[Australia] Employment law changes for 2025

In Australia, small businesses across the nation must prepare for major workplace law changes designed to improve fairness, transparency, and work-life balance. Dynamic Business offers an overview of the coming changes and how businesses can adapt.

Criminal penalties for wage theft

From January 1, 2025, intentionally underpaying workers became a criminal offence. Honest mistakes will not be penalised but it is essential that businesses:

     • Stay compliant with National Employment Standards.

     • Keep up with award obligations.

     • Maintain accurate records.

The right to disconnect

From August 26, 2025, employees will reportedly have the right to ignore work calls and emails outside of their regular hours when it is reasonable to do so.

Businesses should prepare by:

     • Updating employee contracts and policies.

     • Training managers on respecting these boundaries.

     • Establishing systems to ensure business continuity while honouring this right.

Award changes

On January 1, 2025, updates to 37 modern awards came into effect, including:

     •  Revised pay rates.

     •  New limits on how long employees can remain in entry-level positions.

Dynamic Business notes that industry associations are a valuable resource for businesses to stay abreast of the changes.

Changes for WA businesses

From January 31, 2025, Western Australia introduced new rules that align with federal legislation. Key updates include:

     • Clearer definitions of casual employment.

     • Tougher penalties for breaking employment laws.

     • Casual loading on WA’s minimum wage increasing from 20 per cent to 25 per cent.

     • Expanded rights for long-term employees to request flexible work.

Superannuation on parental leave

From July 1, 2025, the Australian government will pay 12 per cent superannuation on parental leave payments. This doesn’t impact employer contributions, however, it is a positive step towards supporting working parents.

Redefining “small business”

COSBOA is pushing to expand the definition of a “small business” from 15 to 50 full-time employees, excluding casuals. Dynamic Business states that such a change could:

     • Cut red tape for more businesses.

     • Encourage growth and job creation.

     • Bring Australia in line with international standards.

The Fair Work Ombudsman is reportedly accepting feedback on this proposal until March 7, 2025. 

Source: Dynamic Business

In Australia, small businesses across the nation must prepare for major workplace law changes designed to improve fairness, transparency, and work-life balance. Dynamic Business offers an overview of the coming changes and how businesses can adapt.

Criminal penalties for wage theft

From January 1, 2025, intentionally underpaying workers became a criminal offence. Honest mistakes will not be penalised but it is essential that businesses:

     • Stay compliant with National Employment Standards.

     • Keep up with award obligations.

     • Maintain accurate records.

The right to disconnect

From August 26, 2025, employees will reportedly have the right to ignore work calls and emails outside of their regular hours when it is reasonable to do so.

Businesses should prepare by:

     • Updating employee contracts and policies.

     • Training managers on respecting these boundaries.

     • Establishing systems to ensure business continuity while honouring this right.

Award changes

On January 1, 2025, updates to 37 modern awards came into effect, including:

     •  Revised pay rates.

     •  New limits on how long employees can remain in entry-level positions.

Dynamic Business notes that industry associations are a valuable resource for businesses to stay abreast of the changes.

Changes for WA businesses

From January 31, 2025, Western Australia introduced new rules that align with federal legislation. Key updates include:

     • Clearer definitions of casual employment.

     • Tougher penalties for breaking employment laws.

     • Casual loading on WA’s minimum wage increasing from 20 per cent to 25 per cent.

     • Expanded rights for long-term employees to request flexible work.

Superannuation on parental leave

From July 1, 2025, the Australian government will pay 12 per cent superannuation on parental leave payments. This doesn’t impact employer contributions, however, it is a positive step towards supporting working parents.

Redefining “small business”

COSBOA is pushing to expand the definition of a “small business” from 15 to 50 full-time employees, excluding casuals. Dynamic Business states that such a change could:

     • Cut red tape for more businesses.

     • Encourage growth and job creation.

     • Bring Australia in line with international standards.

The Fair Work Ombudsman is reportedly accepting feedback on this proposal until March 7, 2025. 

Source: Dynamic Business