How to create offer letters for employees in Australia [2024]
When you hire an employee in Australia, one of the first things you’ll do is send an employment offer letter.
Keep in mind that Australia has more than 100 “Modern Awards”—legal documents outlining working conditions across the country’s different job categories. Your offer letter should be tailored to the minimum requirements of the Award that corresponds to your role’s underlying industry. If you’re unsure which Award applies, you can use the Australian government’s Pay and Conditions Tool.
You should also remember to provide a Fair Work Information Statement in addition to the job offer letter, which outlines minimum employment conditions and is legally required for new hires.
It’s crucial to get the employment agreement right: not only will it make the offer of employment and conditions of employment clear to the potential employee, but it will also help keep you compliant with labor laws in Australia so you can avoid costly legal disputes and penalties.
Here’s everything you need to send a legally compliant offer letter to hire a full-time employee in Australia before starting the onboarding process.
Australia job offer letter checklist
- Position (job title), job description, job duties, start date, and probationary period. You should explain that their suitability for their job duties will be evaluated during their probationary period. In Australia, probationary periods are decided by the employer and typically last from three to six months, but can extend to 12 months for more senior positions. Unfair dismissal laws come into effect after six months or after 12 months if the employer is a small business.
- Working hours and days. Outline the expected days and working hours and any overtime policies that the employee will be subject to. Under Australia’s labor laws, the maximum number of hours an employee can work per week is 38 hours, plus reasonable additional hours. Overtime rates vary depending on which Modern Award category applies, as different industries set different requirements.
- Compensation and benefits
- Salary. Specify the employee's salary or hourly compensation in AUD, along with any other compensation they may receive (equity compensation, bonuses, commissions, etc.).
- Equity. If applicable, specify any equity compensation they will receive. The most common types of equity compensation for employees in Australia are stock options and Employee Share Schemes.
- Benefits. Benefits could be outlined in the offer letter, but be sure to address them in general terms so that if they change in the future, an amendment to the offer letter isn't required. In Australia, the following benefits are mandatory for full-time employees (though not always listed in an offer letter): super guarantee (Australia's pension plan contributions), workers' compensation, vacation entitlements, statutory holidays, long service leave, sick leave, and parental leave.
- Vacation. The employment contract should include details about your company's vacation leave policy, especially if you offer more leave than the statutorily required vacation in the corresponding Award category. To learn more about leave and statutory holidays in Australia, read our guide to hiring in Australia.
- Payment frequency. Specify whether the employee will be paid weekly, fortnightly, or monthly. You should also mention the payment method.
- Termination policy. Clearly explain the terms of termination, including the notice that will be provided, and any conditions that may lead to termination. In Australia, employers generally can’t terminate an employee without first giving written notice of their last day. Minimum notice periods vary depending on an employee’s length of continuous service. Employers can pay terminated employees out through their notice period in lieu of letting them work until their last day.
- Confidentiality and non-disclosure. Include in the offer of employment a clause outlining the employee's responsibilities regarding confidentiality and non-disclosure of the company's information.
- Contact information and phone number.
- Other key details. If there are any other key details relevant to your company's policies and procedures, include them in the offer letter.
- If the offer is contingent on any conditions—like satisfactory results from a routine background check, signing company policies documents, proof of their eligibility to legally work in Australia—then list these out.
- Request that the employee signs and returns the offer letter to confirm their acceptance of the job before their start date.
- Non-compete and non-solicit agreements. Include provisions outlining the employee’s non-competition and non-solicitation responsibilities after leaving your company—but only if they’re appropriate for your employee and permissible in the relevant Modern Award category.
Onboard employees in Australia in 90 seconds with Rippling
Rippling can help you hire and onboard employees in Australia within minutes.
Just click "hire" and Rippling will automatically:
- Generate country-specific hiring agreements
- Run background check
- Verify minimum wage and leave requirements
- Add to locally compliant overtime policies
- Send IP agreement
- Enroll in country-specific benefits
- Assign country-specific compliance training
- Order, configure, and ship work laptop
- Set up third-party apps like Slack or Zoom
- Set up single sign-on
- Configure WiFi
- Add to payroll
- Issue and ship corporate card, and apply card limits and policies
Rippling is the only platform that offers everything you need to manage a global workforce, all in a single system.
Disclaimer: This content is for educational purposes only. It does not (and is not intended to) constitute legal advice. Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any related activities or transactions.
