Can employment agreements be backdated in Australia?
Employment agreements can be backdated in Australia to a certain extent, and typically we can backdate within the month. In Australia, an employee must legally be paid at least once a month, so if we are past our internal cut-off for new joiners, we can no longer backdate within that month.
Can a supported employee work before their start date?
It is not advisable for your supported employees to start working before their start date, as statutory and workers' compensation insurance do not cover them during this period.
Can we pay the salary in a different currency than the local currency?
No, the salary must be paid in Australian dollars (AUD). Salaries cannot be paid in United States dollars (USD) or any other currency.
Should we classify our talent as a contractor or an employee?
In simple terms, classification status comes down to whether the individual is in business for themselves or under your company's control. Whether the individual is an independent contractor or an employee can sometimes be complicated and will come down to the circumstances of each working arrangement.
Specifically, courts look at the following factors to determine whether an individual is an employee or a contractor:
- Whether or not the individual exclusively provided services to the company
- The degree of control the company had over the individual’s work (including where, when, and how to perform the work under the employment agreement)
- Whether the individual was required to supply their own tools and equipment
- Whether the individual hires their own helpers to complete necessary duties
- The degree of business risk taken by the individual (e.g., their chances for profit and risk of loss)
- The degree of integration between the individual’s activities and the company’s business.
An employer has to be extra careful when it comes to classification status as misclassification may lead to legal liabilities/penalties.