Employer of Record Services

Hire Australian employees without a local entity

Our employer of record service allows you to hire rapidly and efficiently within the Australian marketplace, leveraging our existing employer of record entity.

Whilst setting up your own local entity gives you a strong presence with complete control in the Australian marketplace, there may be instances where our Employer of Record service is more suitable for your current needs.

Setting up your own local entity can take precious time and resources, and requires you to have a solid understanding of the regulatory and compliance obligations of employing staff here in Australia.

In contrast, our employer of record service allows you to hire locally within the Australian marketplace without the compliance burden of navigating regulatory and employment law compliance requirements here in Australia. Our specialist team across HR and finance allows us to handle local payroll, taxes, benefits, and compliance with care and due diligence – helping your employees feel as safe and secure as your business does.

Order Forms and Information Guides

We recommend getting in touch with us in the first instance to discuss your requirements. We can then provide an overview of our services and our schedule of fees for you to consider. You can contact us on contact@abnaustralia.com.au or by using the enquiry button here below.

Why use our Employment of Record (EOR) service?

World-class service: Get personalized service from our HR and legal experts during every step of your Australian hiring journey.
Easing international expansion: An Australian Employer of Record potentially removes the need to incorporate locally. This saves on the cost and compliance burden of establishing a subsidiary legal entity, and allows new employees to be onboarded within days rather than months.
Compliance with local laws: We do the work to understand local labour and tax laws so you don't have to. We take on the burden and risk of employing your international workforce. Our in-house compliance experts and local partners work to shield your business from ever-changing regulations.
Avoid employee misclassification: Some enterprises may be inclined to avoid employing staff altogether and instead engage those individuals as independent contractors. This is a risky move. If the tax or employment regulators, or courts, consider the true nature of the professional’s engagement to be employment, a company could have serious penalties and liabilities. As employees of an EOR are bona fide employees, there is a reduced risk of misclassification.
Ironclad IP and invention protection: Retain full ownership of your IP and invention rights in Australia
Our integration services model: ABN Australia is uniquely positioned as an integrated service provider across accounting, compliance, and HR including EOR services. This means we can match the right solution to your needs at any given time rather than forcing you into any one narrow solution.

Key Components of the Service

Our EOR service offering includes the following employee management components

Tax registration: Our EOR legal entity is registered with the Australian Tax Office authorities as the employing entity for all workers. This means we are required to withhold certain taxes from employee payments (namely income tax and payroll tax contributions). In addition, we are required to submit those amounts to authorities on a regular basis and comply with any reporting requirements.
Payroll processing: We process the payroll of all employees in line with the legal requirements applying in the relevant state or jurisdiction. This includes managing necessary deductions, garnishments, expense reimbursements and leave entitlements. The payment method and cycle will follow legal obligations, local customs and the wishes of the client company wherever possible.
Benefits and social contributions: We register with pension funds (superannuation funds), health insurance and workers compensation providers, and other providers of benefits for employees. This may be to comply with legal requirements for employers (that depends on jurisdiction), or it may be to provide benefits in addition to a legal mandate.
Employment contracts: We will employ staff under jurisdiction-compliant employment contracts. These may be permanent and ongoing, casual, or fixed/maximum-term employment contracts.
New Employee Vetting: We take steps to confirm proof of working rights and ability to meet the minimum requirements of the job.
Termination or re-hire: We facilitate termination of employees, on advice from client companies and when permitted under the law. Similarly, we can renew contracts on expiration.
Fast and painless onboarding: We simplify the new employee onboarding procedure for both employees and client companies.
Employee induction and periodic review: We take that extra step to ensure workers get off to a good start in their new role, understand the way we operate, and ensure a healthy and safe working environment during the course of their employment. Our ongoing review and engagement processes are designed to support the client to employee relationship.

Our philosophy to helping global businesses
ABN Australia has built its business by focusing on the needs of SME global businesses looking to expand their business presence into Australia. Globalisation and the advent of sophisticated internet-based technologies have meant the barriers are lower than ever for savvy global businesses to expand their business horizons and successfully navigate foreign regulatory landscapes to create value for their business.

The recent accelerated adoption of remote working tools and mindset, now means global companies are broadening their talent pool and recruitment initiatives to foreign jurisdictions as well. For global businesses looking to hire workers in Australia, our Employment of Record (EOR) offers an alternative solution to helping you access these benefits.

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What is an Employer of Record and why do you need one?

An ‘Employer of Record’ (EOR) is a third-party contracted by a client company to take on the core compliance responsibilities of an employer, as specified under the law. We can take on the legal responsibility for your employees and handle HR tasks related to employment including payroll, tax, benefits and compliance – removing the requirement for you to establish your own local legal entity.

