3 Australian employment law trends you need to know

Oh the times they are a changin'

Oh, are they? 

The rapid changes in employment law in Australia by the Albanese government over the past two years have left HR teams scrambling over new legislation, trying to overcome some of the most significant employment reforms in the past twenty years.

And 2025 will be the year HR departments see these changes put into practice. 

While we can’t do the guesswork for you, we’ve reviewed some of the most important legislative changes that you need to be on top of to ensure your compliant all year round.

Right to disconnect 

We’re not perfect. 

Sometimes we get it wrong. 

The right to disconnect hasn’t had the impact that we thought it would. 

When the legislation was first introduced in August 2024, many of us in HR were concerned about its effect at work which promoted organisations to implement significant new policies and procedures to manage contact out-of-hours and working from home policies. 

And that’s ultimately good. It forced organisations to think about how they interact with employees out of hours, general working hours, ordinary hours and how they structure work.

But six months on, little has changed in practice. Because organisations are able to manage disputes about contact out of hours with employees without the help of legislation. 

And so while disputes still arise and will continue too, the right to disconnect has been more effective in sparking broader conversations about workplace flexibility, rather than serving as a tool for resolving conflicts between employers and employees.

HR takeaway

Have a conversation again and see how employees and executives are feeling about flexibility. Do you need to revisit them? 

Ensure managers fully understand their obligations regarding who is entitled to request flexible work arrangements, the factors that must be considered and the circumstances under which a request can be lawfully denied.

Wage theft 

These days, it’s not uncommon to open up the paper or hear a headline on the news to the tune of “So and so company owes $100 million in unpaid wages to employees.”

On July 1, 2024, Australia introduced wage theft laws that now criminalise the intentional underpayment of wages. Organisations that haven’t adequately prepared for these changes risk getting caught off guard, with potential penalties such as fines of up to $250,000 per breach if found in violation. Now, the wage theft legislation isn’t aimed at payroll errors or miscalculations and rather focuses on intentional underpayments, whether that’s for hours worked, overtime, or withheld entitlements.

Now, the wage theft legislation isn’t aimed at payroll errors or miscalculations. It focuses on intentional underpayments, where employers knowingly pay their workers less than they’re legally entitled to, whether it’s underpaying for hours worked, failing to compensate for overtime or withholding entitlements. 

The key word is intentional. Mistakes happen. Honestly. But your organisation must still ensure it addresses possible underpayments promptly.

Small businesses with fewer than 15 employees are excluded. But organisations with more than 15 employees need to ensure watertight compliance.

HR takeaway

Make sure board and executive management teams are across the organisation's plan to mitigate risks. Get ahead of some of the issues by communicating to other executives and introducing the legislative changes. 

Suggest it’s a good time to pause, look at systems and processes and do a compliance check. For example:

1. Review payroll systems
2. Check employment classifications
3. Train payroll employees

Martian Logic’s HRIS automates payroll data management, ensuring every hour is tracked accurately and all deductions are applied correctly. By integrating seamlessly with your existing systems, it cross-checks employment classifications to flag inconsistencies before they turn into legal issues. 

The reporting tools provide real-time insights, allowing you to identify and address discrepancies as they occur. This proactive approach not only reduces manual errors but also streamlines your compliance efforts, keeping you one step ahead of wage theft risks and ensuring that your employees get paid what they're truly due.

This is a great opportunity for HR to position themselves as strategic, trusted partners in the business and avoid being brought in at the last minute to clean up a larger problem.

Employees are becoming more aware of their rights

Employees once turned to HR to find out what they’re rights are, but now they know their rights. 

Because employees' workplace rights have become more prominent in both mainstream and social media. Trends like the four-day work week and the right to disconnect have gained traction among younger generations because there’s so much more information online through platforms like TikTok and Instagram.

However, the rise in employees being self-taught also increases the risk of misinformation spreading within an organisation.

It’s HR’s job to be at the front line of dealing with all myth busting, because it can be easy to misunderstand some of this legislation, especially when videos proactively appear online about employees being required to return to the office. 

For example, with the right to disconnect, there was so much information out there in the general community and many people assumed the right was something that it wasn’t. Some employees thought it meant employers could not contact them after working hours, whereas that’s not what the law states.

HR takeaway

Arm yourself with key information regarding the legislative framework, awards, enterprise agreements, contracts and how they all interact with each other. 

Having some kind of base-level understanding of the legislation is really important, so you understand the concepts and you can answer those questions that you get internally from time to time. 

It takes time to provide good, accurate information to employees. So consider creating infographics or a fact sheet to take away the guessing for employees. 

Note that with the possibility of the Liberal government coming into power in 2025, we could see the winding back of some of these changes. But if the Labour party comes back into power again, there could be further fine tuning of some of the policy ideals that underpinned these recent changes.

So stay proactive, review your payroll system and let an initiative HRIS help you navigate these legal and compliance changes with confidence.

About us

Martian Logic has helped businesses refine their HR strategies for years by offering simple, scalable solutions that let teams thrive. Our intuitive HRIS does more than manage data—it streamlines payroll processing and keeps you ahead of changing legal and compliance requirements. With robust reporting and real-time insights, you can quickly identify discrepancies, adapt to new legislation, and ensure accurate record-keeping. Whether you’re looking to manage payroll seamlessly or navigate complex legal reforms, our system empowers your HR team to focus on what truly matters, your people.