Key Employment Law Updates in 2025

Wage Theft Provisions – January 2025

As of 1 January 2025, new ‘wage theft’ provisions took effect as part of the Closing Loopholes Legislation. Employers that intentionally underpay an employee’s wages or entitlements can now be criminally charged. Additionally, the maximum civil penalties pertaining to underpayments have also increased.

An employer may commit a criminal offence where they:

• were required to pay an amount to an employee such as wages or paid leave entitlements
• were required to pay an amount on behalf of the employee, or for their benefit, such as superannuation or a salary sacrifice arrangement
• have intentionally done something that intentionally results in those amounts not being paid on or before the day they were due.

The offence only applies to intentional underpayments that happen after these provisions take effect. This includes where they’re part of a course of conduct that started before the provisions take effect.

New regulation on unfair deactivations and termination of contract for regulated workers – February 2025

On 26 February 2025, the new Digital Labour Platform Deactivation Code and Road Transport Industry Termination Code came into effect. These reforms address gaps in worker protection, especially for those in the gig economy and road transport industry being unfairly deactivated or unfairly terminated.

These provisions aim to address power imbalances in contracting relationships that can lead to unfair terms being imposed on workers. Employees must apply to the Fair Work Commission within 21 calendar days after the deactivation or termination.

Right to Diconnect for Small Businesses - August 2025

From 26 August 2024, eligible employees have the right to refuse employer or third-party contact outside of their scheduled hours, unless the refusal is unreasonable. This means an employee can refuse to monitor, read or respond to contact from an employer or a third party, creating a more balanced work-life environment.

For small businesses, which are employers with fewer than 15 employees, this right will be formally implemented on August 26, 2025.

The Impact of Labor's 2025 Victory

Labor’s recent victory will no doubt impact employment law and your business.

As an employer, all you can do for now is keep up to date with the latest information from the government and employment relations experts. Preparing your business ahead of time is the right way to approach this. Making sure your policies and contracts are accurate and managers are trained accordingly.