Are you an Australian employer looking to hire a Working Holiday Maker (WHM)? There are definite advantages to hiring WHM visa holders in your business - they don’t need to be sponsored, there’s no occupation list to check, and they can work full time anywhere is Australia.

Working holiday makers (WHMs) are temporary visitors to Australia who hold a Working Holiday visa (subclass 417) or Work and Holiday visa (subclass 462). 



WHMs are able to access up to three WHM visas, provided they meet age requirements and do some “specified regional work” WHM visa applicants from Ireland, Canada, France, Italy and Demark can apply up to the age of 35, and the remaining eligible passport holders can apply up to the age of 30.

WHMs come from all over the world, bringing with them skills, experience, and enthusiasm. They can be an excellent addition to any workplace.

But what do employers need to know about working with WHMs? Let’s take a look. 

Employer Obligations

As with all employees, employing WHMs means that you must meet all obligations under Australian workplace laws. This includes paying the correct minimum wage and providing workers with a safe and healthy working environment, among other things. 

It is also important to remember that there may be some additional considerations when hiring WHMs depending on their country of origin and visa conditions. For example, if they are from certain countries they may require an International Health Cover policy while they are in Australia. 

It is important to research these requirements when considering hiring a WHM so that you can ensure compliance with all applicable laws. 

There are certain additional obligations that employers need to be aware of when hiring someone on a Working Holiday Visa. 

Is Their Visa Valid? Do They Have Permission To Work?

First and foremost, it is important that employers ensure their prospective employee has the right to work in Australia. Visa details can be obtained from the Department’s Visa Entitlement Verification Online (VEVO) website. 

Register as An Employer of WHM

If you employ or plan to employ working holiday makers, you must register as an employer of working holiday makers before making the first payment to them.

Please note that to register as an employer of working holiday makers you must first be registered for PAYG withholding. You can find our more here.

The “Six Month” Rule

Additionally, employers should note that Working Holiday Makers are only permitted to work for up to six months (the “six month rule”) with any one employer and therefore you need to make sure to keep track of the commencement date and when the limitation expires.

This means that a WHV holder may work for an employer for six months during the 12 month period of their visa unless policy exceptions apply.

Exceptions:

• Working in different locations for the same employer where the work in any one location does not exceed 6 months.

• A WHM working under their own ABN, and not working continuously in the same location.

• When a WHV holder applies for a second and third WHV (see below), they will be granted a bridging visa if the new WHV has not been granted when the current WHV expires.As soon as the new bridging visa is granted, the 6 months work period is reset for the visa holder. In other words, the application for a second and third WHV triggers an ability to work for an employer at the same location for a further six months.

(Please note that currently, WHM’s are not bound by the 6 month rule by way of a Covid concession, but this ends at the end of December 2022)

2nd & 3rd Working Holiday Visas

In the case of Working Holiday Makers who complete three months (88 days) of “specified work” in regional Australia during their first WHV, they will be eligible for a second year visa. 

If they then complete six month specified work in their second visa year, they will be eligible to apply for a third 12 month Working Holiday visa.

Specified work can include agriculture, mining, fishing or construction industries and employers should make sure to provide payslips for each pay period and also furnish them with a payment summary.

Tax Obligations

When employing WHMs it is important to remember that as an employer you will need to comply with tax obligations such as deducting income tax from their wages and paying it on their behalf to the Australian Taxation Office (ATO). 

Other obligations include obtaining an Australian Business Number (ABN) for your business and registering for GST if necessary. If you are unsure of your obligations when employing WHMs it is best to seek professional advice from a qualified accountant or bookkeeper.  

Applicable tax rates can be found on the ATO website here.

Working holiday makers must also have a valid tax file number (TFN). 

Superannuation

When it comes to superannuation, Working Holiday Makers must receive the same payment as any other Australian employee in a position that ordinarily provides superannuation. 

Employers can access the Employee/Contractor decision tool on the Business.gov.au website if they are uncertain of a worker’s status. 

If the WHM employee is not an employee (i.e. working under their own ABN), the must calculate and pay their own super from the payments made to them by the person they subcontract with.

Compliance

Failure of an employer to comply with visa requirements and conditions of their employees can result in serious penalties including warnings, infringement notices, civil penalty orders and even criminal proceedings for repeat offenders and employers guilty of foreign worker exploitation.

By taking the necessary steps, and being well informed, Australian employers can ensure that they are meeting their legal obligations when it comes to hiring Working Holiday Makers. 

Benefits

Employing working holiday makers in Australia can be incredibly beneficial for businesses looking to expand or simply add some new energy into their workforce quickly. Plus, since it’s relatively easy to hire WHMs, it’s no wonder why these temporary workers have become increasingly popular among employers in Australia. Now that they are on their way back  to Australia, it's a great opportunity for any business looking for staff (and who isn't!).

With this information in hand, now you can make an informed decision about whether hiring a working holiday maker is right for your business!

Confused?

Employers in Australia often find themselves in a difficult situation when it comes to hiring working holiday makers. 

The rules around employing working holiday makers are constantly changing, and it can be hard to keep up with what's required of you. 

AHWC Immigration Law is here to help. We provide employers with up-to-date information on their obligations, as well as advice and support on how to navigate Australia’s complex immigration system -  www.ahwc.com.au

And if you’re stuck for new recruits, contact our trusted Partner LORG Talent, or post your job using the employer tab above  - www.lorgtalent.com