Australia is a western country with a highly developed business sector. Most of Australia’s industry is located in cities in the coastal plain, like Melbourne and Sydney, where you can find business sectors in almost any field you can imagine.
Australia is a fertile ground for business opportunities for many Israeli business owners who are looking to develop their business activity outside of Israel.
One of the most significant challenges when providing services in Australia is the issue of hiring employees, and thus a question arises – whether it is worthwhile to hire employees. If the answer is yes – then when is the right time, and what is the recommended method?
Adecco Israel – a management company that provides business solutions in 66 countries around the world, including Australia!
What are the legal aspects of the labor market in Australia? How to hire employees in Australia? What are the alternatives to hiring employees in Australia?
Keep reading to find the answers to these questions, and more.
What are the legal aspects of the labor law in Australia?
The Australian employee rights are assembled under the Fair Work Act 2009. This act regulates the customary relationship between employers and employees in the workplace, namely – how must the employer treat his employees, whether they are full time employees, shift workers, contract workers, etc.
The Fair Work Act also regulates the customary protective laws in the country, including setting the minimum wage, establishing regulations of minimal safety to ensure the protection of employees, prohibition of discriminatory behavior, and so on.
Within the framework of The Act, there is a committee that convenes every year, to update the relevant rules in accordance with the changes in the labor market.
The most significant and direct change is the minimum wage. Following the collection of data on wages in the market, the minimum wage is updated every year. For instance, last year (2020), the minimum wage was 19.84 Australian Dollars per hour (approximately 50 NIS per hour).
An additional law that any employer in Australia must know is the National Employment Standard. This law determines additional social rights, for example – a maximum of 38 weekly hours for full time employees, a one-year maternity leave, 4 to 5 weeks of annual leave, depending on the type of employment (full time or shifts). Furthermore, the law determines the way in which an employer must apply the dismissal procedure.
It is very important to find professional counseling in order to ensure the Israeli business that is expanding in Australia is operating in the best way within the limitations of the law.
How to hire employees in Australia?
There are three common methods of hiring employees in the Australian labor market:
When using this method, the company has the responsibility and is in charge of every step of the employment process of the employees – starting with locating, sorting, recruiting and hiring. As a result, the company can determine how it would like to manage the recruiting stages, the criteria for hiring employees, the professional requirements and so on.
Despite the advantages, direct employment is a complex and difficult task, and it is possible that many Israeli companies operating in Australia do not have the required knowledge and resources to optimally apply direct employment.
This method is recommended mainly for clients that need to carry out projects that exceed the scope of their expertise.
Outsourcing is applied by communicating with an external company that is responsible for the implementation of the project from end to end, starting with recruiting the manpower and ending with employing them and meeting the requirements of the project.
When using the payroll method, the client company is in charge of recruitment and employment of the employees from the professional aspect, and the payroll company is responsible for taking care of all of the administrative aspects involved in employment, including: payment of salaries, compliance with payments required by law (health, pensions, etc.), keeping up to date with changes in the local regulations, and more.
Similar to direct employment, with this method the company maintains complete professional independence, whilst transferring the management of bureaucracies to an external agent. This way, Israeli companies can hire employees in Australia without having to deal with local bureaucracies, while maintaining full managerial independence.
What are the alternatives to hiring employees in Australia?
Hiring employees is typically suited for advanced stages of operating a business abroad, when there is no fear that the costs that stem from employment will impair the business’s ability to succeed.
Prior to establishing a business and hiring employees in Australia, it is advisable to examine the possibility of the business’s success before investing many resources into settling in the country, by using the following means:
- Sales representatives
Sales representatives can assist with opening doors in the business sector, as well as reaching target audiences in order to market and sell the product or the service. Before establishing a business infrastructure, a local team of experts can test the sales potential.
- Distribution and exclusivity agreements
This method has a notable advantage – the company does not have to establish a proper business infrastructure until it is sure it will be worthwhile. Moreover, until the expiration of the agreement, the company can settle for a limited representation in the country, and by doing so – reduce the costs.
The Israeli company can work under the foundation of a successful company in the same field as a franchisee. Thus, the company will be able to distribute their product under a well-known brand, using the distribution network of a local company, and swiftly break into the local market.
- Management and placement services
It is possible to operate in Australia without establishing a legal entity and without direct employment! By using management services of a company that provides global business solutions, it is possible to provide services in the country whilst reducing the involvement with local bureaucracy.
Services such as outsourcing, payroll, employment, etc., enable companies to operate in Australia while maintaining maximum business flexibility. In case the Israeli company decides to settle in Australia in an orderly manner – by establishing a legal entity and hiring employees with direct employment – it can do so as well and use the business solutions offered by the management company.
Adecco Israel – The ideal partner for expanding business activity to Australia
Adecco is a business solution management company, that provides services to its clients in 66 countries around the world, including Australia. Adecco offers many services, such as market analysis, financial counseling, recruitment and placement services, employment through payroll services, outsourcing, and so on.
Adecco Israel will save your company the need to establish a legal entity in Australia and provide you with assurance that your business complies with the local bureaucratic requirements in Australia.
Contact us and we would love to help you expand your business activity to Australia, while saving time and resources, minimizing unnecessary risks that stem from lack of familiarity with the local market and its laws, and most importantly – we will help your company expand its activity at a global level, while maximizing profits!
Contact us and we would be happy to be at your service!