Employment law in Australia

Australia is a popular destination for young professionals, with plenty of job opportunities in cities such as Melbourne and Sydney. Employment law in Australia is well-developed, with regulations covering wages, work hours, parental rights, and much more.

This guide covers all the essential topics, with sections on:

Labor law in Australia

Australia’s labor rights situation has notably improved in recent years. It is among the most improved countries on the 2025 Global Rights Index, rising from grade 3 (regular violations) to level 2 (repeated violations). This means it ranks between 8–30th place globally. It also scores 87/100 on the 2024 Labour Rights Index, indicating improvement.

Key legislation is the Fair Work Act 2009, which underpins current National Employment Standards (NES). The Fair Work Commission oversees national standards such as wages and work hours, while the Fair Work Ombudsman investigates breaches of the law. Additionally, the Department of Employment and Workplace Relations provides support in areas such as skills and training.

Recent policy updates include increasing parental leave from 24 to 26 weeks from July 2026.

Foreign workers – your right to work in Australia

People from other countries who want to work in Australia will generally need a work visa. Many skilled migration visas operate under a points-based system, where eligibility is assessed based on factors such as age, qualifications, work experience, and English language ability. Other visas require employer sponsorship and a job offer.

If you wish to change jobs, you should check your visa conditions, as some employer-sponsored visas restrict you to working for your sponsoring employer. Australia also offers Working Holiday visas for eligible young people, allowing them to travel and work for up to 12 months.

Foreign workers in Australia generally have the same employment rights as Australian citizens.

Employment contracts in Australia

Employees in Australia should receive an employment contract, which is usually a written agreement. Contracts provide the details of employment, responsibilities of both employer and employee, and a guarantee of the minimum NES for workers.

Common contracts include:

• Open-ended Contracts: Also called permanent contracts, these can be full-time or part-time and are not for specified time periods. Contracts should state probation periods, notice periods, and terms of dismissal.
• Fixed-term contracts: For a specified time period, usually a maximum of two years since the 2022 Fair Work Legislation Amendment Act.
• Casual contracts: Where work hours are not guaranteed (called zero-hours contracts in places like the UK).
• Independent contractor agreements: For freelancers and self-employed workers rather than employees, where workers don’t get benefits such as paid leave and have to arrange their own tax and social security.

Wages and salary in Australia

All employees in Australia are entitled to at least the national minimum wage, which is set by the Fair Work Commission each July. The current national minimum wage, set on the 1 July 2025, is AUD 24.95/hour (or AUD 948 for a full working week).

In addition to this, many industries have awards or agreements which entitle employees to higher rates and other work-related benefits.

Certain groups are entitled to different rates (‘special minimum wages’) rather than the standard minimum wage. These include:

• Apprentices and trainees
• Junior employed (aged under 21)
• Employees with certain disabilities

You can use this pay calculator to work out your hourly or weekly wage entitlement.

Overtime pay rates vary depending on the relevant award or agreement and commonly range from 150% to 200% of the ordinary hourly rate.

If you’re receiving your salary in AUD but need to send money back home or manage finances in multiple currencies, consider the exchange rates and fees you’ll pay. Using Wise, you can hold and convert money in 40 currencies, and send international transfers with transparent fees and the mid-market exchange rate.

Work hours in Australia

Employment law in Australia sets out the maximum hours a person should work each week. This is 38 hours per week, unless:

• An award or enterprise agreement specifies different hours
• The employee agrees to a reasonable request to work more hours per week

Rules around breaks during the day or between shifts are mostly set by agreements and awards. These typically consist of an unpaid meal break (30–60 minutes) and 1–2 paid rest breaks (10–15 minutes each) for a full 7–8 hour day. Rests between shifts are usually 10–12 hours, otherwise overtime pay rules apply.

Employees who have worked for an organization for at least 12 months have the right to request flexible hours, including reduced hours, for certain reasons (e.g., family reasons). Since 2024, workers have had the “right to disconnect” from work (not engage with work-related contact) outside of working hours.

Paid and unpaid leave in Australia

Holiday pay in Australia

National employment law in Australia allows for a minimum of four weeks annual leave per year for full-time work. Individual contracts can increase this but they cannot grant less. Holiday entitlements accumulate pro-rata from day one, with part-time workers receiving entitlements based on their work hours.

Employees in Australia can carry forward unused holiday into subsequent years. Some agreements may allow for the exchange of annual leave for salary (known as ‘cashing out‘).

Australia has eight national public holidays a year. Individual states may also have additional holidays. Employees are generally entitled to be absent and paid for their ordinary hours on public holidays, unless reasonably required to work.

