Disclaimer: This information is a general summary and not a substitute for legal advice. Always consult official legislation or seek professional guidance for your specific business needs.
Employment law changes 2025: A small business guide
Introduction
If you’re a small business owner in Australia, recent changes to employment laws can feel overwhelming. From ensuring your employees have the “right to disconnect” to navigating the criminalisation of wage theft, staying compliant is crucial to avoid penalties and foster a positive workplace culture. Below is a streamlined overview of the 10 key changes and what they mean in practical terms for small businesses—along with two handy tables summarising these updates and showcasing how RosterElf can help simplify your compliance efforts.
Table of contents
- Quick snapshot of the changes
- 1. Right to disconnect (after-hours contact)
- 2. Criminalising wage theft
- 3. New rights for casual employees (definition & conversion)
- 4. “Same job, same pay” – labour hire reforms
- 5. Redefining contractor rules (gig economy)
- 6. Pay secrecy banned – new transparency rights
- 7. Stronger sexual harassment protections at work
- 8. Fixed-term contract limitations
- 9. Annual wage review 2024 – minimum wage increase
- 10. Superannuation in the NES + higher super guarantee
- How RosterElf can help
- Taking action: key steps for compliance
- Further guidance & official resources
- Final thoughts
Quick snapshot of the changes
| # | Change | Start date | Key points |
|---|---|---|---|
| 1 | Right to disconnect | 26 Aug 2024 | Employees can refuse after-hours contact unless it’s “reasonable.” Formalise on-call. |
| 2 | Criminalisation of wage theft | 1 Jan 2025 | Deliberate underpayments now a criminal offence, with fines and possible imprisonment. |
| 3 | New rights for casual employees | 26 Aug 2024 | Focus on “no firm advance commitment.” Easier casual conversion after 12 months. |
| 4 | “Same job, same pay” – labour hire reforms | 2024–2025 | Labour hire workers must receive at least the same pay as direct employees. |
| 5 | Redefining employment & contractor rules (gig economy) | 26 Aug 2024 | “Whole of relationship” test for distinguishing employees vs. contractors. |
| 6 | Pay secrecy banned | Ongoing (2022–2023) | Contracts cannot forbid salary discussions; retaliation is prohibited. |
| 7 | Stronger sexual harassment protections | 12 Dec 2023 | Employers have a positive duty to prevent harassment, not just respond after. |
| 8 | Fixed-term contract limitations | 6 Dec 2023 | Cannot keep extending fixed-term roles beyond 2 years or 2 consecutive contracts. |
| 9 | Annual wage review 2024 – minimum wage increase | 1 Jul 2024 | National Minimum Wage and modern awards up by 3.75%. |
| 10 | Superannuation in the NES + higher super guarantee | 1 Jan & 1 Jul 2024 | Unpaid super now an NES breach; SG rate at 11.5%, heading to 12%. |
1. Right to disconnect (after-hours contact)
What it means for small businesses
Example:
If you run a local IT support service with an on-call technician, you now have to formalise an on-call arrangement if you expect them to respond after hours.
Practical tip:
Update your communication policy so staff know how and when they can be contacted. Compensation or “reasonable” contact is vital.
References:
2. Criminalising wage theft
What it means for small businesses
Example:
A small café that miscalculates penalty rates for weekend shifts could face criminal charges if the underpayment is deemed deliberate.
Practical tip:
Conduct regular payroll audits, use fair work-compliant payroll software, and rectify any errors as soon as possible.
References:
3. New rights for casual employees (definition & conversion)
What it means for small businesses
Example:
A family-owned retail store relying on casual employees for varying hours must confirm the work is truly “casual.” After 12 months, casuals can request permanent conversion if the hours are regular.
Practical tip:
Provide the Casual Employment Information Statement at hiring, monitor casual hours, and discuss conversion when patterns become consistent.
References:
4. “Same job, same pay” – labour hire reforms
What it means for small businesses
Example:
If you hire extra staff through an agency for a busy holiday season in your retail store, those labour hire workers must earn at least the same base rates as your regular employees performing similar duties.
Practical tip:
Review your labour hire agency agreements to ensure compliance and prevent wage disparities.
References:
5. Redefining contractor rules (gig economy)
What it means for small businesses
Example:
If you engage a freelance delivery driver for your local bakery but set strict hours, they could be deemed an employee under the new “whole of relationship” test.
