The application of Australian workplace laws can depend on more than where a worker is physically located.
Overseas work arrangements are increasing
With remote work, offshore support, and international employment arrangements becoming more common, many businesses now have workers performing duties outside Australia while still supporting, reporting into, or working closely with an Australian business.
As these arrangements become more prevalent, employers may need to consider which workplace laws apply to those workers and whether Australian workplace legislation extends to the employment relationship.
Determining which workplace laws apply
It is not always enough to look at where a worker is physically located.
Depending on how the arrangement has been structured, relevant considerations may include where the worker was engaged, where the employment contract was formed, which entity legally employs the worker, and how the arrangement operates in practice.
These factors can influence whether a worker falls within the scope of the Fair Work Act.
A recent Fair Work Commission decision considered whether a worker based overseas was covered by the Fair Work Act for the purpose of bringing a general protections claim.
The worker performed work from the Philippines in connection with an Australian company. He alleged that he had been constructively dismissed and raised concerns regarding governance within the Australian business.
Before the Commission could consider those allegations, it first had to determine whether the worker was covered by the Fair Work Act.
What is an Australian-based employee?
Under section 35 of the Fair Work Act, the geographic operation of the legislation can depend on whether a worker is considered an “Australian-based employee”.
An employee may be excluded from this definition if they are both:
- engaged outside Australia; and
- performing their duties outside Australia.
Whether those requirements are met will depend on the specific facts of each arrangement.
The Commission’s findings
In this case, the Commission found that the worker had been engaged in the Philippines and performed his duties in the Philippines.
As a result, he was not considered an Australian-based employee for the purposes of the Fair Work Act. The Commission therefore found that he was not covered by the relevant provisions and his general protections claim was dismissed.
Another case, a different outcome
This does not mean that overseas workers are never covered by Australian workplace laws.
In another recent matter involving a New Zealand-based worker, the Commission reached a different conclusion. Although the employee performed work in New Zealand, the employer’s acceptance of the employment contract occurred in Australia.
The location where the contract was formed became a significant factor, resulting in a different jurisdictional outcome.
These cases demonstrate that seemingly similar arrangements can produce different results depending on how the employment relationship has been established.
Key factors that may influence the coverage of Australian workplace laws
When assessing whether Australian workplace laws may apply, employers should consider factors such as:
- where the employment contract was formed;
- where the employee was engaged;
- where the employee performs their duties;
- which entity employs the worker;
- whether the worker reports into an Australian business; and
- how the arrangement operates in practice.
No single factor will necessarily determine the outcome, and each arrangement should be assessed on its individual circumstances.
What this means for employers
This issue is particularly relevant for employers engaging:
- offshore employees;
- international remote workers;
- overseas contractors;
- labour hire workers; or
- employees through related entities in other countries.
A worker may report to an Australian manager, perform work for the benefit of an Australian business, or have strong operational connections to an Australian organisation. While these factors may be relevant, they do not automatically determine whether Australian workplace laws apply.
Employers should avoid making assumptions based solely on where a worker is located or on the involvement of an Australian business.
Review your overseas engagement arrangements
If your business engages workers overseas, the structure of the arrangement matters.
Before assuming Australian workplace laws apply, or that they do not, employers should carefully review how the engagement has been established and consider obtaining advice where appropriate.
A proactive review can help identify potential jurisdictional issues and ensure employment arrangements align with the intended legal framework.
How Business Chamber Queensland can help
Business Chamber Queensland members can access workplace relations advice and support to better understand their employment obligations, including how workplace laws may apply to different employment arrangements.
If your business engages workers overseas, or is considering doing so, it may be worthwhile reviewing the structure of those arrangements.
For further information or support, contact the Business Chamber Queensland Workplace Relations team.
Reference: John Harris Pe v Satellite Office Solutions Pty Limited, Pepperstone Group Limited, Pia Bach, Adrian Ryan [2026] FWC 2068, Fair Work Commission, 4 June 2026.