Sick pay in Australia

Full-time employees in Australia receive at least 10 days of paid sick and carer’s leave per year if they are sick or need to look after a family member who is sick. Part-time employees receive the pro-rata equivalent but casual workers are usually not entitled to paid sick leave. The minimum payment is the base pay rate for their normal hours.

Any payment beyond the minimum entitlement period is based on awards, enterprise agreements, or individual contracts. If no provision is in place, sick leave beyond 10 days is usually unpaid.

Employees are protected from dismissal because of temporary illness or injury for the first three months of sick leave, provided appropriate evidence is given.

Other forms of paid leave in Australia

Other forms of paid leave in Australia include:

• Compassionate and bereavement leave: Up to two days at a time for circumstances such as family deaths or life-threatening illnesses/injuries.
• Family and domestic violence leave: Up to 10 days to deal with instances of violent, threatening, or abusive behavior.
• Community service leave: Up to 10 days for jury duty.
• Long service leave: After a long period working for the same employer (entitlements vary across states and territories).

Unpaid leave in Australia

The NES stipulates unpaid leave entitlements for:

• Parental leave: Up to 12 months unpaid leave for employees who have worked for an employer for at least 12 months.
• Carer’s leave: Up to two days per occasion once paid leave has been used up.
• Compassionate leave: Available for casual staff, who don’t have paid compassionate leave entitlements.
• Community service leave: For jury service beyond 10 days and for voluntary emergency management activities.

Employees can request additional unpaid leave for reasons not covered by the NES, although it is up to the employer whether or not to grant the request.

You can use this calculator to work out your leave entitlements.

Parental rights in Australia

Australia has strong maternity rights and scores a full 100 points for this on the 2024 Labour Rights Index.

Your rights during your pregnancy

Pregnant workers in Australia receive a number of special entitlements and protections, including:

• Flexible paid and unpaid leave
• Other flexible work arrangements (e.g., work hours, working from home)
• Right to transfer to a safe job if the current job poses a risk to health or safety
• Protection from dismissal or discrimination based on their pregnancy

Maternity and paternity leave in Australia

Both parents can access up to 12 months of statutory parental leave in Australia, although only a maximum of eight weeks can overlap. Each parent can also request an additional 12 months, which employers can only refuse on reasonable business grounds.

Expectant mothers can start their parental leave up to six weeks before the due date. Both parents should give at least 10 weeks’ notice for their leave.

The government provides parental leave pay for 24 weeks (increasing to 26 weeks in July 2026). This is at the national minimum wage amount, split between both parents. Employers can provide additional payments if they wish.

Social security and tax in Australia

Employees in Australia pay income tax and the Medicare levy through payroll deductions. Income tax is progressive, with rates ranging from 0% up to 45% depending on income. The Medicare levy is generally 2% of taxable income, although low-income earners may receive reductions or exemptions.

Higher-income earners without eligible private hospital insurance may also pay the Medicare Levy Surcharge.

Employers are required to withhold tax through the pay-as-you-go (PAYG) system and remit it to the Australian Taxation Office.

In addition, employers must make compulsory superannuation contributions (retirement savings) on behalf of employees. These contributions are generally paid on top of salary. Employees may choose to make additional voluntary contributions.

Protection from discrimination at work in Australia

It is illegal to discriminate against workers in Australia on various grounds. Key pieces of legislation include the 1984 Sex Discrimination Act, 2009 Fair Work Act, and 2021 Fair Work Amendment Act.

Employees have protection against discrimination on the grounds of attributes including:

• Race
• Sex
• Sexual orientation
• Age
• Disability
• Gender identity
• Religion
• Political opinion

Discrimination can include hiring, firing, or treating someone differently based on the above characteristics. Australian law recognizes the following types of discrimination:

• Direct discrimination: Treating an individual unfairly on the basis of certain characteristics.
• Indirect discrimination: Putting rules or procedures in place which may disadvantage or be a barrier to certain groups.
• Harassment: Including sexual harassment
• Victimization: Treating someone unfairly because they’ve complained about discrimination.

If you experience discrimination in the workplace in Australia, you should first try and resolve it internally with your employer. If this doesn’t work, you can take the matter to the Australian Human Rights Commission (AHRC) or the Fair Work Commission.

Joining a union in Australia

Every employee has the right to join a trade union under employment law in Australia. You can choose which union you join. Just over 13% of the Australian workforce belongs to a union (2024).

