An EOR helps businesses hire employees in Australia without needing a local entity, while a PEO provides HR services like payroll and benefits management for businesses that already have a legal entity in Australia.

The hiring process in Australia can vary greatly depending on the complexity of the position, the industry, and the company’s specific hiring practices. However, a general timeline might include job advertisement (1-2 weeks), application review and shortlisting (1-2 weeks), interviews and assessments (1 week), reference checks and final selection (1 week), and the offer and onboarding process (1-2 weeks). So, it could take anywhere from 4 to 6 weeks or more to hire an employee in Australia.

Yes, a foreign company can hire employees in Australia without a local entity by partnering with an EOR. The EOR acts as the legal employer and takes care of all the local compliance, payroll, and employment matters on behalf of the foreign company. This allows the foreign company to hire and manage employees in Australia without the need to establish a local legal entity.

An EOR helps manage the payment of social security and taxes for employees in Australia by registering the company for Pay As You Go (PAYG) withholding for income tax and ensuring that the correct amount of tax is deducted from employee wages. The EOR also manages the payment of the Superannuation Guarantee, which is a compulsory retirement savings contribution that employers must make for their employees. The EOR ensures that these payments are made in compliance with Australian laws and regulations.

Under the National Employment Standards (NES) in Australia, full-time and part-time employees are entitled to a minimum of 4 weeks of paid annual leave per year. This is a baseline requirement, but modern awards or enterprise agreements may provide for more than this minimum entitlement. Some employees may receive between five to six weeks of paid annual leave based on their employment conditions. Employees accrue annual leave entitlements based on their ordinary hours of work.