The 2025 year saw a number of changes in the industrial relations and workplace space, several of which has come into effect during 2025 while other legislative changes are scheduled for 2026.
Brief overview of 2025 changes:
- Right to Disconnect: Employees have the right to refuse monitor, read or respond to communication from an employer outside of ordinary working hours, unless such refusal is unreasonable. The right to disconnect commenced for employees of small business’ employers from 26 August 2024, and for employees of non-small business employers from 26 August 2025.
- Baby Priya’s Act: Previously, if an employee’s child was stillborn or died, that employee would be entitled to unpaid parental leave under the Fair Work Act 2009 (Cth) or government funded parental leave. From 7 November 2025, the entitlement to receive paid parental leave in these circumstances will apply to employer funded parental leave schemes unless expressly agreed otherwise.
- Set-off clauses may lead to underpayments: In a Federal Court judgment, the Court considered whether employees covered by an Award, and paid annualised salaries, were underpaid because of contractual set-off clauses. The Court found that set-off clauses may only be applied per pay period, as opposed to annually, to make up for overtime worked.
Changes to be aware of in 2026:
- Payday Super: From 1 July employers will be required to pay superannuation at the same time as paying an employee’s salary or wages. Super contributions must reach the fund within 7 calendar days, failing which an employer will be liable for the new superannuation guarantee charge.
- Paid Parental Leave expanded: Effective 1 July 2026, the government funded Paid Parental Leave will be expanded to 26 weeks. Employers should review their current parental leave policy and consider if amendments are required.
- NES Review: The Fair Work Commission has commenced with a review of the National Employment Standards for the first time since its introduction in 2009. The review’s focus is not on flexible working arrangements, casual employment, parental leave or family and domestic violence leave, however the review could result in significant changes to standards such as annual leave entitlements and maximum weekly hours
- Gender equality target-setting requirements for large businesses – Starting in April this year, Australian employers with 500 or more employees will be required to select and work towards specific gender equality targets. Announced by the Workplace Gender Equality Agency (WGEA) last year, the reforms impact close to 2000 employers, who will have to choose three targets from a set list that includes both numerical goals and action-based initiatives.
The start of the year is an ideal time to review your internal policies and procedures. As an employer you must ensure your company is compliant with effective legislative and workplace changes or make necessary amendments to ensure compliance.
For questions about your workplace obligations, or a review of internal policies and procedures, contact the Workplace Relations Team:
📞 (02) 6175 5900
📧 workplace@mba.org.au
