2025 delivered some of the most significant workplace law changes Australia has seen in years. Both federal reforms and state-level developments (particularly in Queensland) have reshaped employer obligations, from wage compliance and work hours to anti-discrimination and safety. As we enter 2026, further changes are on the horizon. Below is a summary of the major employment law updates that took effect in 2025 and a preview of confirmed or likely changes in 2026 that HR professionals and employers should be ready for. 

Major Employment Law Changes in 2025 

Federal Workplace Reforms in 2025 

• Criminalisation of Wage Underpayment: Intentional wage underpayments (wage theft) became a criminal offense from 1 January 2025, with employers facing substantial fines and even imprisonment for deliberate underpayment. While inadvertent payroll mistakes are treated differently, businesses are now expected to maintain rigorous payroll compliance to avoid harsh penalties. 

• “Right to Disconnect” for Employees: Employees now have a statutory right to refuse unreasonable work-related contact outside of ordinary working hours. This right was first applied to larger employers in 2024 and extended to small businesses (<15 employees) from 26 August 2025.  

• Casual Employment Reforms – Conversion to Permanent: New laws introduced an “employee choice” pathway for casual employees to convert to permanent roles. Eligible long-term casuals can now proactively request conversion, and employers must respond within set timeframes and can only refuse on limited, defined business grounds. This reform applied to large employers in 2024 and to small businesses from August 2025.   

• Protection of Penalty Rates: Amendments to the Fair Work Act 2009 (Cth) now limit the Fair Work Commission’s ability to reduce penalty rates or overtime rates in awards. This change ensures employees cannot be made worse off through award variations or annual salary “offset” arrangements. It effectively locks in existing penalty rates so that future award changes cannot erode these entitlements. 

• Increases to Pay and Key Thresholds: Effective 1 July 2025, a number of financial thresholds increased. The National Minimum Wage and all modern award wages rose by 3.5%, bringing the full-time minimum to $948 per week ($24.95/hour). The superannuation guarantee also reached 12% (up from 11.5%), marking the final step in the phased super increase. Additionally, the Fair Work high-income threshold was raised to $183,100 per annum, which impacts unfair dismissal eligibility and award coverage. The cap on unfair dismissal compensation accordingly increased to around $91,550 (being half the new threshold). 

• Fixed-Term Contract Limitations: New restrictions took effect limiting the use of rolling fixed-term contracts. Except for certain industries and genuine short-term needs, employers generally cannot keep employees on successive fixed-term contracts beyond two years or two renewals. This closes a loophole that had allowed some long-term employees to be engaged on perpetual temporary contracts. 

• Paid Parental Leave Protections: In November 2025, the Fair Work Act was amended (the “Baby Priya’s Law”) to strengthen parental leave rights. Employers can no longer withdraw or cancel an employer-provided paid parental leave entitlement if an employee’s child is stillborn or dies shortly after birth. Previously, while employees could still access unpaid leave and government PPL in such tragic cases, some employers’ own PPL policies did not cover it. Now, unless expressly agreed otherwise, a grieving parent remains entitled to any paid parental leave offered under their employment terms. 

State-Level Developments in 2025: Focus on Queensland 

• Queensland Anti-Discrimination Law Overhaul: Queensland enacted the Respect at Work and Other Matters Amendment Act 2024 (Qld), representing the biggest update to the Anti-Discrimination Act 1991 (Qld) in decades. Effective 1 July 2025, this reform was set to introduce six new protected attributes (including irrelevant criminal record, physical appearance, irrelevant medical record, being a victim of domestic violence, having an expunged conviction, and experiencing homelessness) and to imposed a positive duty on employers to take reasonable steps to eliminate unlawful discrimination, sexual harassment and victimisation. Notably, “pregnancy” was also expanded to “pregnancy or potential pregnancy” to protect those who might become pregnant. Update: Following a change of state government in late 2024, these reforms have been paused for further review and consultation, creating some uncertainty in Queensland. However, employers should be aware of the likely direction of these changes, as pressure mounts to implement them and many businesses are voluntarily updating policies in anticipation of the new requirements. 

• Sexual Harassment Prevention Plans (WHS Requirement in QLD): As part of Queensland’s focus on psychosocial risks at work, a new Work Health and Safety regulation took effect on 1 March 2025 requiring PCBUs (employers) to implement a written sexual harassment prevention plan. Under the Work Health and Safety (Sexual Harassment) Amendment Regulation 2024 (Qld), employers must identify the risk of sexual or sex-based harassment in their operations and detail control measures to prevent it. The plan should also document consultation undertaken and consider workplace factors (like culture, diversity, remote work, etc.) that might enable harassment. This QLD-specific requirement aligns with the broader “psychosocial hazard” duties emerging around Australia. 

• Workplace Health & Safety and Psychosocial Risks: Beyond Queensland, other states introduced notable safety measures. For example, Victoria issued new Occupational Health and Safety Regulations effective 1 December 2025 to explicitly require employers to identify and manage psychosocial hazards (such as work-related stress, bullying, or fatigue) just as they must physical hazards. These Victorian regulations mandate assessing psychological risks and implementing controls, underscoring a national trend towards stricter psychosocial safety compliance. New South Wales also moved to bolster its laws – including creating a standalone SafeWork NSW regulator and expanding reporting obligations for psychosocial incidents. Employers in all jurisdictions should expect greater enforcement focus on mental health and safety in the workplace. 

