EOFY 2025: Your Important Information to Australian Employment Legislation Updates for the New Monetary 12 months

Because the 2024-25 monetary yr attracts to an in depth, Australian employers discover themselves at a pivotal second, with a sequence of great updates to Australian employment legislation. These modifications, spanning federal and state ranges, are designed to reinforce employee safety, notably regarding wage compliance, worker classifications, and broader office rights.

The introduction of prison penalties for wage theft and the phased implementation of the “Proper to Disconnect” laws sign a big shift in direction of extra stringent enforcement of employment requirements. Probably, confusion round these new Australian laws necessities, from Honest Work Act updates to WHS obligations, can expose HR groups to dangers of non-compliance and status injury.

This weblog offers a complete overview of the important thing legislative modifications affecting employment legislation in Australia as we transition into FY25-26. Maintain studying on for insights that assist organisations keep compliant and foster honest and secure work environments.

An annual evaluation and replace on organisational insurance policies, procedures, and practices ensures that organisations adhere to present Australian employment legislation, successfully mitigating dangers of non-compliance and selling honest, lawful, and secure office practices.

To make sure strong compliance, organisations ought to diligently undertake the next actions:

• Overview and replace employment contracts and insurance policies

  
  
  

  in keeping with new and upcoming laws. This contains clauses associated to hours of labor, classifications, and entitlements.

  
  

• Implement focused coaching applications

  
  
  

  addressing latest authorized modifications, similar to new WHS laws (e.g., psychosocial hazards) or Honest Work updates.

  
  

• Guarantee correct and accessible record-keeping of all employment phrases and situations, background examine outcomes (e.g., WWC examine, police examine, AHPRA registration examine), and security coaching completion.

By proactively addressing these areas, companies can preserve seamless compliance and successfully help their workforce, fostering a safe and productive office security tradition.

For HR and recruitment professionals, holding on high of legislative modifications isn’t merely for minimising non-compliance dangers. Understanding and proactively implementing new Australian employment legislation demonstrates a real dedication to honest work practices, which might considerably improve organisational tradition, enhance worker retention, and bolster your employer model. By integrating these modifications into organisational practices, companies not solely adjust to the legislation but additionally contribute to a extra equitable and productive workforce.

Listed here are the vital updates Australian companies should put together for as we enter the brand new monetary yr:

1. Criminalisation of Wage Theft

   
   
   
   
   

2. 
   

   From 1 January 2025, intentional underpayment of wages and entitlements has been criminalised beneath the Honest Work Laws Modification (Closing Loopholes No. 2) Act 2024. Employers discovered responsible can face important penalties, together with imprisonment and substantial fines. This requires meticulous consideration to payroll, rostering, and compliance with the

   
   
   

   Honest Work Act

   
   
   

   [Source: Mapien, “Closing the Loophole: Key changes effective 1 January 2025 & what they mean for you” –

   
   
   

   Closing the Loophole: Key changes effective 1 January 2025 & what they mean for you

   
   

   ].

3. Proper to Disconnect

   
   
   
   
   

4. 
   

   The “Proper to Disconnect” laws commenced on 26 August 2024 for non-small companies (15+ workers) and can apply to

   
   
   

   small enterprise

   
   
   

   employers (fewer than 15 workers) from

   
   
   

   26 August 2025

   
   

   . This grants workers the suitable to refuse unreasonable work-related contact exterior of working hours [Source: Fair Work Ombudsman, “Right to disconnect” –

   
   
   
   
   
   

   https://www.fairwork.gov.au/employment-conditions/hours-of-work-breaks-and-rosters/right-to-disconnect

   
   

   ]

   
   

   . Organisations should evaluation communication protocols and set clear expectations.

5. Superannuation Assure Improve

   
   
   
   
   

6. 
   

   From

   
   
   

   1 July 2025

   
   
   

   , the

   
   
   

   Superannuation Assure (SG)

   
   
   

   fee will enhance from 11.5% to 12%. Employers should guarantee payroll techniques are up to date to mirror this greater share for all abnormal time earnings [Source: Business.gov.au, “Changes for businesses from 1 July 2025” –

   
   
   

   https://business.gov.au/news/changes-for-businesses-from-1-july-2025

   
   

   ].

7. Paid Parental Go away Enlargement (with Superannuation)

   
   
   
   
   

8. 
   

   Beginning

   
   
   

   1 July 2025

   
   
   

   , the government-funded paid parental go away scheme will develop from 22 to

   
   
   

   24 weeks

   
   
   

   . Crucially, superannuation contributions (on the SG fee) may also be included in the course of the go away interval for infants born or adopted from this date, aimed toward lowering the gender superannuation hole [Source: Services Australia, “Changes if you get family payments – Parental Leave Pay for a child born or adopted from 1 July 2023” –

   
   
   

   https://www.servicesaustralia.gov.au/changes-if-you-get-family-payments?context=64479

   
   

   ].

9. Clarification of Worker vs. Contractor Standing

   
   
   
   
   

10. 
    

    From 26 August 2024, the Honest Work Laws Modification (Closing Loopholes No. 2) Act 2024 re-introduced a “multi-factorial evaluation” to find out whether or not a person is an worker or unbiased contractor. This check requires contemplating the true substance, sensible actuality, and true nature of the working relationship, not solely the contractual phrases. This impacts

    
    
    

    sham contracting

    
    
    

    and ensures right entitlements are utilized, mitigating dangers that would in any other case be flagged by the

    
    
    

    Honest Work Ombudsman

    
    

    .

11. Psychosocial Hazard Rules

    
    
    
    
    

12. 
    

    New

    
    
    

    WHS

    
    
    

    laws in numerous states (e.g., Victoria from July 2023, nationally from December 2024 for Mannequin WHS Rules) require employers to determine, assess, and management psychosocial dangers within the office, similar to extreme workloads, bullying, and poor help.

    
    
    

    Work well being and security

    
    
    

    coaching is vital right here, and WorkPro’s

    
    
    

    security coaching

    
    
    

    modules can help compliance [Source: Piper Alderman, “Updates to psychosocial regulations in Australia” –

    
    
    

    https://piperalderman.com.au/insight/updates-to-psychosocial-regulations-in-australia/

    
    

    ].

13. Digital ID Act 2024 Influence

    
    
    
    
    

14. 1

    
    
    
    
    

    December 2024. Whereas not a direct employment legislation replace, the Digital ID Act 2024 is essential for HR. It offers a authorized framework for a nationwide

    
    
    

    digital id

    
    
    

    system. This impacts how organisations conduct

    
    
    

    id verification

    
    
    

    throughout

    
    
    

    onboarding

    
    
    

    and

    
    
    

    background checking

    
    
    

    , emphasising safe and reliable strategies for validating a candidate’s id, similar to utilizing

    
    
    

    Digital Identification Australia

    
    
    

    accredited providers [Source: Digital ID System, “Digital ID Act 2024” –

    
    
    

    https://www.digitalidsystem.gov.au/what-is-digital-id/digital-id-act-2024

    
    
    

    ].

    
    

The transition into FY25-26 brings important modifications to Australia’s employment legal guidelines, emphasising the significance of proactive compliance and honest office practices. By understanding and implementing these legislative updates, organisations can defend their workforce, keep away from penalties, and promote a optimistic organisational tradition.