As 2025 begins, small businesses across Australia need to prepare for major workplace law changes designed to improve fairness, transparency, and work-life balance. Here’s a quick guide to what’s coming and how to adapt.
Criminal penalties for wage theft
From January 1, 2025, intentionally underpaying workers will become a criminal offense. While honest mistakes won’t be penalized, it’s crucial for businesses to:
• Stay compliant with National Employment Standards.
• Keep up with award obligations.
• Maintain accurate records.
The right to disconnect
Starting August 26, 2025, employees will have the right to ignore work calls and emails outside of their regular hours when it’s reasonable to do so.
To prepare, businesses should:
• Update employee contracts and policies.
• Train managers on respecting these boundaries.
• Establish systems to ensure business continuity while honoring this right.
Award changes
On January 1, 2025, updates to 37 modern awards will come into effect, including:
• Revised pay rates.
• New limits on how long employees can remain in entry-level positions.
Industry associations are a great resource for ensuring you’re across the changes.
Changes for WA businesses
From January 31, 2025, Western Australia will introduce 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% to 25%.
• Expanded rights for long-term employees to request flexible work.
Business owners in WA should reach out to their associations for tailored advice.
Superannuation on parental leave
From July 1, 2025, the government will pay 12% superannuation on parental leave payments. While this doesn’t impact employer contributions, it’s a positive step toward 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. This 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 accepting feedback on this proposal until March 7, 2025. These updates are designed to reflect the evolving workplace landscape. Staying informed and proactive will help small businesses navigate these changes smoothly.
For detailed guidance, visit smallbusinesspeak.org.au.
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