31st March, 2025
As we move further into 2025, new changes to Australia’s workplace laws are impacting businesses nationwide. These reforms, particularly those introduced under the Fair Work Legislation Amendment (Closing Loopholes) Act 2023, are reshaping how businesses manage their workforce. Here are the key updates employers should be aware of.
Criminalisation of Wage Theft
From 1 January 2025, the criminalisation of wage theft has become a significant change. Employers, whether individuals or companies, can now face criminal charges for intentionally underpaying employees. This includes wages, allowances, superannuation, and other entitlements.
While genuine mistakes or miscalculations are not subject to criminal penalties, employers must act promptly to correct any errors. Failure to do so could result in severe penalties, including fines up to AUD 8.25 million for companies or up to 10 years’ imprisonment for individuals involved in wage theft.
New Casual Employment Conversion Pathway
A significant change took effect on 26 February 2025, introducing an ‘employee choice pathway’ for eligible casual workers to transition to permanent roles. Under this new law, casual employees who have been employed for at least six months can now request permanent status if their role no longer meets the definition of casual employment. For small businesses, this provision will apply from 26 August 2025, with a 12-month employment requirement for casuals.
Changes to Enterprise Agreements
The Closing Loopholes legislation also introduces new requirements for enterprise agreements. Employers will now need to include specific model terms created by the Fair Work Commission (FWC), covering areas such as flexibility, consultation, and dispute resolution. An employer typically submits an enterprise agreement for approval when creating a new agreement or when renewing or modifying an existing one. If the agreement does not meet the new requirements, the FWC will automatically add the necessary terms during the approval process.
Fairer Termination Regulations
The new regulations surrounding unfair contract terminations also affect regulated workers. Employers must ensure that terminations comply with updated guidelines to avoid legal issues.
As these workplace changes unfold, it’s crucial for employers to stay compliant to avoid potential legal risks. At Castrikum Adams Legal, we specialise in corporate and contract law, offering expert guidance to help businesses navigate these reforms smoothly.
For more information on the legislative changes under the Closing Loopholes Act, click here.
Whether you need assistance with ensuring compliance with employee rights or updating enterprise agreements, Castrikum Adams Legal is here to help you protect your business. Contact us today to learn more about how we can support your organisation in managing these workplace changes effectively.
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