(Other states saw changes too, such as NSW expanding anti-bullying protections in its industrial relations laws, but the highlights above cover the most significant developments relevant across Australia.) 

What to Expect in 2026: Upcoming Changes 

Looking ahead, 2026 promises further evolution in employment law. Several reforms have been confirmed for implementation, and additional proposals are likely to solidify. HR managers and employers should keep the following on their radar: 

• Payday Superannuation: A major change in 2026 is the shift to real-time superannuation contributions. From 1 July 2026, employers must pay super at the same time as wages (each pay cycle), rather than quarterly. Legislation passed in late 2025 will require that super payments reach employees’ funds within 7 days of each payday. This reform, nicknamed “Payday Super”, is designed to ensure workers receive their super entitlements promptly and to prevent superannuation underpayment. It will mean payroll systems and cash flow processes need adjustment, since even brief delays may attract interest and penalties from the ATO. 

• Paid Parental Leave Extension: The Federal Government’s Paid Parental Leave (PPL) scheme will expand again on 1 July 2026. From that date, the total government-funded parental leave available to new parents will increase from 24 weeks to 26 weeks (at the National Minimum Wage). This is the final step of a phased plan (up from 18 weeks in 2022). Notably, since 1 July 2025 the government is also paying employer superannuation contributions (12%) on PPL payments – a boost to women’s retirement savings. Employers should review their parental leave policies in light of these changes, especially if they offer supplemental paid leave, to ensure coordination with the enhanced government entitlements. 

• Continued Focus on Psychosocial Safety: Expect further developments in workplace health and safety, especially around psychological health. Multiple states are moving toward harmonisation of psychosocial hazard regulations. In 2026, Victoria’s new code and regulations will be fully in force, and other jurisdictions (like Queensland, which already has a Code of Practice) may strengthen their requirements for managing risks like stress, bullying, and fatigue. Employers should proactively update WHS risk assessments and training to cover psychosocial factors, as regulators will increasingly treat mental injury prevention with the same rigor as physical safety. 

• Gender Pay Gap Reporting and Pay Equity: Workplace gender equity will face greater scrutiny in 2026. Under strengthened Workplace Gender Equality Act (WGEA) rules that took effect in 2024, medium and large employers must report detailed gender-segregated pay data, and for the first time Australia’s federal agency is publishing each employer’s gender pay gap metrics. This transparency push is reshaping employer expectations – companies may face reputational pressure to improve pay equity now that data is public. In addition, the government has set targets for women in leadership at larger firms and is encouraging proactive pay equity audits. Bottom line: businesses should be reviewing internal pay structures for any unjustified disparities and be prepared to demonstrate progress on closing gender pay gaps. 

• Industrial Relations Reforms and Reviews: The federal government continues to review and refine the significant Fair Work Act reforms implemented between 2022 and 2024, with further adjustments possible through 2026. These reforms have already reshaped key areas including employee versus contractor classification (with a return to a multi-factor, “practical reality” test), protections for certain “employee-like” gig workers, multi-employer bargaining, and expanded flexible work rights. The government’s Closing Loopholes agenda has also progressed, most notably through the introduction of the “same job, same pay” regime for labour hire workers, which commenced in late 2024 and enables the Fair Work Commission to require labour hire employees to be paid no less than directly engaged employees performing equivalent work. Employers using labour hire or contractor arrangements should already be reviewing their compliance. Further reform remains on the horizon, including a proposed ban on post-employment non-compete clauses for employees below the high-income threshold, consulted on in 2025 and not expected to commence before 2027. While no major new federal industrial relations legislation commenced at the very start of 2026, the reform agenda remains active and employers should be prepared for continued regulatory evolution. 

Conclusion: Ensuring Compliance and Preparing for 2026 

Employers and HR professionals should take proactive steps to ensure they are compliant with the 2025 reforms and well-prepared for the year ahead. Practically, this means reviewing and updating workplace policies (for example, incorporating the right to disconnect into communication protocols, and updating anti-discrimination and harassment policies to reflect new state and federal requirements). It’s crucial to train managers and staff about these new rights and obligations – from wage compliance and record-keeping to handling flexible work requests or parental leave with empathy and legal compliance. Businesses should also audit their payroll and HR systems now: ensure minimum wage increases and superannuation changes have been implemented, and get systems ready to handle payday super by July 2026. Consider conducting a pay equity audit in light of the new transparency era, and strengthen WHS processes to cover psychosocial risks (especially if operating in jurisdictions like Queensland or Victoria). Finally, staying informed is half the battle – keep an eye on legislative developments through 2026 and seek advice from legal experts (such as Winter Workplace Consulting) when in doubt. By taking these steps, employers can confidently navigate the current laws, avoid penalties, and foster a fair, safe and compliant workplace as the employment law landscape continues to evolve.