Another election, another big list of workplace promises. With the Labor Government re-elected on Saturday, small business owners across Australia are now bracing for what’s next in the world of HR and compliance.

If you’ve already got enough on your plate—staffing, rostering, chasing invoices—the idea of new employment laws rolling in might feel overwhelming. But don’t worry. We’ve broken it all down into bite-sized, plain-English info that every Aussie business owner needs to know.

Let’s dive into what’s coming, what it means for you, and how to stay ahead of the curve.

The Big Picture: Labor’s Workplace Plan for 2025 and Beyond

Labor’s second term builds on its first: continuing to push for stronger employee protections, fairer pay, and increased regulation—especially around gig work, contract work, and mental health at work.

Here’s what’s in store:

1. Changes to Who You Can Hire—and How

Definition shake-up. Labor is backing changes to the definitions of “employee” and “casual employee”. These aren’t just technicalities—they affect everything from entitlements to termination risk.

If you use casuals or contractors, it’s time to reassess. The wrong classification could land you in hot water.

Bright tip: Not sure how your current contracts stack up? BrightAdvice gives you unlimited access to employment law experts who can help you make sense of it all.

2. Limits on Fixed-Term Contracts

Employers will face stricter limitations on rolling over fixed-term contracts. That means no more using back-to-back contracts to avoid offering permanent roles. If your business relies on seasonal or project-based workers, you’ll need to re-evaluate your hiring approach.

3. Intractable Bargaining? The Commission Can Step In

When enterprise bargaining stalls and an agreement can’t be reached, the Fair Work Commission will now have more power to step in and make binding decisions. This change gives workers more leverage—and means employers need to come to the table with solid documentation and good faith.

4. Pay Rises Are Coming

Labor is pushing for real wage growth—and that’s good news for workers, but something employers need to budget for. Here’s the breakdown:

• Award workers: In early April, Labor recommended an “economically sustainable real wage increase” to the Fair Work Commission for 3 million workers. If approved, new wage rates will kick in from 1 July 2025.

• Early childhood education and care workers: Thanks to a $3.6 billion investment, eligible employers can deliver up to 15% above-award pay increases through a new federal grants program.

• Aged care workers: A further $2.6 billion has been committed to fund wage increases. The first pay bump landed in March 2025, with more coming in October 2025 and August 2026.

5. Banning Non-Compete and ‘No Poach’ Clauses

Labor has committed to banning non-compete clauses for workers earning under $175,000. These clauses typically stop staff from joining competitors or starting their own business. While it may improve job mobility, it could make retaining top talent tougher.

Even bigger? They’re also considering a ban on ‘no poach’ agreements—which stop former employees from recruiting their old colleagues. If you’re in industries like tech, consulting, or healthcare, this could be a game-changer.

Time to revisit your contracts. Need help reviewing them? BrightAdvice has your back.

What You Should Do Right Now

With big reforms rolling out in late 2025 and beyond, there’s still time to prepare—but the earlier you start, the better.

Here’s your checklist:

1. Review Your Employment Contracts

Check how you use casuals, contractors, and fixed-term staff. Be ready to adjust classifications or offer permanent roles.

2. Update Workplace Policies

Add a “Right to Disconnect” policy, update leave entitlements, and make sure you’ve got robust anti-bullying and psychosocial hazard procedures.

3. Train Your Staff (and Managers)

From fair work practices to safety training, your team needs to know the new rules. With GLU, BrightHR’s e-learning platform, you can assign and track training with ease.

4. Refresh Your Records and Rosters

Proper records protect you during audits and disputes. With BrightHR’s rostering and record-keeping tools, you’ll never lose track of timesheets, shift swaps, or leave logs again.

One More Thing: Stay Informed (Without Losing Your Mind)

Labor’s re-election means we’re in for another wave of HR reform—and it’s going to affect every business in the country, not just the big end of town.

At BrightHR, we help thousands of Aussie businesses stay compliant, reduce risk, and make smart workplace decisions—without needing a law degree. Whether it’s expert advice, legally-sound policies, or HR software that takes care of the admin, we’re here to help you navigate it all.

Don’t wait for the laws to pass before you act. Start preparing today—and let BrightHR make it simple.

Want expert help to review your contracts or policies?

Book a free call with our BrightHR team now.