An individual living and working outside Australia for an Australian employer can be subject to Australian workplace laws if the employment relationship has a sufficient connection to Australia, especially under the Fair Work Act 2009.
A recent Fair Work Commission (FWC) case in 2025, Pascua v Doessel Group Pty Ltd, exemplifies this.
Recent Case: Pascua v Doessel Group Pty Ltd
- In this 2025 case, Ms Joanna Pascua, a legal assistant based in the Philippines, worked remotely for Doessel Group, an Australian (Queensland-based) law firm.
- Although her contract described her as an independent contractor, the FWC examined the practical realities and found she was in fact an employee. Key factors included her following set hours, being subject to direct supervision, and providing exclusive services essential to the firm’s operations.
- The FWC ruled that Pascua was unfairly dismissed and awarded her 15 weeks’ pay as compensation, affirming that protections under Australian workplace laws—including unfair dismissal—could apply even to employees working overseas if the genuine working relationship justified it.
Legal Principles and Coverage
- The Fair Work Act 2009 can apply to overseas workers if:
- The employer is an Australian enterprise within the “national system”.
- The worker’s employment has a substantial, practical link to Australia, such as being governed by Australian employment terms, organisation integration, or contractual acceptance in Australia.
- Courts focus on the substance of the employment—hours worked, level of control, integration, and the nature of the tasks—over labels such as “independent contractor” or “overseas worker”.
- Another relevant case, Gautam Parimoo v Lake Resources N.L (2023), clarifies that an employee engaged under an Australian contract—even if working abroad—can be covered by Fair Work legislation if the contract is formed in Australia and the employer is Australian.
Lessons for Employers
- Attempting to avoid Australian legal obligations by employing workers overseas does not necessarily prevent application of Australian workplace laws.
- Companies should ensure contracts and actual working arrangements are consistent, legally reviewed, and compliant with both Australian law and any applicable local regulations.
- Improper classification or mismanagement of overseas employment can lead to successful claims under Australian law, with consequent financial and reputational risks for Australian businesses.
Conclusion
Australian workplace laws may extend to employees living and working overseas for Australian employers, as demonstrated by the 2025 Pascua v Doessel Group case, provided there is a strong employment connection to Australia and the substance of the arrangement meets the legal definition of employment under the Fair Work Act.
The Fair Work Commission (FWC) treated the Philippine worker, Ms Pascua, as an Australian employee due to several practical and substantive facts about her working relationship, instead of relying solely on the label used in her contract.
Key Facts Considered by the FWC
- Fixed Hours & Direct Supervision: Ms Pascua worked full-time hours set by Doessel Group and was closely supervised, indicating the employer exercised significant control typical of an employment relationship rather than independent contracting.
- Exclusive Service: She provided her services exclusively to the Australian law firm, not to multiple clients, supporting the view that she was functioning as an employee.
- Central Tasks to Business: Her duties included legal research, client liaison, and administrative tasks that were essential to the firm’s core business—not secondary or external contractual work.
- Integration into Firm: Ms Pascua was given firm-specific tools (such as a PBX phone and an internal email address) and became functionally integrated into the business operations, rather than acting independently.
- No Ability to Delegate: She had no right to delegate tasks to others, which is inconsistent with true independent contracting.
- Low Hourly Rate: Her pay rate was set at $18 per hour—substantially below market rates for contractors—indicating an employment relationship.
- Work Relationship Substance: The FWC focussed on how she worked day-to-day and the substance of the arrangement, rather than just the contractual language or her location.
Additional Considerations
- The FWC’s decision to recognise Pascua as an employee allowed her to successfully pursue an unfair dismissal claim under the Fair Work Act, despite the work being performed outside Australia.
- This approach demonstrates that Australian workplace law may apply to overseas workers if the employer is part of Australia’s national system and the relationship aligns with the practical definition of employment.
In summary, the FWC’s classification relied on the realities of Pascua’s working arrangement, emphasising control, integration, exclusivity, and essential duties over contract labels or physical work location.
[1] https://morganenglishlawyers.com.au/when-are-overseas-workers-classified-as-australian-employees/
[2] https://www.mcw.com.au/outsourcing-overseas-just-became-riskier-for-australian-businesses/
[3] https://ballawyers.com.au/article/offshore-workers-and-pascua-v-doessel/
