Site Administrator | $70,000 – $90,000 | FIFO 2/1 | Clerks — Private Sector Award |
Notes on the table:
- "2/1" roster means 2 weeks on, 1 week off. Other common patterns include 8/6, 14/14, and 9/5.
- Award-free roles: Employees earning above the high-income threshold (currently $175,000/year) can be covered by a guarantee of annual earnings that displaces certain Award conditions. Many senior mining engineers, project managers, and senior geologists fall into this category.
- Professional Employees Award: Geologists, environmental scientists, and metallurgists may be covered by this Award rather than the Mining Industry Award, depending on the nature of their work and qualifications. The correct Award classification depends on the role, not the job title.
- Salary ranges include base salary only. Total remuneration packages in mining often include superannuation (currently 12%), travel allowances, and production bonuses that can add 15-30% to base salary.
Work Health and Safety Obligations
Mining is classified as a high-risk industry under Australian WHS legislation. The obligations on employers — including an EoR acting as the legal employer — are correspondingly stricter than in most other sectors.
Statutory Positions
Every mine must have certain statutory appointments in place. These are personal appointments with individual legal liability:
- Site Senior Executive (SSE): The most senior person at the mine with overall responsibility for safety. Required in Queensland and increasingly expected in other states.
- Registered Mine Manager: Required in all jurisdictions. Must hold specific qualifications and competencies.
- Ventilation Officer: Required for underground operations. Responsible for atmospheric monitoring and ventilation systems.
- Quarry Manager: Required for quarrying operations.
These positions cannot be filled by the EoR — they are filled by the mining company or operator. However, the EoR must ensure that workers it employs are not placed on sites that lack the required statutory appointments.
Mandatory Competencies and Inductions
Before any worker can commence on a mine site, they must hold:
- A valid general mining induction (e.g., WA Standard 11, QLD generic induction)
- A site-specific induction for that particular mine
- Any role-specific competencies (e.g., working at heights, confined spaces, shotfiring, first aid)
- Current medical fitness certificate (many sites require pre-employment and periodic medicals)
- Relevant tickets and licences (e.g., HR/HC truck licence, front-end loader, excavator, crane)
The EoR must verify and maintain records of all competencies and inductions. Placing a worker on site without valid inductions is a criminal offence under mining safety legislation.
Drug and Alcohol Testing
Virtually all Australian mine sites operate mandatory drug and alcohol testing programs, including:
- Pre-employment testing
- Random testing during employment
- Blanket testing (all workers on site tested)
- For-cause testing (after incidents or near-misses)
- Self-declaration programs
The EoR must have a drug and alcohol policy that is consistent with the mine site's requirements. A positive test result creates an immediate employment issue that the EoR must manage, including stand-down procedures, return-to-work programs, and potential termination.
EoR's Duty of Care
As the legal employer, the EoR holds a primary duty of care under WHS legislation for the health and safety of its workers at the mine site. This includes:
- Ensuring workers are fit for the work they are assigned
- Providing appropriate personal protective equipment (or verifying the host site provides it)
- Monitoring hours of work and fatigue
- Responding to workplace injuries and managing workers compensation claims
- Consulting with workers on WHS matters
- Reporting notifiable incidents to the relevant state regulator
A foreign mining company selecting an EoR for mining operations must satisfy itself that the EoR has genuine mining WHS capability — safety management systems, incident reporting processes, return-to-work programs, and experienced personnel who understand mining-specific hazards. This is not a domain where a generalist EoR platform will suffice.
Frequently Asked Questions
Can a foreign mining company hire Australian workers through an EoR?
Yes. The EoR becomes the legal employer of the workers in Australia, handling employment contracts, payroll, superannuation, WorkCover, payroll tax, and all compliance obligations. The foreign mining company directs the day-to-day work. This is a common arrangement for exploration programs, project development phases, and situations where establishing an Australian entity is premature or impractical.
How does FIFO employment work with an EoR?
The EoR manages the full FIFO employment arrangement: the employment contract specifying the roster pattern and fly-in point, flight bookings and travel coordination (or reimbursement), on-site accommodation arrangements with the mine operator, shift penalty calculations across the roster cycle, and workers compensation that covers both on-site work and travel. The mine operator typically provides accommodation and meals on site; the EoR ensures the employment contract reflects these arrangements.
What mining-specific safety requirements does the EoR handle?
The EoR is responsible for verifying that workers hold current mining inductions, role-specific competencies, and medical fitness certificates before they commence on site. The EoR must also maintain a drug and alcohol policy consistent with site requirements, manage workers compensation claims for mining injuries, report notifiable incidents to state regulators, and monitor fatigue in accordance with WHS obligations. The mine operator retains responsibility for site-level safety management, but the EoR as employer shares the duty of care.
Do mining workers get 5 weeks annual leave?
Continuous shift workers under the Mining Industry Award 2020 are entitled to 5 weeks of paid annual leave per year, compared to the standard 4 weeks under the National Employment Standards. An employee qualifies as a continuous shift worker if they are regularly rostered to work on Sundays and public holidays as part of a continuously rotating roster. Most FIFO mining workers on even-time rosters (e.g., 14/14, 7/7) meet this definition.
How are remote area allowances calculated?
The Mining Industry Award provides for district allowances, but specific amounts are often set through enterprise agreements at the site or company level rather than prescribed in the Award itself. Common remote area allowances include a locality or district allowance (a fixed weekly amount that varies by location), a climate allowance for sites with extreme temperatures, and a disability allowance for particularly hazardous or uncomfortable conditions. The EoR must ensure that any allowance arrangements comply with the Award minimum and any applicable enterprise agreement.
Can EoR workers operate on mine sites that require specific inductions?
Yes, but the EoR must ensure the worker completes all required inductions before commencing on site. This includes the relevant state general mining induction (e.g., WA Standard 11, QLD generic induction), a site-specific induction for the particular mine, and any role-specific competency training. The EoR is responsible for verifying, funding (where required), and maintaining records of all inductions and competencies. Workers cannot commence on a mine site without valid inductions — doing so is a criminal offence under state mining safety legislation.
Related Resources
- Employer of Record Services — Overview of AusBusinessRegister.com.au's EoR services for foreign companies
- Employer of Record vs Direct Hiring: Complete Guide 2026 — When to use EoR versus setting up your own entity
- Branch Establishment Services — Registering an Australian branch for your foreign mining company
- HR Compliance Services — Ongoing Award compliance, payroll, and workforce management