Writing a compliant job offer in Australia
Reviewed by Mellow Editorial Team, HR & payroll content team
A compliant job offer in Australia does not need to be a lengthy legal document, but it must cover specific details to be enforceable and meet your obligations under the Fair Work Act. Get the key elements right from the start and you avoid disputes later.
Confirm the employment basis first
Before you write a single word, decide whether the role is permanent full-time, permanent part-time, fixed-term, or casual. This determines nearly everything else in the offer.
A permanent employee is entitled to the full suite of National Employment Standards (NES) entitlements — including four weeks of paid annual leave per year and redundancy pay scaled to years of service. A casual employee receives a casual loading in lieu of most leave entitlements and has different notice obligations. Fixed-term contracts have their own rules, including restrictions on back-to-back renewals that were tightened under the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act.
Getting the classification wrong is not a minor paperwork issue. Misclassifying an employee as casual when they work regular and systematic hours can lead to back-payment claims for annual leave and other entitlements.
State the remuneration clearly
Set out the base salary or hourly rate in full. Specify whether the figure is inclusive or exclusive of superannuation — this is a common source of confusion. From 1 July 2026, the Superannuation Guarantee rate is 12% of ordinary time earnings, paid into a complying superannuation fund, so if you quote a package figure, show the components separately.
Also confirm the pay cycle (weekly, fortnightly, monthly) and the method of payment. If any component of pay is variable — such as commissions, allowances, or bonuses — describe the basis on which they are calculated and paid, and be explicit that bonuses are discretionary if that is the case.
Check the applicable award or enterprise agreement
Most Australian employees are covered by a Modern Award or enterprise agreement that sets minimum rates, penalty rates, allowances, and conditions for their occupation or industry. The offer letter must not undercut those minimums, even if the employee agrees to it in writing.
Use the Fair Work Ombudsman's Pay and Conditions Tool to verify the correct award classification and minimum rate before you issue the offer. If your business has an enterprise agreement in place, check that the offer is consistent with it.
Where a role is award-free — common for senior managers and some professional positions — note this in the offer and confirm the annualised salary arrangement in writing, particularly if the salary is intended to absorb any overtime or penalty entitlements.
Cover the core employment conditions
A well-structured offer letter should address each of the following:
Start date and location. State the commencement date and primary work location. If the role can be performed remotely, specify whether that is by arrangement or a default condition of employment.
Hours of work. Ordinary hours, any expectation of reasonable additional hours, and whether overtime is compensated separately.
Notice period. Specify notice required from both parties. The NES sets minimum notice periods based on continuous service, but you can contract for longer notice in the offer — you simply cannot contract for less.
Probationary period. A probation clause is common and enforceable. Specify the length, what review looks like, and that either party may terminate during probation with the notice period stated in the offer. Note that the Fair Work Act's unfair dismissal protections do not apply until the minimum employment period has passed (six months for most employers, one year for small business employers as defined under the Small Business Fair Dismissal Code).
Contingencies. List any conditions the offer is subject to — background checks, reference checks, right to work verification, or a Working With Children Check if applicable. An offer should never be unconditional if you still need to verify these things.
Handle tax and reporting obligations
Once the offer is accepted and the employee starts, your payroll obligations begin immediately. Collect a Tax File Number declaration and a superannuation standard choice form before the first pay run. If the employee has a HECS/HELP debt, they will complete a withholding declaration indicating this, and you will withhold repayments on a banded scale through payroll alongside PAYG income tax withholding.
Every pay event must be reported to the ATO via Single Touch Payroll (STP) on or before the payment date. End-of-year payroll finalisation must be completed by 14 July. The Medicare levy of 2% is withheld as part of the standard PAYG withholding process — you do not set it up separately; it flows through your tax withheld calculations.
A written offer that is clear on classification, remuneration, applicable award, and conditions gives both parties a shared understanding before day one. It is also your first piece of evidence if a dispute arises later.
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