There are three main types of union in Australia: industry unions, occupational unions, and general unions. The biggest unions include:

• United Workers Union (UWU)
• Australian Workers Union (AWU)
• Transport Workers’ Union (TWU)

The Australian Council of Trade Unions (ACTU) is the main representative body, covering nearly 40 unions.

Unions represent members in workplace matters and engage in collective bargaining with employers. Industrial action is lawful only if it qualifies as “protected industrial action” under the Fair Work Act. Employees are generally not paid during periods of protected industrial action.

Health and safety at work in Australia

Australia scores 100% for safety at work on the 2024 Labour Rights Index. The national policy body Safe Work Australia oversees regulations and created the Model Work Health and Safety Act. Rules ensure that employees have the right to:

• A safe workplace
• Information and training to do jobs safely
• Refuse unsafe work
• Protection from psychosocial hazards such as bullying and overwork

All employers in Australia must have Workers Compensation Insurance to cover employees against work-related illnesses and injuries.

100% on safety at work on 2024 labour rights index; workers compensation; Safe Work Australia – Model Work Health Safety Act;

Training and development in Australia

Employees have a legal right to workplace health and safety training in Australia. There is no automatic right to skills or development training, however some awards and enterprise agreements include employer-funded training.

The situation is different for apprentices and trainees, where employers must provide structured training and allow time for external training.

The Department of Employment and Workplace Relations supports employers and employees with skills and training in Australia.

Terminating the employment relationship in Australia

Dismissals and redundancy

Employers must provide employees with a written notice period if they want to terminate the employment contract. The NES minimum notice periods are:

Period of continuous service	Minimum notice period
1 year or less	1 week
1–3 years	2 weeks
3–5 years	3 weeks
5+ years	4 weeks

Employees aged 45 and over who have completed at least two years of continuous service are entitled to an additional week of notice.

Employers can make employees redundant if there is no longer a need for the job position. However, they cannot hire a new employee in replacement to do the same job. Employees of organizations with 15 or more paid staff must offer redundancy pay to employees who have worked for at least 12 months. The NES minimum payments are:

Period of continuous service	Redundancy pay
1–2 years	4 weeks
2–3 years	6 weeks
3–4 years	7 weeks
4–5 years	8 weeks
5–6 years	10 weeks
6–7 years	11 weeks
7–8 years	13 weeks
8–9 years	14 weeks
9–10 years	16 weeks
10+ years	12 weeks (reduced as long service leave usually applies)

Leaving a job voluntarily

You can resign from your job at any time, however you may have to serve a notice period that should be detailed in your contract. If you leave without serving the notice period, your employer may be able to deduct unworked time from your final pay packer.

When you resign from a job, it’s a good idea to put it in writing outlining your reasons for leaving and the date you would like to leave.

Retirement

The retirement age in Australia is currently 67 years. This is the age at which you can take the Age Pension if you meet all other requirements. Employees can take early retirement. They won’t have access to the Age Pension until age 67, but they can access their Superannuation from age 60 (or between 55–59 if born before 1 July 1964). Employees can work past retirement age if they wish, and employers cannot dismiss someone based on their age.

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Temporary, part-time, agency and informal workers in Australia

Part-time employees (those working less than 38 hours a week) have the same rights as full-time employees in Australia, although pay and benefits are typically pro-rata.

Fixed-term contract employees have most of the same NES rights as permanent staff. However, they typically can’t access redundancy pay. They also don’t get a notice period for dismissal, unless the employer terminates the contract early. Under employment law in Australia, the maximum length for most fixed-term contracts is two years.

Casual employees have some of the NES rights, such as minimum pay and maximum work hours. However, they generally don’t get paid leave, notice, or a guarantee of ongoing work. Casual employees can become permanent at any time if both employer and employee agree to it.

Making a complaint as a worker in Australia

If you wish to complain about your employer in Australia, you should firstly try to resolve the issue internally by speaking to your manager or HR department. Most organizations have a workplace grievance procedure for staff to follow.

If this doesn’t resolve things, you can lodge a formal complaint with one of the following:

• Fair Work Ombudsman – for issues relating to wages or leave
• Fair Work Commission – for unfair dismissal, discrimination, or general workplace protection
• Your state WHS regulator – for workplace health and safety concerns
• Australian Human Rights Commission – for discrimination and harassment

Useful resources

• Fair Work Ombudsman (FWO) – regulates workplace relations and investigates law breaches in Australia (accessed 27 Feb 2026)
• Fair Work Commission (FWC) – oversees the National Employment Standards (accessed 27 Feb 2026)
• Department of Employment and Workplace Relations (DEWR) – government department dealing with employment relations, skills, and training (accessed 27 Feb 2026)