2025 delivered some of the most significant employment law reforms Australia has seen in years. The focus has been on stronger worker protections, greater accountability for employers, and closing perceived loopholes in workplace laws. As we move into 2026, further operational changes are expected.

What Happened In 2025?

1. Wage Theft Criminalised

Intentional underpayment of wages can now attract criminal penalties, including substantial fines and potential imprisonment. While genuine mistakes remain distinguishable, employers are expected to maintain accurate payroll systems and proactive compliance.

2. Right to Disconnect

Employees now have a statutory right to refuse unreasonable out-of-hours work contact.

This was applied to larger businesses earlier and extended to small businesses from August 2025.

3. Casual Employment Reforms

Eligible casual employees can now request conversion to permanent employment under a clearer “employee choice” pathway.

Employers must respond within set timeframes and can only refuse on limited grounds.

4. Penalty Rates Protected

Changes to the Fair Work Act limit the Fair Work Commission’s ability to reduce penalty and overtime rates, ensuring employees are not left worse off through award variations or offsetting annualised salaries.

5. Pay & Threshold Increases (1 July 2025)

Increases to the following:

1. national minimum wage and award rates;
2. superannuation guarantee reached 12%; and
3. high-income threshold to $183,100.

6. Fixed-Term Contract Restrictions

Further limits were placed on rolling fixed-term contracts, closing loopholes that allowed long-term insecure work arrangements (with limited industry exceptions).

7. Paid Parental Leave Protections

Employers can no longer withdraw employer-funded paid parental leave where a child is stillborn or dies shortly after birth, strengthening family-related workplace protections.

What To Expect In 2026

Payday Superannuation

From 1 July 2026, employers will be required to pay superannuation at the same time as wages, rather than quarterly. This will require payroll system and cash-flow planning adjustments.

Increased Focus on Psychosocial Safety

States (including Victoria) are strengthening obligations to manage psychological health risks at work, such as workload, bullying and stress.

Continued Casual & Award Reform

Expect further clarification from courts and the Fair Work Commission on:

1. casual conversion disputes, and
2. award classifications and modernisation.

How can FC Lawyers help?

At FC Lawyers, our experienced business and corporate team can assist with advising on, employment law, drafting contracts and other related matters.

Contact our team today to discuss your legal needs.