Employer of Record solutions are often a more cost-effective, and more compliant, international expansion tool than setting up a separate company or subsidiary overseas.

How do you know if you need an Employer of Record service?

You need an Employer of Record service if:

You want to hire an employee in a country where you don’t currently have a legal entity.
You need to expand into new countries quickly and don’t have months to build out entities.
You don’t have internal expertise in global employment or local partners to ensure compliance.

What to look for in an Employer of Record Service?

Many Employer of Record service providers rely on third parties in the countries where they operate. Check whether your vendor uses any third-party intermediaries, which can cause delays, inconsistencies, and compliance risks.

ABN Australia is Australian owned and operated, and we maintain our own legal entity in Australia without relying on third parties, which ensures control, transparency, flexibility, and accuracy for everything from benefits to payroll and support.

Our EOR service is backed by a longstanding, highly respected accounting and compliance firm in ABN Australia, giving you and your employees great peace of mind.

Is Employer of Record legal?

In general, yes. The provision of employer of record services in Australia is effectively governed by labour hire licence legislation which differs depending on which state you wish to employ workers in. This legislation is rapidly evolving in Australia and ABN Australia remains compliant with all local laws and regulations.

Which industries use Employer of Record?

Any industry could potentially benefit from the use of EOR solutions.

Originally, EOR services were popular in the US for administrative, temporary and janitorial and cleaning staff, but they are now popular across all industries and all countries, increasingly more so in Australia.

What’s the difference between an Employer of Record (EOR) and a Professional Employer Organization (PEO)?

An Employer of Record acts as the employer on paper for your employees in countries where you do not have entities. A Professional Employer Organization (PEO) handles many HR tasks, such as managing payroll and benefits, but the employer is still responsible for managing compliance in each country.

How can we engage a worker in Australia if my business has no presence or establishment?

We can employ workers in Australia on our clients’ behalf. This means that if your company does not have a business entity in Australia, you can still legally employ local workers. Our clients do not have to form a local entity under our employer of record service. That is one of the core benefits of our EOR service delivery mode.

Is an EOR always suitable?

When expanding globally, some organizations wish to do more than simply hire local staff: For example, they may wish to enter into supply contracts under local law, or apply for government subsidies that require a business to be incorporated in that country.

In that case, an enterprise will need to establish themselves locally, rather than simply relying on an EOR solution.

Will we need to set up bank accounts in Australia?

No, Australian banking facilities and local funds are not required.

How do we know what benefits we have to provide for the worker?

All statutory benefits to be provided to workers is handled through our local entity, which is administered by the professional staff of ABN Australia. Clients receive a copy of all employment agreements, payslips, and other statutory returns produced.

Can’t I just engage the worker as an Independent Contractor (IC)?

Employment laws around independent contractors can be complex in Australia, and there are significant risks associated with this. If the relationship with a contractor becomes strained, then the worker could potentially claim they are an employee. If you haven’t taken steps to confirm and guarantee that, then not only might you find yourself with a large severance claim but also having actions filed against you for wrongful dismissal and even corporate tax exposure. If taking on workers as independent contractors, you need to be absolutely sure they are not inadvertently captured under employment laws in Australia.

How can I pay my foreign worker compliantly?

Quickly and easily! Through our employer of record service, we are responsible for managing payroll compliance and ensuring both the worker, superannuation funds, and the local tax authorities are paid correctly and on time. All you need to do is to agree what to pay the worker, have them sign the approved in-country worker contract, adhere to the agreed upon payroll schedule and leave the rest to us.

What type of employment contract should I be providing to the worker?

The type of employment contract you offer the worker will typically depend on the reason you wish to engage them. Depending upon what is legally acceptable in country, we offer clients the flexibility of multiple contract types, from short-term project-based to indefinite long term workers. We work with each individual client to understand their needs and guide them to the most appropriate solution.

How can I make my remote foreign worker feel like they are part of our organization without having to register the company in that country?

From the moment the worker receives the welcome letter from us introducing the employment relationship, they understand that they are being supported by both us and our client’s organization. Our administrative service is here to support the worker, while your company still provides the strategic direction needed to make the employee feel they are a part of your business.

How do we terminate a worker compliantly?

Terminating employment can be very difficult. In most cases, considerable justification will be required and there might not even be a compliant method for terminating at that point. We work collaboratively with our clients to achieve their desired outcomes in the most efficient manner possible. We will work to understand your situation and reasoning and then advise on the best course of action based upon what is legally permissible.

