As Canadian businesses look to expand globally, Australia presents a strong and attractive market with a stable economy, strategic location, and well-defined employment laws. However, understanding the differences between Australia’s National Employment Standards and Ontario’s Employment Standards Act is essential for smooth business operations.
Employment Law Framework: Australia vs Ontario, Canada
Australia’s employment laws are governed by the Fair Work Act 2009, which establishes the National Employment Standards (NES). These ten minimum standards apply to all employees covered by the national workplace relations system and include provisions on wages, leave, working hours, and termination.
In Canada, employment laws are governed at both the federal and provincial levels. Ontario’s Employment Standards Act (ESA) is often used as a benchmark for comparison, although other provinces have similar legislation.
Australia vs Canada
One of the primary differences between Australia and Canada is the regulation of working hours and overtime. In Australia, the standard workweek is 38 hours, with additional hours requiring reasonable justification and overtime compensation. Overtime rates are dictated by Modern Awards (industry-specific agreements). In contrast, Ontario employees can work up to 44 hours per week before overtime pay (1.5x the hourly wage) is required.
Leave entitlements differ significantly. In Australia, employees receive four weeks of paid annual leave, with Australia mandating 10 days of paid personal leave per year, compared to Ontario’s provision of three unpaid sick days.
Termination and severance pay regulations differ between the two countries. Australia requires notice periods ranging from one to five weeks, while Ontario mandates notice periods of one to eight weeks depending on tenure. Severance pay in Ontario applies if an employee has five or more years of service and if the employer has CAD $2.5 million in payroll. In Australia, redundancy payments apply for businesses with 15 or more employees.
Unfair dismissal protections are also more robust in Australia. Under the Fair Work Act, employees can claim unfair dismissal after six months of employment (12 months for small businesses). In Ontario, similar protections apply after three months of service.
More Information
For more information, visit:
- https://www.fairwork.gov.au/
- https://www.fairwork.gov.au/employment-conditions/national-employment-standards
- https://www.fwc.gov.au/work-conditions/awards/find-award
- https://www.legislation.gov.au/C2009A00028/latest/versions
How Can We Help
Expanding into a new country comes with legal challenges. At MurdockCheng Legal Practice, we assist Canadian businesses in:
- Setting up an Australian subsidiary or branch office
- Ensuring compliance with Australian employment law
- Advising on tax structuring & government incentives
- Providing local directorship services for foreign-owned businesses
About MCLP
Damin Murdock is from the Ottawa Valley; a graduate from the University of Western Ontario (Finance); holds a law degree from Australia (International Trade Law); a Masters of Laws from Erasmus University Rotterdam (International Business Transactions); President of the Canadian Australian Club (Sydney); and Treasurer of the North American Australian Lawyers Alliance.
MCLP has been operating in Sydney and Melbourne for more than a decade, and most of our lawyers hold business administration degrees ensuring you are receiving both practical and legal solutions for your expansion to Australia.
For more information, call our office on +61 2 9262 5495 or email Mr Murdock directly at dmurdock@mclp.com.au for a free consultation, or subscribe to our newsletter by visiting https://mclp.com.au/publications/
For additional information and support:
- Canadian Consulate-General in Sydney
📍 Level 6, Quay West, 111 Harrington Street, Sydney NSW 2000
📞 +61 2 9364 3000 | ✉ sydny@international.gc.ca - Canadian High Commission in Canberra
📍 Commonwealth Avenue, Canberra ACT 2600
📞 +61 2 6270 4000