Practical tip:
Ensure contractors truly operate independently (setting their own hours, equipment, etc.). If you control their work like employees, you may need to provide entitlements.
References:
6. Pay secrecy banned – new transparency rights
What it means for small businesses
Example:
You cannot include a clause in staff contracts prohibiting discussion of pay.
Practical tip:
Remove any pay-secrecy clauses from existing contracts and be prepared for more open conversations about salaries.
References:
7. Stronger sexual harassment protections at work
What it means for small businesses
Example:
If an employee experiences ongoing inappropriate comments from a colleague, you now have a positive duty to stop it before it escalates.
Practical tip:
Provide regular anti-harassment training, clear policies, and a safe reporting channel. Act quickly if complaints arise to avoid legal issues.
References:
8. Fixed-term contract limitations
What it means for small businesses
Example:
If you repeatedly renew a 6-month contract for an admin assistant, you may need to offer them a permanent position after two years.
Practical tip:
Assess each contract’s duration and nature. Provide the Fixed Term Contract Information Statement to new hires.
References:
9. Annual wage review 2024 – minimum wage increase
What it means for small businesses
Example:
If you employ staff under the Hospitality Award, their rates went up by 3.75% from 1 July 2024.
Practical tip:
Update your payroll systems each July and ensure penalty rates, casual loadings, and allowances also reflect these increases.
References:
10. Superannuation in the NES + higher super guarantee
What it means for small businesses
Example:
Unpaid super is now also a breach of the National Employment Standards, so employees can lodge complaints with Fair Work as well as the ATO.
Practical tip:
Keep pace with the rising Superannuation Guarantee (SG) rate—11.5% from 1 July 2024, heading to 12%. Plan financially and pay on time to avoid penalties.
References:
How RosterElf can help
Staying compliant with all these legal changes can be time-consuming for small business owners who wear multiple hats. Here’s how RosterElf can support you:
| Issue | RosterElf feature | Benefit for small business |
|---|---|---|
| Ensuring accurate wage calculations | Award interpretation & payroll integration | Reduce the risk of wage underpayment and criminal liability |
| Tracking hours and controlling after-hours contact | Digital rosters & time clocks | Prevent unapproved overtime, support “right to disconnect” |
| Managing casual conversions & record-keeping | Employee profiles & tracking | Identify staff approaching conversion thresholds, store records securely |
| Minimising payroll errors | Real-time reporting & approvals | Instant correction of timesheets, transparency for Fair Work audits |
Looking for more insights on the ideal scheduling solution? Read about the best roster apps for 2025 (Xero insights), or check out the best employee scheduling apps 2025. Curious why RosterElf stands out as the best rostering system in Australia? Dive into that guide to learn more.
Discover additional RosterElf benefits
- Learn how RosterElf can save time and save money for your business.
- Boost employee accountability and minimise time theft.
- Easily roster by skillset and maintain fair work compliance.
Taking action: key steps for compliance
- Review contracts & policies: Check that you’ve removed pay-secrecy clauses, updated casual employment terms, and clarified right-to-disconnect guidelines.
- Train your staff & managers: Offer short, clear training sessions on sexual harassment prevention, after-hours contact, and correct employee classification.
- Conduct a payroll audit: Whether you use software or manual spreadsheets, verify that wages and super are calculated correctly. Rectify errors promptly.
- Use a tool like RosterElf: Automate rostering, track hours, and integrate payroll to save time and reduce risks of underpayments.
- Seek professional help when uncertain: If you’re unsure about award coverage, classification of workers, or how to handle a harassment complaint, consult a qualified HR professional or contact the Fair Work Ombudsman.
Further guidance & official resources
- Fair Work Ombudsman – Guidance on awards, wages, and entitlements.
- Fair Work Commission – The national workplace relations tribunal.
- Australian Human Rights Commission – Discrimination and harassment information.
- Federal Register of Legislation – Official legislation, including Fair Work Act amendments.
Final thoughts
Staying on top of employment law changes can seem daunting—especially for small businesses with limited resources. However, proactive steps like updating contracts, training staff, and using the right rostering software will help you avoid costly mistakes and create a fair, compliant workplace. Tools like RosterElf further simplify the process, offering automated rostering, payroll integration, and real-time oversight to meet new legal obligations with ease. By embracing these reforms, you not only protect your business from penalties but also foster a positive, transparent culture that supports both you and your employees.
