With the new financial year starting with a bang, so too does further employer obligations as it relates to the employment of your organisations most important asset, your staff!
With a flurry of compliance and amendments to employment related legislation during 2024, the fun continues into 2025 with a focus on
- Right to disconnect – impact on Small Business Employers from 26 August 2025
- Employee choice pathway – impact on Small Business Employers from 26 August 2025
- Psychological Health Regulations– effective from December 2025
- Right to disconnect
What is it?
The Right to disconnect becomes effective on 26 August 2025 for small businesses with less than 15 employees. The right to disconnect protects employees who refuse to monitor, read or respond to contact or attempted contact outside their working hours, unless their refusal is unreasonable. This includes contact, or attempted contact, from their employer, or another person, if the contact or attempted contact is work-related.
Certain matters need to be considered when determining whether or not an employee’s refusal is unreasonable. These include:
- the reason for the contact or attempted contact
- how the contact or attempted contact is made and the level of disruption it causes the employee
- the nature of the employee’s role and their level of responsibility
- the employee’s personal circumstances, including family or caring responsibilities
- whether the employee is compensated or paid extra for:
– remaining available to work when the contact or attempted contact is made, or
– working additional time outside of their ordinary hours of work.
If there is a dispute about an employee’s right to disconnect, employers and employees first need to try to resolve it themselves. If they can’t resolve the dispute at the workplace level, then there are avenues to apply to the Fair Work Commission for help.
How will it impact my business? What can I do?
When this was first introduced in non-small business in 2024, there was initially concern for how it would play out. As it turns out, it really didn’t amount to much.
Workplaces discussed the impact and established what was reasonable contact in their situation. Most contact made was reasonable or employers chose to wait until the next business day to work through the issue.
If there are often occurrences where contact is made with employees outside of their ordinary hours of work, this may present an opportunity to review how essential this is and if there are other ways of communicating in a manner that aligns with reasonable expectations at your workplace.
The key here is understanding and being clear on these expectations. What is considered reasonable at your workplace. Start the conversation with your team about this topic. Get a sense of what situations may come up and how you will deal with the scenarios in your business.
A best practice approach is to document and agree on the expectations, making it a good time to revisit and review your position descriptions, contracts and policies to ensure expectations are clear.
- Employee choice pathway
What is it?
The ‘employee choice pathway’ will be introduced through the National Employment Standards for eligible Casual employees who wish to change to full-time or part-time (permanent) employment if they want to, for all Small Businesses from 26 August 2025.
The ‘employee choice pathway’ allows eligible casuals who choose to, to notify their employer in writing of their intention to change to permanent employment. An employer can only refuse the notice for certain reasons.
There are certain conditions that have to be met for an existing casual employee to choose to notify their employer of their intended change. That includes – if they have been employed for at least 6 months (or 12 months for small business) and that they believe they are no longer meeting the definition of a casual employee.
It’s important to note that some casual employees work a regular pattern of hours, this doesn’t necessarily mean they are permanent.
How will it impact my business? What can I do?
If you or your business employ workers on a casual basis, it’s definitely time to take a look at your arrangements with them. Every business situation is different, so it’s important to factor in individual employee circumstances and their pattern of work.
The Fair Work Ombudsman details some key definitions and arrangements that provide further information.
We can help by assisting you with unpacking the implications for your business. This may include understanding your exposure to the ‘employee choice pathway’ and what are the options for your business and your employees.
It presents a great opportunity to look at Employment Contracts and Position Descriptions to ensure you are meeting all of your employer obligations that relate to the employee choice pathway and the many other obligations that come along with employing workers.
Irrespective of whether a move to permanent employment is on the horizon, this Casual Employment Information Statement must be provided to all casual employees upon their engagement and again after they have undertaken work with you for 6 months (or 12 months for small businesses).
- Psychological Health Regulations
What is it?
From December 2025 the new Occupational Health and Safety (Psychological Health) Regulations will put psychosocial hazards on the same footing as physical hazards and are expected to make a meaningful difference to safety and wellbeing outcomes across thousands of Victorian workplaces. Psychosocial hazards are work-related factors with potential to cause harm, such as bullying, sexual harassment, aggression or violence and exposure to traumatic events.
The new regulations will focus on risk management and create specific obligations for Victorian employers to identify and control psychosocial hazards in their workplaces.
It is anticipated that a supporting compliance code will also be available to provide employers with practical guidance on how to meet their duties under the new regulations.
It’s anticipated the regulations will be made available in October and take effect on 1 December this year. They will align with similar regulations introduced in other Australian states and territories.
How will it impact my business? What can I do?
From 1 December 2025 employers will need to have Psychosocial Health of their workers very much front of mind. Very similar to your current approaches to physical health, you will have obligations to your employees.
Dependent on your industry and nature of your work, the awareness of Psychosocial Health at your workplace may be a new, or well covered topic, irrespective, there will be requirements that all employers will need to be aware of, and this may change the way you structure, conduct, engage, interact, train and communicate with your workers.
With 2 months until the anticipated regulations are to be released, now is the time to take stock and reflect on the opportunities that are presented.
Some proactive work may include considering the following resources:
- WorkWell | WorkSafe Victoria
- Respect at Work – Fair Work Ombudsman,
- Respect@Work | Australian Human Rights Commission
- Understanding the benefits of an Employee Assistance Program (EAP)
Inspire HQ will continue to share information and resources about regulations and requirements as more information becomes available.