Can you source Australian talent for us?

Absolutely – yes! Our inhouse recruitment team can facilitate this process, helping you navigate the Australian marketplace with efficiency and effectiveness. We charge a separate fee for this service.

How many workers do we need to use EOR services?

We do not currently have a requirement for a minimum number of employees.

Will engaging a worker in this model protect our business from the risks of Permanent Establishment (PE) in Australia?

Permanent Establishment is a fixed place of business which generally gives rise to income or value added tax liability in a particular jurisdiction. With our employer of record service, our clients have no need to establish any form of fixed business presence in the country they wish to engage a worker in. In most cases, this will protect clients from the risk of Permanent Establishment. However, each case is different, and it is recommended that clients seek tax advice on this matter.

How long does it take to onboard a worker?

When engaging a worker, we can on board workers in as little as two weeks. A standard implementation timeline is three to five weeks, and clients work closely with their client service representative to agree on a schedule.

How can we protect the Intellectual Property (IP) that worker produces?

Our firm helps our clients protect their Intellectual Property (IP) by introducing clauses as needed into the workers’ employment contracts. We tailor these contracts to meet each client’s individual needs and simply ensure that they are compliant with local employment legislation. Existing IP agreements can be added as addendums to employment contracts where it is acceptable to do so.

How are the workers day-to-day duties managed?

The day-to-day activities of the worker are driven and managed by the client, just as they would manage any other employee in their organization. Our firm manages the administrative employment aspects of the relationship such as the statutory requirements and payroll.

If a company currently has legal entities already set up and wants to transfer to the your EOR model, can you support this?

In today’s economic climate, many companies are assessing the value and necessity of their international footprint and the many tax responsibilities that go along with international business entities. Where businesses do not technically require an entity, it may not make sense to have one, and as a result, we are seeing an increase in those who are looking to close down these offices in order to reduce costs, and limit their exposure and future risks.

Most companies have however developed talent at these locations that they might not wish to simply terminate or lose completely. In these circumstances our EOR solution provides the perfect answer. Rather than terminating these workers, clients can transfer the ownership of the worker(s) they wish to keep to our model, where they can continue their work with as little disruption as possible. In many countries there are strict processes to follow in order to achieve this compliantly and to ensure that the worker is treated fairly. We can provide initial investigative consultancy with each client to ensure that all statutory requirements are adhered to and that the client is protected from the risks associated with it. Additional fees may apply for this consultation.

How much does Employer of Record (EOR) cost?

For Employer of Record solutions, ABN Australia charges a one-off set up fee and subsequent monthly margin based on the salary amount. EoR costs are consolidated within that monthly charge, so there are no hidden costs. Full details of the solution are always included in the initial proposal document, giving clients a full understanding of the financial commitment before they sign off.

In delicate employment situations where external advice is needed to ensure absolute compliance, there may be one-off additional costs from external partners – but advice will only be pursued with full prior agreement from the client.

Are Employer of Record solutions more expensive than just setting up our own company?

The initial outlay of registering a new company might seem low, but the ongoing running costs are a long-term financial commitment. On top of local staff salaries and benefits, maintaining a company also requires regular expenditure on essentials such as premises, banking, business insurances, corporate taxes, utilities, local professional services and so on. Without local knowledge, there is also the possibility of unexpected costs such as fines for local non-compliance and late payment penalties.

An Employer of Record service means you simply pay a consolidated monthly margin to the EoR provider, who then takes on all employment duties in-country and has its own local company infrastructure in place. ABN Australia has an inhouse Compliance team and network of local partners who will ensure compliant employment where you may not have these resources.

If you want to dip your toe into a new market without the long-term commitment and costs of your own entity, Employer of Record is often the better value option.

Are Employer of Record solutions only used by large multi-nationals, or can my small business use it?

We understand SMEs also require overseas employment support – globalisation is no longer just the realm of large corporate companies. EoR solutions suit SMEs particularly well, as they provide access to the resources of an international company, without the financial and infrastructure requirements. ABN Australia’s EoR solutions do not have minimum headcounts – clients can secure our services for one worker, or as many as they need.

Will I lose control over managing the worker if ABN Australia becomes their Employer of Record.

An EoR solution doesn’t mean ABN Australia takes over all decision-making and management of the worker. Instead, we work closely with the client to carry out the administration of the worker’s employment, allowing the client to manage their day-to-day tasks as normal. ABN Australia is on hand to ensure compliant decisions are made, and should always be involved in situations such as terminations and disciplinaries as the local employer. Our approach is to avoid unbalanced relationships and welcome collaboration with the client.