The outcome of the 2025 Australian federal election will significantly influence business owners, particularly concerning employment laws and the Fair Work Act. Both major parties have proposed policies that could impact workplace relations, employee entitlements, and employer obligations
Key Considerations for Business Owners
1. Penalty Rates and Employee Entitlements
The Labor government has pledged to legally safeguard penalty rates if re-elected, aiming to protect workers’ rights. This move is in response to proposals by employer groups seeking to reduce penalty rates and allowances in exchange for pay raises. Labor emphasises that such protections are vital for approximately three million Australians on modern awards, overseen by the Fair Work Commission.
2. Workplace Flexibility and Remote Work
Work-from-home policies have become a focal point in the election discourse. The Coalition initially proposed mandating a full-time return to the office for public servants but later abandoned the policy following public backlash and internal concerns. Labor criticised the Coalition’s initial stance and has highlighted its commitment to flexible work arrangements.
3. Recent Amendments to the Fair Work Act
Recent legislative changes under the “Closing Loopholes” reforms have introduced significant updates to the Fair Work Act, including:
- Empowering the Fair Work Commission to handle disputes related to the right to disconnect.
- Changing the definition of casual employment and pathways to permanent employment.
- Enhancing protections against sham contracting and unfair contract terms for independent contractors
4. Definition of Small Business
There is a growing push to change the Fair Work Act’s definition of a small business, with arguments that the current definition is too constricting. Adjusting this definition could alter the obligations and entitlements applicable to small business employers.
Preparing for Potential Changes
Business owners should stay informed about the election outcomes and be prepared to adapt to potential changes in employment laws. Engaging with legal and industrial relations experts can provide guidance on compliance and strategic planning. ForgeHR will continue monitoring updates from the Fair Work Ombudsman and the Fair Work Commission providing you advice on how to navigate the evolving regulatory landscape.
