In Australia, the landscape of employment law is constantly evolving to adapt to societal shifts and economic changes. Since 2023, several significant updates and amendments have been introduced, shaping the rights and responsibilities of both employers and employees. These changes span various aspects of employment, from minimum wage requirements to updates in workplace discrimination regulations and workplace safety and beyond and will take effect at different dates between 2024 and 2025.
This article addresses mainly the key employment law updates that affect small business entities in Australia.
Minimum Wage
One of the primary focuses of employment law in Australia has been ensuring fair compensation for workers. Since 2023, there have been incremental increases to the national minimum wage (to $23.23 per hour for adult employees in the national system who are award/agreement-free from 1 July 2023) aimed at addressing concerns regarding income inequality and the rising cost of living. Paying minimum wage also applies to labour-hire employers.
Commencing from 1 January 2025, severe penalties, including significant fines (for example, $7,825 million) for companies and imprisonment for individuals (for example, 10 years), were introduced to deter purposive underpayment of wage or superannuation (excluding certain employees) under the Fair Work Act 2009 (Cth) (FWA) nor any industrial instrument, which becomes a criminal offence. In order to be protected from criminal prosecution, small businesses could choose to comply with the Voluntary Small Business Wage Compliance Code.
A union will be able to enter a workplace without a 24-hour notification if they suspect underpayment.
Workplace Protections
In response to growing calls for improved workplace conditions, there have been notable expansions in the realm of employee protections. Legislation has been enacted (commenced on 15 December 2023) to strengthen safeguards against discrimination (including discrimination for employees experiencing family and domestic violence), harassment (including employees experiencing sexual and sex-based harassment), and unfair dismissal, for example, it is unlawful to take adverse action, including dismissal to the above-mentioned employee categories.
Commenced from 15 December 2023, when a non-small business reduced its workforce to fewer than 15 employees and became a small business employer (for example, because of insolvency), it may still be liable to pay its employees redundancy pay.
Additionally, reforms have been introduced to bolster the rights of vulnerable workers, such as casual employees, ensuring they receive proper entitlements and protections under the law. Commencing on 26 August 2024, new criteria (such as post-employment conduct reflecting the true nature of the relationship) will be introduced to determine whether the employee is a casual employee. Moreover, the time frame for a casual employee to request a casual conversion has been shortened, and employers need not offer a formal casual conversion after 12 months of employment when certain criteria are met. Finally, commencing on 26 August 2024, the Casual Employment Information Statement is to be reissued and provided to the employee every 12 months.
Work-Life Balance
In recognizing the importance of work-life balance in promoting employee well-being and productivity, there has been a heightened emphasis on policies supporting flexible work arrangements. Employers are increasingly encouraged to accommodate requests for flexible hours, remote work options, and parental leave, enabling workers to better balance their professional and personal responsibilities.
In addition, commencing on August 2024 or August 2025, employees will have the right to disconnect from their workplace, work, employer, or a third party related to work outside of work hours, provided that no reasonable purpose to maintain contact exists.
Workplace Health and Safety
The safety and health of employees have always been paramount, but recent years have seen renewed attention to these issues. Stricter regulations and enforcement measures have been implemented to ensure that workplaces adhere to rigorous safety standards, with a particular focus on high-risk industries such as construction, mining, and manufacturing. Employers are required to take proactive steps to mitigate hazards (including psychosocial hazards) and create a safe working environment for their employees.
The Work Health and Safety Act 2011 (Cth) will make industrial manslaughter (recklessly or negligently failing to ensure workers’ safety leading to death) an offence commencing on 1 July 2024 that only applies to the Commonwealth public sector.
Penalties for failing to comply are imprisonment for individuals and significant fines for companies.
Legal Advice
Employers and employees must stay informed about developments in Australian employment law and adapt to changing regulations. Employers are advised to stay informed about their obligations under employment law and implement robust compliance measures, including workplace policies, to avoid legal risks and penalties.
In light of the legislative amendments, retain The IP House Lawyer to review your employment agreements, workplace policies and advise on the implications of the new laws in relation to your business’ compliance obligations or your rights under the FWA.
For any further information or queries on the above content, please contact us.
The Author
Jean Kallmyr | Lawyer, The IP House Lawyers | t: 0435 799 831 | e: admin@theiphouse.com.au
Key Contact
Claire Darby | Managing Director/Lawyer, The IP House Lawyers | t: 0412 998 951 | e: claire@theiphouse.com.au
Disclaimer
The information and contents of this publication do not constitute any legal or financial advice. This publication is intended only for reference purposes for The IP House Lawyers’ clients and prospective clients.
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