Fair Work changes for 2025 have officially landed. For many small businesses, the challenge isn’t knowing what’s coming – it’s making sure you’ve already caught up. Between day-to-day operations, looking after your team, and everything else on your plate, Fair Work compliance updates can easily slip down the list.
If that’s you, you’re not alone. The good news? It’s not too late to review where you’re at and take action.
Here’s a practical checklist of what’s changed with Fair Work policies and what to update your business now. You can also check out our HR policies every small business should have to make sure your frameworks are up to date.
Wage Underpayment Is Now a Criminal Offence
Since 1 January 2025, intentional wage underpayment has been criminalised. One-off honest mistakes aren’t the issue but reliable HR practices and payroll processes are now non-negotiable.
What to check:
- Payroll accuracy: Cross-check pay rates, allowances and super against the correct Award or agreement, classifications and pay grades/levels
- Records: Keep clear documentation on how you classify and pay employees
- Systems: Confirm your Human Resource Information System (HRIS) and payroll software are set up to handle casuals, part-timers and annual wage changes
Fixed-Term Contracts Have New Limits
Fixed-term contracts can’t roll on indefinitely anymore. The rules now mean:
- Maximum of two years (including extensions)
- Only one renewal allowed
- Breach the limit and the employee is considered permanent
What to check:
- Audit contracts: Review all current fixed-term agreements
- Workforce planning: Transition longer roles to permanent
- Update templates: Make sure your standard contracts reflect the limits
Casual Employment Rules Have Shifted
It’s no longer just about what’s written in the contract – it’s about the reality of the work. Casual employees now have the right to request permanent employment if their hours look more “ongoing” than “occasional.”
What to check:
- Patterns: Look at your long-term casuals. Are their hours predictable?
- Onboarding: Give every new casual the Casual Employment Information Statement (CEIS)
- Conversion requests: Have a process to respond within 21 days
The Right to Disconnect Has Arrived
As of August 2025, small business employees now have the right to refuse unreasonable work contact outside their usual hours. It’s not about banning after-hours communication altogether – it’s about respecting boundaries.
What to check:
- Team expectations: Talk openly about when after-hours contact is okay, and when it’s not
- Manager training: Make sure leaders know how to apply the rules fairly
- Lead by example: Respect downtime and be clear when out-of-hours messages don’t need an immediate reply
If some of this still feels like news, don’t panic. But don’t put it off either. The sooner your systems, contracts and processes are aligned with Fair Work Policies, the easier it is to protect your business and support your people.
At Purple Playground, we help small businesses simplify compliance and build fair, people-first workplaces. If you’re after practical advice on how to make these changes in Fair Work Compliance work for your business and your team, we’re just a call or email away → purpleplayground.com.au/contact
