Major Fair Work Changes in Australia: What Employers Must Know in 2024–2025

The Right to Disconnect: Business Impact

Starting 26 August 2025, Australian businesses are required to respect an employee’s Right to Disconnect. In a nutshell, this restricts an employer’s ability to require an employee to engage in work-related communications outside of their regular hours.

We strongly recommend you implement clear boundaries and policies to address your employees’ workday.

Employers should adjust policies and communication practices to ensure compliance. The Government’s aim is to encourages businesses to foster a healthier work environment and reduce psychosocial hazards.

Redefining Independent Contractors: Employer Adjustments

From 26 August 2024, the Fair Work Act amendments could lead to many independent contractors being reclassified as employees, impacting how businesses manage their workforce.

If you have contractors on the payroll, you should re-evaluate their contractor agreements to ensure compliance.

This transition means investing in better employment practices, which can improve retention and morale while aligning with the updated legal framework.

Gig Economy Protections: Employer Responsibilities

26 August 2024 sees new laws empowering the Fair Work Commission to set minimum standards for gig economy workers, formally defined as “employee-like workers” – workers who get work through digital platforms in the food delivery, ride share and personal care industries.

Until now, the law has recognised only two categories of workers: employees and independent contractors.

The law creating the new category of employee-like workers also creates a new category for the companies operating the platforms through which the workers obtain work: “digital labour platform operators”.

Addressing these changes is necessary to avoids potential legal issues but also enhances the company’s reputation as a fair and responsible employer, potentially attracting more skilled gig workers.

Casual Employment Conversions: Business Impact

Changes to the rules dealing with casual conversion come into force on 26 August 2024.

This means reevaluating staffing practices and converting eligible casuals to permanent roles.

There are stringent requirements on employers to ensure compliance. Businesses must adapt by adjusting HR policies, but the long-term benefits may lead to a more stable workforce and improved employee engagement, which can positively impact overall productivity.

Increased Penalties

There are significant increases in civil penalties for underpayments of wages and similar breaches of the Fair Work Act.

The new regime expands the concept of a ‘serious contravention’ and involves potentially fivefold increase in the maximum penalty. They extend to address breaches of the National Employment Standards, modern awards, enterprise agreements, and non-compliance with record keeping or payslip obligations, or compliance notices.

Final Thoughts

Australia’s upcoming workplace law changes are transformative. Proactive adaptation will not only ensure compliance but also build a stronger, more engaged workforce.

Need Support?

Consult with our HR and employment law professionals to ensure your contracts, policies, and practices are aligned. Preparing early could save your business from major legal and reputational risks.

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