Employing Australian National

[Amelia1909]

Hi there
I wondered if anyone had any experience on this they might be able to help with.

We currently have an Australian National working for a UK based company. There is no office in Australia- this guy is self employed as a freelancer. He is paid a daily rate and pays his own tax affairs in Australia.

He has enquired about becoming an employee. I am trying to figure out what the implications of this would be for the Company. Obviously he would be entitled to holiday and sick pay and other benefits. But how would we even pay him and would tax and N.I be payable in the UK (by us) and Australia (by him). I am struggling to understand the pros and cons of this?!
Hugely appreciate anyone's view on this or experience in the same situation.
Many thanks in advance.

[BritInUS1]

I would avoid it but if you want to proceed you need to speak to a payroll provider / accountant in Australia

[Amelia1909]

Hi Fuzzy!
Yes he is expecting to renegotiate as he is currently on a day rate.

[fuzzyduck1]

If you employ him direct you’ll have obligations like holiday tax national insurance pensions to add to the cost of his wages.
This can be 60%-80% above what you pay him so this is something you have to cost into his wages.
is he willing to take a cut in what you pay him for the security of a full time job? Or is he expecting to still take home the same wage?

[Amelia1909]

Hi lives and is based in Australia. I have learned so far that we need to set up an Australian subsidiary of the co or use a payroll bureau in Oz.

[BritInUS1]

What country will he be working from? If he is going to be in Australia, you cannot pay him from a UK payroll

You will need to speak to someone who understands Australian employment law and will need a payroll there

[Amelia1909]

Thanks for all the replies.
It's clearly not straightforward and I will seek further advice!
Thanks again

[flowery]

You need advice on Australian employment and tax law which you’re not going to get on here.

In this country just calling someone a freelancer and paying them against an invoice wouldn’t make them self-employed. Someone’s employment status depends on the nature of the relationship between the parties and the realities of the situation. It may be the same in Australia, I don’t know. It may be that you don’t get to just decide to say no and keep him as a freelancer.

Get him to source a local expert for you to talk to. I’ve done that before when clients have wanted to engage someone to work abroad.

[HundredMilesAnHour]

Ah ok, so he's Australian and wants to stay in Australia and work for you there?

To be honest, I'd just say no. It will be a load of aggravation for you to even find out what's feasible since you don't have any presence in Australia. Carry on paying him as a freelancer.

[Amelia1909]

Hi there - thanks for replying.
this chap is a born and bred Australian.
I think one option is to use a payroll bureau to pay him from the Uk but have no idea on fees for something like that?!

[BritInUS1]

Where is he based? UK or Australia?

[HundredMilesAnHour]

Does he have right of abode or an ancestry visa? Or is he expecting you to sponsor his work visa? Does he have special work skills that aren't readily available from UK citizens?