Introduction
Hiring remote employees in Australia through an Employer of Record (EOR) offers an efficient way for international companies to expand without establishing a local legal entity. A critical part of this process is sending a compliant and professionally structured job offer letter. This guide covers every aspect — from offer creation to legal compliance under Australian employment law — for hiring through an EOR model.
Key Takeaways
- A job offer letter serves as a formal, non-binding communication outlining job terms and conditions.
- Under the EOR model, the local partner in Australia generates and issues compliant offer letters.
- Australian employment laws, including the Fair Work Act 2009, dictate minimum standards that must be reflected in the offer letter.
Job Offer Letter & Onboarding Flow for a Remote EOR Employee
- Client defines job details: role, compensation, benefits, and work location (remote).
- The EOR drafts the job offer letter, ensuring compliance with National Employment Standards (NES).
- Candidate receives and reviews the offer electronically.
- Upon acceptance, the EOR begins onboarding: TFN declaration, superannuation setup, bank account details, and tax file verification.
- Ongoing communication ensures smooth induction and first-day readiness.
Offer Letter vs Employment Agreement in Australia
| Offer Letter | Employment Agreement |
|---|---|
| A written expression of intent to hire | A legally binding document outlining detailed terms |
| Contains basic terms and benefits | Must meet or exceed NES minimum entitlements |
| Can be rescinded before acceptance | Enforceable under Australian law once signed |
In Australia, it’s common to send a combined offer letter and employment agreement, especially through EORs, to ensure clarity and legal compliance.
When Must a Job Offer Letter Be Given?
- Ideally sent within a few days of the final interview.
- Include an acceptance deadline to formalize the process (e.g., “Please respond within 5 business days”).
- The letter should specify when employment starts, especially for compliance with NES and Modern Awards.
What Salary Needs to Be Mentioned in an Offer Letter?
Australian law requires clear disclosure of:
- Base annual salary or hourly wage
- Superannuation contributions (typically 11% of ordinary time earnings as of 2025)
- Award-based entitlements, if applicable
- Whether the salary is inclusive or exclusive of super
Use language like:
“You will be paid AUD 80,000 per annum plus superannuation at 11%.”
Job Offer Letter Checklist for Australia
✅ Job title and job classification under applicable Award
✅ Start date and employment type (full-time, part-time, casual)
✅ Reporting manager and work arrangement (remote/in-office)
✅ Remuneration (base pay + super)
✅ Work hours and days
✅ Annual leave and other paid entitlements
✅ Termination notice period
✅ Confidentiality and IP clauses
✅ EOR entity name as legal employer
✅ Signature fields
Download Your Job Offer Letter Template for Australia
We offer a customizable and compliant .docx template that includes:
- Language aligned with Fair Work Australia requirements
- Space for superannuation details and Award classifications
- Remote work arrangements and equipment clauses
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FAQs
- Can I resend my offer letter?
Yes. If edits are needed, issue a revised letter clearly marked as such. - What is the usual notice period for candidates in Australia?
Generally 1 to 4 weeks depending on tenure and contract terms. - When do I mention company policies in the offer letter?
You can refer to the Employee Handbook or state that policies apply upon commencement. - Can I revoke an offer letter?
Yes, but it must be done before acceptance and with clear communication to avoid legal risks. - How to revoke an offer letter I sent?
Notify the candidate in writing. Include the reason if appropriate, and keep records. - Who is considered an independent contractor under Australian law?
Someone who operates their own business, has control over work methods, and carries their own liability. - What is the importance of a contractor agreement?
It prevents sham contracting and outlines clear scope, payment, and termination terms. - What is a PEO in Australia?
Similar to an EOR, but may only co-employ. In contrast, EOR becomes the sole legal employer. - What should be included in an onboarding checklist?
TFN, super fund choice form, work eligibility documents, signed agreement, equipment checklist. - What is an Employer of Record (EOR)?
An EOR hires and manages legal compliance on behalf of a foreign company. - What is the onboarding process with an EOR?
Includes issuing the contract, payroll setup, super registration, and tax declarations. - What is the difference between contractors and employees?
Employees are entitled to paid leave and benefits under NES; contractors are not. - What are the costs of employment in Australia?
Base salary + 11% super + payroll tax (varies by state) + insurance and leave accruals. - How to calculate Cost to Company (CTC)?
CTC = Base salary + super + leave costs + insurance + payroll tax. - What is a take-home salary calculator?
Tool to estimate net salary after income tax, Medicare levy, and superannuation. - What health insurance options exist for remote employees?
Private providers like Bupa, Medibank, and AHM offer employer-sponsored plans. - How to create offer letters for remote hires?
Collaborate with your EOR. Share role details, and they’ll issue a compliant document. - What should be in the job title section?
Include Award classification if relevant and the full title like “Remote Customer Success Manager.” - Is health insurance included in offer letters?
Optional in Australia unless it’s part of a company benefit scheme. - Why is it important to detail job duties?
Helps avoid future misunderstandings and defines Award obligations. - What should the compensation package include?
Base salary, super, bonus structures, allowances (if applicable). - Why is an offer letter considered a formal document?
It captures mutual understanding prior to signing a binding employment agreement. - How important is the start date?
It marks the beginning of legal obligations and entitlements. - What role does the hiring manager play?
Provides job scope and coordinates feedback and onboarding with the EOR. - Should the letter specify full-time employment?
Yes. Also specify if the role is permanent, casual, or fixed-term. - What key elements should an offer letter outline?
Job title, classification, pay, super, hours, location, and entitlements. - What is “at-will employment” in Australia?
Australia does not have at-will employment. Terminations must comply with the Fair Work Act. - How to mention office location in remote roles?
State: “Remote – Based in [City, Australia]” or “Fully Remote.” - How can an offer letter reflect company culture?
Include a brief message about values, mission, or team expectations. - What does “at-will basis” mean?
It’s a U.S. concept and not applicable in Australia. - What should be included in a formal offer letter?
All legal and contractual terms, job description, and contact details. - Why are compensation details important?
They help candidates make informed decisions and prevent future disputes.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.