Australians who work for tech giant Atlassian are being paid different wages based on where they live.
Co-CEO Scott Farquhar, who is currently driving around Australia in a bid to hire more than 1000 new employees, revealed that there was a different pay system in place for those who reside in NSW and Victoria compared to staff in other states.
For example, an employee based in a NSW town such as Byron Bay, Gosford, Newcastle, Nowra or Wagga Wagga would receive a higher wage than someone living in a capital city in another state or territory such as Brisbane or Canberra.
Australians working for tech giant Atlassian will be paid a higher wage if they're based in NSW or Victoria compared to other states and territories
The software company's co-founder Scott Farquhar (pictured) hit the road for a recruitment campaign this month
The company describes it as a two-tier system where NSW and Victoria are Zone A and the rest of the country is Zone B.
Farquhar claimed that the system was not discriminatory and was actually based on an employee's cost of living situation.
'We have high-paying jobs in all locations, and we pay slightly differently in some of the major metro regions to recognise the cost of living there,' he told the Australian Financial Review.
'But these jobs have significantly increased (pay rates) on what local salaries are in local regions.'
Atlassian did not reveal the average pay difference between an employee in NSW or Victoria compared to someone in a different part of the country.
The legality around paying employees different rates based on their geographic location has been questioned.
Employment lawyer Mia Pantechis told Daily Mail Australia that while the system is not unlawful under discrimination laws, it could still create issues for Atlassian.
'The risk with the model is that it can lead to pay inequity between employees performing the same work and impact workplace culture.'
She added: 'This model can be difficult to justify in circumstances where hybrid working modes and remote work have become the new norm since the pandemic.'
Farquhar hit the road for a recruitment campaign last week, driving an Atlassian-branded campervan to underline his point.
He is on the lookout for 1,032 new Aussie staff for research and development roles and claimed that hired employees would be able to work from 'anywhere'.
The software company is travelling across the country with the aim to hire 1032 new Aussie staff for research and development roles
Farquhar explained that the two-tier pay system employed by Atlassian is based on the cost of living situation in different parts of the country
Atlassian was founded by Farquhar and Mike Cannon-Brookes (pictured) and has become Australia's biggest tech company
'Atlassian’s work from anywhere policy (Team Anywhere) means many Aussies can realise a dream in tech without having to move,' a statement from the company said.
The company's recruitment drive began at Sydney's Martin Place and turned into a road trip afterwards.
The so-called 'AtlassiVan' has visited Canberra and Wollongong and will make its way to Melbourne, Adelaide, Newcastle, Brisbane, Gold Coast and Sunshine Coast.
Most salary packages for Atlassian jobs are between $100,000 and $150,000, depending on previous roles and experience.
Atlassian was founded in 2002 by Farquhar and Mike Cannon-Brookes when they studied at the University of NSW and has grown to be Australia’s biggest tech business.