Hiring offshore? You might be breaking the law (without knowing it)

Hiring offshore? You might be breaking the law (without knowing it)

Virtual assistants. Overseas contractors. Remote paralegals.
They’re affordable, efficient, and don’t use up your coffee pods.

But a recent Fair Work ruling just confirmed what a lot of Aussie businesses didn’t want to hear:
If they work like an employee, they probably are one.
Even if they’re working from a couch in the Philippines.

The real-life case that’s shaking things up

Let’s talk about Joanna Pascua, a paralegal based in Manila. She worked full-time for a Brisbane company, started each day on Queensland time, reported to Aussie managers, and liaised with local clients.

On paper? She was listed as an “independent contractor.”
In reality? A full-blown employee, according to the Fair Work Commission.

And that ruling? Game-changer.

Joanna was found to be eligible for protections under the Fair Work Act, including:

• Minimum wage (currently $24.95/hour from 1 July 2025)
• Unfair dismissal rights
• Protection from discrimination

This case sends a clear message: it doesn’t matter where someone lives. If they’re working under Australian terms and conditions, they’re entitled to Australian protections.

What this means for Australian businesses

This decision has major implications for:

• Small businesses using offshore admin support or VAs
• Startups hiring international staff to save on costs
• Any company classifying offshore talent as “contractors” when they’re actually functioning as employees

If you set someone’s hours, direct their work, and they don’t have other clients, the location is irrelevant. They may legally be an employee, and your business could be on the hook for back pay, benefits, and more.

The Fair Work Act doesn’t stop at the shoreline.

The risk is real and rising

Misclassifying workers isn’t just a technical error. It can lead to:

• Claims for unpaid wages and entitlements
• Unfair dismissal claims
• Superannuation and tax obligations
• Reputational damage if it ends up in the media

This isn’t just about ticking a box on a contract template. It’s about what the working relationship looks like day-to-day. If it walks like an employee and works like an employee, that’s how Fair Work will treat it.

What you should do now

If your business engages overseas contractors, or you’re considering it, this is your nudge to tighten things up.

1. Review your current arrangements

Do your contractors run their own business? Or are they working just for you, following your rules, on your systems?

2. Compare your setup to Fair Work’s criteria

Key factors include level of control, independence, hours, exclusivity, and whether the person is truly operating as their own business.

3. Update your contracts

If your contract doesn’t reflect the reality of the arrangement, it won’t hold up. Using a freebie template or recycling old documents won’t cut it here.

4. Stop treating “remote” like a workaround

Just because someone isn’t physically in Australia doesn’t mean you can ignore local employment laws. If you’re running an Australian business, the obligations follow you.

This is where we come in

HR Gurus has worked with hundreds of Australian businesses who rely on virtual teams. We know the grey areas, and we know how to clean them up without creating red tape for the sake of it.

We’ll help you:

• Review your current offshore or contractor relationships
• Flag legal and compliance risks before they bite
• Draft clean, compliant contracts tailored to your structure
• Build ethical, sustainable workforce models both onshore and offshore

No fluff. No judgment. Just smart, straight-talking HR that keeps you safe and helps your business grow.

Final word

The world of work is changing fast. It’s easier than ever to build a global team—but it’s also riskier if you don’t have your foundations right.

This Fair Work ruling is a timely reminder that your obligations as an employer don’t end at the Australian border. Remote workers are real people, and if you’re treating them like employees, the law probably will too.

Don’t wait for a claim or a compliance scare to get this sorted.

If you’re not sure whether your current setup is compliant, we’re here to help.

Get in touch for a compliance check-up. Let’s make sure your structure is working for you, not against you.