Workplace Relations Changes Every Employer Should Know (2025–2026)
The past two years have seen some of the most significant changes to Australia’s workplace relations laws in decades. The reforms continue to place greater emphasis on employee protections, wage compliance and employer accountability.
For business owners, understanding these changes is critical to reducing legal risk and ensuring ongoing compliance.
1. Criminal Wage Underpayment Laws
One of the most significant reforms is the introduction of criminal penalties for intentional wage theft.
Employers who deliberately underpay employees may now face substantial financial penalties and, in the most serious cases, criminal prosecution. While genuine payroll mistakes are generally dealt with through civil compliance processes, businesses are expected to have systems in place to ensure employees are paid correctly.
What employers should do:
- Review payroll systems regularly.
- Confirm employee classifications under Modern Awards.
- Conduct periodic payroll audits.
- Correct any underpayments promptly.
2. Changes to Casual Employment
The rules surrounding casual employment have been simplified, making it easier to determine whether an employee is genuinely engaged as a casual.
The focus is now on the practical nature of the employment relationship rather than simply the wording of the employment contract. Employees who are effectively working permanent hours may have greater access to permanent employment entitlements.
Businesses should review long-term casual arrangements to ensure they remain compliant.
3. Right to Disconnect
The new “Right to Disconnect” laws are now operating for most Australian employers.
Employees generally have the right to refuse unreasonable work-related contact outside their normal working hours unless the contact is reasonable in the circumstances. Factors such as seniority, emergency situations and contractual obligations will all be considered.
This change encourages healthier work-life balance while requiring employers to reconsider after-hours communication practices.
4. Increased Focus on Payroll Compliance
Government regulators continue to increase enforcement activity relating to:
- employee classifications;
- award compliance;
- overtime and penalty rates;
- record keeping; and
- payslip accuracy.
Many businesses discover payroll errors only after an employee complaint or Fair Work investigation. Regular payroll reviews are becoming an essential risk management tool.
5. Superannuation Changes
From 1 July 2025, the Superannuation Guarantee increased to 12%, completing the Government’s scheduled increases.
Looking ahead, employers should also prepare for Payday Super, which commences from 1 July 2026 and will require superannuation contributions to be paid at the same time as employee wages rather than quarterly. This will have important cash flow and payroll system implications.
Looking Ahead
Further workplace reforms are already under consideration, including restrictions on the use of non-compete clauses for many employees and additional gender equality reporting requirements for larger employers. Businesses should continue to monitor developments over the coming year.
Final Thoughts
Australia’s workplace laws continue to evolve, and employers are expected to maintain accurate payroll systems, compliant employment contracts and up-to-date workplace policies.
If you are unsure whether your business complies with the latest workplace laws, now is an ideal time to undertake a payroll and employment compliance review. Identifying issues early is far less costly than responding to a Fair Work investigation or employee claim.