What is an Employer of Record service?
At its core, an Employer of Record (EOR) is a legal entity that assumes full statutory responsibility for employing workers on behalf of another organisation. While traditional EOR services often focus on helping companies expand internationally without setting up local entities, our model is tailored to provide a fully compliant engagement structure for managing your contingent workforce right here in Australia. As your trusted Employer of Record, Oncore steps in as the official employer for PAYG workers and contractually engages independent contractors—taking care of statutory liabilities, payroll administration, insurance coverage, and formal contract management. This approach delivers the most robust legal compliance and risk mitigation both locally and across global operations, leaving you free to focus on growing your business with total peace of mind.
Why is Oncore making these changes now?
We have sought extensive legal advice regarding the use of independent contractor agreements, and believe that a transition of PAYG independent contractor arrangements to casual employment agreements is most aligned with current legislation and future trends. After being acquired by Workwell, Oncore has also been steadily working to align our branding and market offerings. We have successfully launched our Employer of Record (EOR) model to two of our other client segments, wanting to ensure that we have thoroughly tested this model and created robust processes before rolling it out to our Recruitment Agency partners. We are excited by these changes, and believe that this new model offers additional benefits and true outsourced risk mitigation for our clients. As always, we are supportive of you seeking your own advice to assist you in making a decision. If you are considering a change to casual employment arrangements but do not wish to use Oncore's EOR service, you have the option to employ these workers directly while we provide our other services—payments and payroll, invoicing, technology, and funding.
How is this new model different from my current model?
Under your current model, Oncore takes responsibility for insurance administration, payment processing, and statutory distributions. The contractual relationship is between your agency and the worker (or their incorporated entity), with Oncore listed as a services provider. Under your current Services Agreement, Oncore is indemnified against any employment-related claims. In the refreshed EOR model, Oncore will now hold the contractual relationship with the worker (or their incorporated entity). This provides an additional layer of risk mitigation for your agency, with Oncore fully absorbing the contractual liabilities. All workers who do not have their own incorporated entity will become casual employees of Oncore, offering a clearly defined employment relationship and a single pathway to pursue dispute resolution through Oncore. While you will still have obligations in the chain of on-hire—such as shared duties under WH&S legislation and labour hire licensing in applicable states—Oncore will take care of all employment-related administration.
What are the benefits of the new model?
You fully outsource the contractual risk to Oncore, further protecting your agency from employment-related claims and liabilities. Oncore will take responsibility for issuing contracts to the workers you onboard and will handle all formal written communication in relation to contractual or employment matters—significantly reducing the administrative burden for your agency.
Is this new model covered under my existing Services Agreement?
No. You will need to sign an updated Services Agreement. However, it is only the Services Agreement that is changing. If you are using Oncore's funding, you will not be required to sign an updated Cashflow Management Facility Agreement or Guarantee and Indemnities.
What are the key differences between current and new processes?
Oncore will take responsibility for preparing and distributing casual employment contracts to all PAYG workers, and Independent Contractor Agreements to workers engaged via their own incorporated entities. You will no longer be required to provide a signed contract at onboarding—the submission of a new worker will trigger Oncore to issue the relevant agreement. For workers where an award is applicable, Oncore will need to list the relevant award and level on the casual employment agreement, meaning you will need to confirm agreed rates prior to submitting the worker. You will also notice that Oncore may request additional information at the outset of a placement, such as physical work location, detailed position descriptions, or CVs. Oncore will commence an annual process to collect payroll tax chain of on-hire declarations from agency partners, and you will need to ensure payroll tax is being paid for all workers engaged through Oncore. It is important that Oncore works in collaboration with your agency on any performance-related issues and contract terminations, as we will have expanded obligations relating to critical employment milestones. Any formal written communication pertaining to a worker's employment must come from Oncore.