Three Fair Work Changes Your Business Can’t Ignore in 2025
There have been three major updates to Australian workplace laws in 2025 that every small business owner should be across - two under Fair Work legislation and one under superannuation law via the ATO.
These changes affect how you engage employees and contractors, manage after-hours communication, and respond to casual conversion requests.
1: The Right to Disconnect Now Applies to Small Business (from 26 August 2025)
Employees now have the legal right to ignore unreasonable work contact outside scheduled hours -including calls, texts, and emails - even in businesses with fewer than 15 staff.
This isn’t a ban on all after-hours contact.
It simply means employees can’t be penalised for not responding unless the contact is reasonable - think emergencies, senior roles with after-hours expectations, or situations where an employee is paid an on-call allowance or their salary includes after-hours availability.
Steps to take:
Review and update employment contracts and position descriptions.
Define what constitutes “reasonable” after-hours contact in your business.
Start open conversations with your team or implement a simple policy outlining expectations around out-of-hours contact.
2. Casuals Can Now Request to Go Permanent
Under the new Employee Choice Pathway, eligible casuals can now formally request conversion to permanent roles if they’ve been engaged in regular and systematic employment—for example, working the same shifts or hours week to week.
This applies to:
Casuals employed for 12+ months in small businesses (15 or fewer employees), or 6+ months in larger businesses.
Casuals who believe they no longer meet the definition of a casual (i.e., there’s an ongoing pattern of work and no casual loading).
Employers must respond in writing within 21 days, and if refusing the request, must clearly explain the reasonable business grounds for doing so.
Steps to take:
Audit your current casual workforce.
Set up a process to assess and respond to conversion requests.
Keep communication open - ensure casuals understand their rights, and you understand your obligations.
3. Yes, You Might Owe Your Contractors Super (ATO Update)
Still think paying a contractor with an ABN means you’re off the hook for super? Not necessarily.
If you're paying sole traders mainly for their labour and skills, and they can’t delegate the work, then under ATO rules, you may be legally required to pay them super, even if they invoice you.
This is one of the most common and costly traps we see. The old 80% rule? No longer relevant. And it doesn’t matter if your contract excludes super.
Even a sole trader admin assistant working five hours a week could qualify - if they’re paid hourly, doing the work themselves, and can't subcontract.
Steps to take:
Review contractor agreements - especially for roles like admin, marketing, or tutoring.
Use the ATO’s contractor vs employee test.
If your contractor arrangements haven’t been reviewed by an expert, now’s the time.
What Next?
These changes are here to stay - and non-compliance can be expensive. If you’re unsure how any of the updates apply to your business:
Take the steps above
And seek expert help
A quick check-in with an HR Consultant or your Accountant could save you thousands (and a fair bit of stress) down the track.
Article provided by Sally Dillon – Director and Chief HR Officer at Revolution Consulting Group