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Australia — Business: Hiring Employees

Hiring employees in Australia is governed federally by the Fair Work Act 2009, which sets 11 National Employment Standards (NES) as a legal floor no contract or award can undercut. Businesses with fewer than 15 employees are classed as "small business employers" and get modified unfair-dismissal rules (12-month qualifying period instead of 6, and the Small Business Fair Dismissal Code) plus an exemption from redundancy pay — not a blanket exemption from Fair Work law. There is no "Notice of Election" document in Australian employment law; employers must instead give new employees the Fair Work Information Statement.

VerifiedGovernment / official sourceFair Work Ombudsman (fairwork.gov.au) official guidance on the National Employment Standards and small business provisionsLast reviewed: 2026-08-31

Why this matters

Getting employee classification, minimum entitlements, and small-business thresholds wrong exposes a business to Fair Work Ombudsman enforcement, back-pay orders, and penalties.

Key facts

  • Employers register for an ABN and, once they have employees, must register for PAYG withholding with the ATO — there is no fixed 28-day deadline for ABN registration itself, but PAYG withholding registration should occur before the first pay run.
  • A "small business employer" under the Fair Work Act is one with fewer than 15 employees (by headcount, including associated entities); this changes unfair dismissal qualifying periods (12 months instead of 6) and exempts the employer from redundancy pay — it does not exempt them from the National Employment Standards or minimum wage generally.
  • Employers must give every new employee the Fair Work Information Statement (and a Casual Employment Information Statement for casual hires) — there is no "Notice of Election" requirement in Australian law.

Steps

  1. Step 1: Determine Business Structure — Decide on the business structure (e.g. sole trader, partnership, company) and register accordingly. This will affect employment laws and regulations.
  2. Step 2: Register with Relevant Authorities — Register the business with the Australian Business Register and obtain any necessary licenses or permits.
  3. Step 3: Meet minimum entitlements and reporting obligations — Provide the Fair Work Information Statement at the start of employment, pay at least the applicable award/minimum wage, register for PAYG withholding and Single Touch Payroll (STP) reporting with the ATO, and pay superannuation guarantee contributions (12% of ordinary time earnings from 1 July 2025).

Costs

  • Australian Business Number (ABN) registration: free
  • Superannuation guarantee contribution: 12% of ordinary time earnings (rate from 1 July 2025, the final legislated increase)

Timelines

  • Registering a business: often same day to a few business days online
  • Ongoing employment compliance (NES, super, STP reporting): ongoing

Required documents

  • Fair Work Information Statement (and Casual Employment Information Statement, if applicable)
  • Employment contract or letter of offer
  • Tax file number (TFN) declaration and Superannuation Standard Choice form from the employee

Common mistakes

  • Assuming a "Notice of Election" or similar document is required — this is not an Australian employment law requirement
  • Believing small businesses (under 15 employees) are broadly exempt from the Fair Work Act, when only specific provisions (redundancy pay, unfair dismissal qualifying period) differ
  • Failing to pay the current superannuation guarantee rate or report correctly through Single Touch Payroll

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