Labor law is a legal field that includes legislation, case law and legal literature that regulate the legal relationship between an employer and his employees. It is a complex legal field that is treated differently in each and every country around the world. For example, there may be major differences in the rights granted to employees, including minimum wage, vacation days, pensions, differences in the rights of association, and so on.
Any business that is interested in expanding its business activity and providing services around the world, and especially in Australia – must be familiar with the customary labor laws.
Prior to starting to hire employees in Australia, there are a few issues that are important to be aware of.
Adecco Israel is a management company that provides business solutions to its clients in Australia and in 65 more countries worldwide.
What are labor laws? What are the unique characteristics of labor law in Australia? What are the implications of these characteristics on Israeli businesses? You can find the answers in this article!
What are labor laws?
Labor law regulates the legal relationship between an employer and his employees. It is a system of laws, legal literature and case laws that refers to every single detail within the employer- employee relationship. For instance, labor law specifies assessments that enable identifying the time when that relationship comes into effect. The existence of an employer-employee relationship affects the manner of conduct required of the business, for example, through complicated bureaucratic requirements, and as a result, it is important to know how to conduct the business.
In addition, most countries around the world have a legal system that provides minimal employee protection. These laws are called “protective laws”, and they are designed to bridge the power gaps between an employer and his employees.
The protective laws define minimum wage, the maximum working hours that an employee can work per day and per week, the minimum amount of vacation days, minimal health insurance, pension provisions, and so forth.
Moreover, labor laws define the constitutional rights that directly affect the manner of conducting a business in the country – including freedom of association, the right to strike, etc. As long as there is a strong labor union (that is entitled to declare a strike) in the sector where the Israeli business owners are interested in operating in – they must act with extreme caution.
What are the unique characteristics of Australian labor laws?
The main law that determines the employees’ rights in Australia is called “Fair Work Act 2009”. This act regulates the manner of conduct required from employers towards their employees in the workplace, including the minimum wage, a safe work environment, certain health insurances, prohibition of discrimination, and so on.
Every year a committee convenes to examine information regarding the accepted wage in the business sector. Based on the data, the committee determines the minimum wage that employers are required to pay to their employees for the following year. For instance, in 2020 the minimum wage was 19.84 Australian Dollars per hour (approximately 50 NIS per hour).
Furthermore, the act determines when an employee is considered a permanent employee, and thus to which rights he is entitled. Roughly speaking, permanent employees are entitled to all of the labor rights under the law.
Also, there is a law that is called “National Employment Standard”, that determines the minimal rights that must be provided to any employee, including a maximum of 38 weekly hours for full time employees, a 12 month maternity leave, up to 4 weeks of annual leave for full time employees, up to 5 weeks of annual leave for shift workers, and so on.
Among other things, the law also determines the dismissal procedure in an orderly manner, before terminating the employment of employees in a company.
What are the implications of these characteristics on Israeli businesses?
To Israeli business owners who are interested in expanding their business activity and providing their services in Australia, the legal situation has some implications on the recommended manner of conduct. Due to the strict bureaucratic requirements that apply to employers in Australia, a question arises as to whether it is worthwhile for the Israeli business owners to apply direct employment in Australia, and if so – in which cases?
There are many considerations that affect this question, and therefore it is worth dedicating a separate discussion regarding employment in Australia. There are a couple of ways to provide services in Australia. Employees can be hired directly, or by using a management company.
When deciding to hire employees in Australia, through services such as outsourcing or payroll services, you can enjoy the benefits of direct employment while reducing the need to deal with bureaucracy in the country.
Adecco Israel – who are we?
In-depth familiarity with the Australian labor law allows Israeli business owners to provide services across the country optimally, while saving time and costly expenses.
It is very important to choose the right partners for the business activity abroad in order to avoid possible mistakes. By using the services of a global business solution company – it is possible to maintain business flexibility and agility, avoid dealing with tedious local regulations regarding direct employment, and most importantly – maintain full independence while operating in Australia.
Adecco is a management company that offers business solutions at a global level, and operates in 66 countries around the world, including Australia.
Adecco provides its clients with end-to-end guidance and counselling, by using a wide range of services, including – employment services, payroll services, outsourcing, recruitment and placement services, direct employment, provision of services around the world without establishing a legal entity in the target country, consulting on local regulation, and so forth.
We help our clients to manage their business activity in Australia, without having to deal with the local regulations that arise when hiring employees.
Israeli business owners are able to operate in an efficient and economical manner, knowing that Adecco is taking care of their administrative and bureaucratic issues in the target country.
Contact us and we will help you expand your business activity in Australia!
We would be happy to be at your service!