Doing business in Australia

Expanding your business into Australia requires understanding local employment laws and industrial relations. Our expert legal guidance ensures smooth operations and compliance for successful market entry.
Doing business in Australia Enquire Now

Unlocking success in Australia

Expanding into a new country or jurisdiction can present unexpected challenges. For foreign businesses entering Australia, navigating the country’s industrial relations system can be particularly complex.

 

However, meeting your employment obligations and establishing sound employment practices are crucial to the success of your Australian operations.

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What you need to know

1

When does the Fair Work Act 2009 apply to your business or employees?

The Fair Work Act 2009 (FW Act) applies to all companies incorporated in Australia and their employees within the country, as well as to employees of foreign corporations operating in Australia. Additionally, the FW Act can extend to employees working abroad, particularly in cases where:

 

  • Employees of foreign businesses have their primary place of work in Australia but occasionally work in other countries.
  • Employees are employed by companies managed and controlled in Australia, even if they are located outside the country.

2

What are employee’s entitlements under the Fair Work Act 2009?

The Fair Work Act 2009 (FW Act) establishes minimum employment conditions for all employees, known as the National Employment Standards (NES). The NES include:

 

  • The maximum weekly hours an employee can be required to work.
  • The right to request flexible working arrangements.
  • Entitlements to parental leave, annual leave, personal leave, compassionate leave, community service leave, and public holidays.
  • The right to receive notice if employment is terminated.
  • The right to redundancy pay if employment ends due to redundancy.

 

Additionally, the FW Act introduces Modern Awards, which set further minimum employment conditions, such as minimum wages and additional pay rates for evening, weekend, overtime, and public holiday work, specific to various occupations and industries.


For example, the Banking, Finance, and Insurance Award 2010 outlines minimum employment conditions for clerical, technical, and middle-management employees in these industries.


The FW Act also provides protections for employees who are unfairly dismissed, bullied, or adversely treated for exercising their “workplace rights” under the NES or a Modern Award.

3

What are the consequences of failing to comply with the Fair Work Act 2009?

Failing to understand or comply with your obligations under the FW Act, NES, or Modern Awards can lead to employees filing legal claims against your business. This may result in significant financial penalties—up to $54,000 for the business and up to $10,800 for individual decision-makers.


Directors may also be held personally liable for unpaid employee entitlements if found to be accessories to a breach.


MDC Legal helps a wide range of employers ensure their businesses comply with the Fair Work Act, State legislation, and workplace awards and agreements.


Our expertise can help you minimise employment law risks and avoid costly non-compliance consequences. For employment law, workplace law, or HR assistance, contact MDC Legal on (08) 9288 4000.