How recent regulatory changes are redefining the HR landscape

With International HR Day taking place on Tuesday (20 May), it’s time to recognise the pivotal role HR professionals play in shaping positive workplaces. It is important to reflect on the changes and challenges that HR professionals have faced over the past year, writes Warwick Ryan.

As the employment landscape in Australia continues to evolve, it’s critical for HR teams to stay updated on recent and upcoming legislative changes. That is a challenge without the right legal advice. These developments reflect a growing emphasis on employee wellbeing, workplace fairness, and organisational resilience. The overview below highlights the key changes shaping HR practice, helping teams remain proactive and well-prepared.

Key recent and forthcoming legislative changes impacting HR professionals

Over the past year, there have been several significant legislative changes in the Australian employment landscape affecting how HR professionals manage their workforce. These changes reflect evolving workplace dynamics and an increased focus on employee rights and wellbeing.

1. Criminalisation of wage theft (Effective 1 January 2025)

The introduction of criminal penalties for intentional wage theft marks a significant shift in employer accountability.

Employers who intentionally underpay staff can face criminal charges, including significant fines and up to 10 years’ imprisonment. Civil penalties for underpayments have also increased substantially.

HR professionals should review strategies to mitigate the risks of wage underpayment. This includes:

• Conducting a thorough audit of employee pay and entitlements.

• Ensuring payroll systems are up to date and compliant with awards, enterprise agreements, and minimum wage requirements.

• Provide training for managers and payroll staff on the relevant employee minimum entitlements to prevent any errors.

• For small businesses, review the Voluntary Small Business Wage Compliance Code (Code) and consider further steps recommended in the Code that can be adopted. For employers not covered by the Code, it is still worth a read.

2. Right to disconnect (Effective 26 August 2024)

Employees have gained the right to refuse contact from their employer outside working hours unless refusal is unreasonable. This applies to most businesses from August 2024 and to small businesses from August 2025.

Line managers also need to be clear with workers about business and role expectations by communicating upfront with employees about working hours and organisational culture.

Businesses should be considering their current work practices and business requirements, and the policies that guide them, and making updates accordingly. They need to evaluate how remuneration is structured in the employment contracts to make clear there is provision to cover the additional hours.

3. New casual employment rules and ‘Employee Choice Pathway’ (From 26 August 2025)

From 26 August 2024, a new definition of casual employment applies. From 26 February 2025 (or 26 August 2025 for small businesses), casual employees can notify their employer if they wish to convert to permanent status, shifting the onus from employer to employee.

4. Superannuation guarantee increase (From 1 July 2025)

The minimum superannuation guarantee rate will rise to 12 per cent from 1 July 2025. HR professionals must ensure payroll systems are updated, budgets are adjusted, and employees are informed about the changes. This may also impact wage negotiations and overall remuneration strategies.

5. Ban on non-compete clauses (proposed)

The government has announced plans to ban non-compete clauses for workers earning under a certain threshold, though this is not yet law. HR will need to review and amend contracts and find new ways to protect business interests.

6. New harassment and psychosocial risk obligations

New codes and obligations around sexual and gender-based harassment require prevention plans, risk assessments, and ongoing training, adding to compliance demands and necessitating proactive cultural changes.

7. Increase in employment-related claims and disputes

There has been a surge in employment-related claims and applications to the Fair Work Commission, reflecting greater employee awareness and willingness to enforce rights, increasing HR’s workload in dispute management.

8. Increasing workers’ compensation claims

There has also been a surge in psychosocial claims in the last five years, placing considerable pressure on the viability of state government workers’ compensation schemes. Governments are looking to better filter the genuine from the opportunistic claims. The increase is impacting the management of workplace disciplinary processes.

9. State-based legislative variations

State-specific changes, such as increased casual loading in Western Australia, new harassment prevention requirements in Queensland, and workplace surveillance obligations in NSW, require HR to ensure compliance across different jurisdictions.

10. Working from home (WFH)

The widespread adoption of remote and hybrid work models introduces new challenges for HR in ensuring workplace health and safety compliance, maintaining productivity, and fostering employee engagement. Employers need clear WFH policies covering expectations, communication protocols, ergonomics, and mental health support.

By staying on top of these changes, HR professionals can continue to build fair, supportive, and resilient workplaces. Proactive adaptation will ensure organisations remain compliant and well-prepared for the future.

Warwick Ryan is a member of Hicksons’ Workplace Relations, Employment and Safety team.