Labor wins - what does this mean in 2025
Here’s a breakdown of the key reforms that will either remain in play or come into play now Labor have formed Government, and what you need to consider or implement.
If you are a small business owner, there are few nuances and you need to act on August 2025 requirements, for all other businesses you will already be across a number of these changes.
Note: A small business in the eyes of fair work are those with less than 15 people.It is based on the total of employees, not full time equivalents. This includes full timers, part timers and regular casuals.Right to Disconnect here to stay - August 2025 for small business
Employees cannot be penalised for ignoring work-related calls, emails, or messages outside of work hours.
Get across the rules and definitions here https://www.fairwork.gov.au/employment-conditions/hours-of-work-breaks-and-rosters/right-to-disconnect
Compliance is required by August 2025 for small business. This means, review the rules and prepare a process and policy to share with your employees.
Action Steps
Review your current practices
Consider changes to communication outside work hours
Prepare a policy/procedure to share the definitions with your employees (there are circumstances where people can be contacted)
Roll out the policy and communicate with your employees
Casual to Permanent Conversion - August 2025 for small business
New rules came into play, from February 2025 allowing casual employees after 6 months (12 months for small businesses) to request permanent employment through the employee choice pathway.
Small businesses need to adopt this approach by August 2025.
read up on the process here https://www.fwc.gov.au/documents/resources/fact-sheet-changes-to-casual-employment-2024-08-19.pdf
Action steps
If you have casuals, understand the process and the definitions
Make sure you are responding correctly to the request for permanent employment
Ensure your casual workforce are receiving the casual information statement regularly (every 6 months)
Criminal underpayment laws
From 1st January 2025 intentional underpayment of wages or entitlements can be a criminal offence
Small businesses, if you think you have underpaid an employee, please review and follow the steps provided in the voluntary small business wage compliance code. https://www.fairwork.gov.au/about-us/compliance-and-enforcement/criminal-prosecution/voluntary-small-business-wage-compliance-code
Action Steps
Do regular checks on your pay rates
Understand your award
Rectify any discrepancies as soon as possible
Keep your employees informed
Consider outsourcing your payroll
Superannuation Payments
From 1st July 2025 superannuation guarantee contributions by the employer increase to 12%.
Action steps
Prepare your budgets and payroll processes to include this increase
Communicate to your employees of the super changes and how (if any) it affects their remuneration
A few reforms to keep an eye on (not yet legislation)
Pay Day Super
Employers will be required to pay their employees super at the same time as their salary /wages.
Nothing to do now, timeline not established as yet.
Ban on Non-compete clauses and competition law changes
Prohibited for employees earning below $175,000 (high income threshold).
Review of non-solicitation clause for clients and coworkers
Closing of loopholes in competition law including;
capping of pay and conditions without agreement
The use of 'no poach' agreements to block employees from being hired by competito
Nothing to do now, timeline for this to take effect is currently 2027
Other areas that may be relevant
Increased protections for gig economy workers, particularly in the transport sector.
New reforms introduce a national licensing scheme to regulate labour hire providers.
If this feels overwhelming, touch base for a chat.