Fair Work Changes 2025: What Employers Need to Know

Australian workplace laws continue to evolve, with significant changes affecting how employers manage their workforce. From minimum wage increases to new casual employment rules, staying compliant requires ongoing attention.

This guide covers the key Fair Work changes impacting employers in 2025 and what you need to do to stay on the right side of the law.

Minimum Wage Changes

The Fair Work Commission reviews and sets the national minimum wage annually. The new rates take effect from the first full pay period on or after 1 July.

National Minimum Wage

Superannuation Guarantee

Casual Employment Changes

Recent amendments have significantly changed how casual employment is defined and managed.

New Definition of Casual Employment

An employee is only casual if there is no firm advance commitment to continuing, indefinite work according to an agreed pattern of work. This means:

• Regularity of hours doesn't automatically make someone permanent
• The written employment contract is a key factor
• Casuals must receive a Casual Employment Information Statement (CEIS)

Right to Request Casual Conversion

Casual employees can request to convert to permanent employment if they:

• Have worked for the employer for at least 12 months
• Have worked regular hours for the last 6 months
• Could continue to work those hours as a permanent employee

Casual Loading vs Leave Entitlements

If a casual employee is later reclassified as permanent (by court or otherwise), the casual loading already paid can offset leave entitlements owed.

Right to Disconnect

New rules give employees the right to refuse unreasonable work contact outside of working hours.

What This Means for Employers

• Employees can refuse to monitor, read, or respond to contact from employers outside work hours
• Contact from third parties (customers, clients) is also covered
• The refusal must be reasonable given the circumstances

When Contact May Be Reasonable

• Emergency situations
• On-call arrangements
• Nature of employee's role (e.g., senior managers)
• Method of contact and level of disruption
• Whether employee is compensated for availability

Same Job, Same Pay

Labour hire employees are entitled to the same pay as directly employed workers doing the same work.

Key Points

• Applies when labour hire workers work alongside direct employees
• Host employer's enterprise agreement rates become the minimum
• Disputes can be taken to Fair Work Commission

This primarily affects businesses using labour hire rather than small businesses directly employing workers.

Fixed Term Contracts

New rules limit the use of fixed-term contracts:

Key Restrictions

• Maximum duration: 2 years (including renewals)
• Maximum renewals: Cannot extend beyond 2 years or more than once
• Information requirements: Must provide Fixed Term Contract Information Statement

Exemptions

These limits don't apply to:

• Employees earning over $175,000 annually
• Specialised skills required for a genuine limited period
• Training arrangements
• Essential work during emergencies
• Government-funded contracts or schemes

Flexible Working Arrangements

Employees have expanded rights to request flexible working arrangements.

Who Can Request

• Parents of school-age children or younger
• Carers
• People with disability
• 55 years and over
• Employees experiencing family and domestic violence
• Pregnant employees

Employer Obligations

• Must genuinely attempt to reach agreement with the employee
• Can only refuse on reasonable business grounds
• Must respond in writing within 21 days
• Must discuss alternatives if refusing the specific request

Paid Family and Domestic Violence Leave

All employees (including casuals) are entitled to 10 days paid family and domestic violence leave per year.

Key Features

• Does not accumulate if unused
• Paid at full pay rate
• Available from first day of employment
• Confidentiality requirements apply

Wage Theft and Underpayment

Criminal penalties now apply to intentional wage underpayment.

Criminal Offences

• Intentional underpayment: Up to 10 years imprisonment for individuals
• Company penalties: Up to 3x the underpayment amount or $7.825M (whichever is greater)
• Falsifying records: Similar penalties apply

Compliance Checklist for Employers

Key Dates for 2025

Penalties for Non-Compliance

Fair Work penalties are significant and have increased:

Getting Help

Fair Work Ombudsman

The Fair Work Ombudsman provides free information and resources:

• Pay and conditions tool (check Award rates)
• Templates for employment contracts and policies
• Small business helpline
• Best Practice Guides

When to Get Professional Advice

• Complex employment arrangements
• Disputes or potential claims
• Enterprise agreement negotiations
• Restructures or redundancies
• When in doubt about compliance

Key Takeaways

• Review wages annually: Check Award rates after each Fair Work Commission decision
• Casual rules have changed: New definition and conversion rights require attention
• Right to disconnect: Coming to small business in August 2025
• Fixed-term limits: Maximum 2 years including extensions
• Super increases to 12%: From 1 July 2025
• Penalties are severe: Intentional underpayment is now a criminal offence
• Keep records: Accurate time and wage records protect you