As seen in Woopi News June 2025
There have been several significant changes to employment law, including:
The Right to Disconnect
Employees have the right to ignore work communications outside of their regular working hours. This came into effect 26 August 2024 for larger employers and will come into effect 26 August 2025 for small employers with15 employees or less.
New Definitions of Casual Employment
New definitions of casual employment under Section 15A of the Fair Work Act, came into effect 26 August 2024. If there is no firm commitment to ongoing and indefinite work, the person is a casual employee.
Changes to Entry-Level Classifications
New pay rates and rules came into effect January 2025 affecting employees classified at the lowest classification level of some modern awards. Including rules regarding how long employees can stay at the lowest classification and increases to payrates.
Wage Theft
Since 1 January 2025 Intentional underpayments is now a criminal offense. Employers who intentionally underpay employees can be criminally charged; this particularly applies to larger employers but can also apply to smaller employers don’t comply with the new Small Business Wage Compliance Code. Large fines apply to those who unintendedly underpay employees ie small employers could be fined up to $99,000 per unintentional breach of the Fair Work Act.
Superannuation Guarantee
Superannuation Guarantee rate will increase from 11.5% to 12% on 1 July 2025.
The government will now pay superannuation on all government funded Parental Leave Payments. Those eligible will receive their superannuation contribution in a lump sum at the end of each financial year that Parental Leave Pay was paid.
To ensure employers are meeting their obligations they should:
- Review modern award classifications
- Review and update employment contracts
- Understand the new definition of casual employment
- Ensure compliance with new wage theft provisions
- Businesses with less than 15 employees, prepare for the ‘Right to Disconnect’
Bernadette Morris – StaySharp Accounting
“Liability Limited by a scheme approved under Professional Standards Legislation”
