AustraliaGrowing your business and hiring employees in Australia?
Understanding working hours regulations and labor laws in Australia is crucial for employers, especially when hiring in-country employees from abroad. These laws ensure fair treatment, promote work–life balance, and protect worker well-being. By adhering to the working hours and other employment regulations, you can maintain compliance, avoid penalties, and foster a positive work environment.
Standard working hours in Australia
The standard full-time working hours in Australia are a maximum of 38 hours per week, typically spread across five days from Monday to Friday. The standard workday for office jobs is usually from 9 AM to 5 PM, with a 30–60 minute lunch break. For trade occupations, the day often starts at 7 AM and ends at 3:30 PM. Part-time employees work less than 38 hours per week, with consistent hours each week.
Overtime regulations
Overtime in Australia is regulated under the Fair Work Act, 2009. Overtime in Australia is defined differently under each Modern Award and enterprise agreement. Typically, it is an hourly rate of 150% for the first 2 hours and 200% for each hour after that.
Employers can request employees to work a reasonable amount of overtime, but employees have the right to deny the requests. Employees asked to work more than 38 hours per week are to be compensated either through overtime pay or paid time off.
Flexible working arrangements
Under the Fair Work Act 2009, employees who have worked with the same employer for at least 12 months can request flexible work options. These options can include changes to hours, patterns, or locations to better manage their personal and professional lives.
Eligible employees include parents, care-givers, people with disabilities, those aged 55 or older, and individuals affected by domestic violence. Casual employees may also request flexibility if they’ve worked regularly for 12 months.
While there is no legal entitlement to a 4-day work week, some Australian companies are trialing it based on the UK’s 4 Day Week Global program. Employers and employees can negotiate individual flexibility agreements or enterprise agreements to adjust working hours if it benefits the employee.
Breaks and rest periods
Breaks vary according to the industry and the applicable modern award or enterprise agreement. Full-time employees working between seven to 10 hours a day are entitled to two paid rest breaks of 10 minutes and one unpaid meal break of 30–60 minutes.
Typically, employees are also entitled to a minimum break of 12 hours between shifts, which can be reduced by agreement between the employer and employee to 10–12 hours.
Night work and shift work
Night shifts are typically considered as work performed between 11 PM and 6 AM. Some awards set higher hourly rates for night shifts, known as penalty rates. For example, in the Security Award, full-time and part-time employees receive a 130% penalty rate, and casuals receive a 155% penalty rate.
Employees working night shifts may be entitled to additional payments or benefits outlined in relevant awards or agreements, such as penalty rates or night shift allowances. The specific rules and compensation for shift work can vary depending on the industry and applicable agreements.
Employees have the right to be informed about their shift work arrangements, including rosters and applicable penalties. Some awards may require higher pay rates for weekend work or shift work, and may also limit the frequency or predictability of weekend rosters.
Part-time and minor employment
Part-time employees work less than 38 hours per week, but typically with consistent hours each week. Specific rules regarding part-time work hours exist, but the details can vary depending on the industry and applicable agreements.
There are several laws that regulate the employment of children and young people in Australia, including the minimum age to work, which varies by state, with some states having no age restrictions and others having a minimum age of 13 or 15. There are also restrictions on the number of hours children can work, depending on whether they are in school and on the day of the week.
Compliance and penalties
Employers must keep complete and accurate records of employee work hours in English, legible, and in a form able to be inspected by a Fair Work Inspector.
Not having the records available for inspection may lead to fines of $18,780 per violation for an individual and $93,900 per violation for a business.
Australia has introduced a “right to disconnect” law, which lets workers ignore calls or messages from their employer after hours without punitive action.
Cultural considerations
Understanding the cultural nuances related to employment in Australia is essential for fostering a productive workplace. Australian employees prioritize work–life balance, typically working around 7.5 to 8 hours a day while valuing flexibility in their schedules.
Australia also has generous leave policies and public holidays, which employers should accommodate to promote employee well-being.
Moreover, Australia’s multicultural workforce brings diverse attitudes toward work hours, with employees from various backgrounds having unique practices regarding breaks and family obligations.
Get started with Multiplier’s Employer of Record (EOR) services
Multiplier makes it easy to manage your employees in Australia. With our global payroll and EOR platform, you can recruit employees in Australia without the need to establish a local entity. We take care of all HR responsibilities, including compliant contracts, payroll, working hour regulations, and administrative tasks.
Multiplier lets you concentrate on growing your business and managing a team in Australia without having to worry about compliance.
Book a demo with Multiplier’s experts to discover how we can help you expand your team in Australia.
