As the 2024–25 financial year has now come to an end, it’s timely to share some important developments in employment law and workplace investigations, based on recent court decisions, our work with clients and impending or anticipated changes to workplace laws.
You can download our detailed update here, which includes relevant takeaways and practical recommendations employers should consider to stay compliant and reduce legal risks, in the new financial year.
We have set out a quick snapshot of our update below:
Bonus Payments
Two ex-employees have successfully challenged in the Federal Court the withholding of their ‘earned’ bonuses by their employer after they resigned.
Bonus arrangements need to be carefully drafted, so that an employee’s entitlement to a bonus does not arise until the relevant point in time.
Incorporating Policies into Employment Contracts
The High Court’s decision in Elisha v Vision Australia illustrates that there can be significant consequences for employers who create binding obligations on themselves by incorporating their policies into employment contracts.
Employers need to carefully assess the legal risks of choosing to incorporate or not incorporate their policies into employment contracts.
Termination Payments
Courts are strictly enforcing employer breaches of late termination payments of statutory entitlements, such as payment in lieu of notice of and accrued but untaken annual leave, even for relatively minor delays.
Employers need to ensure that they are able to process termination payments on an employee’s last day of employment, to avoid this potential legal exposure.
Wage Theft Laws & Payroll Compliance
Wage theft laws are now in place, meaning intentional underpayments by employers may result in criminal charges and significant penalties.
Employers need to act promptly and obtain legal advice as necessary, to resolve any known issues resulting in non-compliance.
The Fair Work Ombudsman’s new Payroll Remediation Guide provides a handy guide of its ‘best-practice’ expectations in relation to payroll remediation.
Non-Compete Clauses
Expected legislation will ban non-compete clauses for employees below the high-income threshold from 2027.
If non-compete clauses are an important protection tool for your organisation, it is now important to explore alternative safeguards to protect legitimate business interests of an employer and its confidential information.
AI in the Workplace
AI tools can raise WHS, discrimination, and confidentiality risks in the workplace.
Employers should proactively develop strategies to manage AI-related risks, such as by creating an AI usage policy, assessing the psychosocial risks of implementing AI tools in the workplace, and training managers as to how to appropriately use AI tools for employment-related decisions.
Flexible Work & WHS Obligations
There is a continuing demand for hybrid work and flexible work arrangements.
However, employers must ensure that they do not overlook their WHS obligations when considering hybrid work arrangements.
If flexible work arrangement requests are refused, employers need to provide defensible, detailed and clearly communicated written reasons to the employee.
Payday Superannuation
Expected legislation from July 2026 will require employers to pay super at the same time as wages. Now is the time to start reviewing payroll systems to ensure real-time compliance.
Psychosocial Hazards: New Regulations in Victoria
Victoria is expected to introduce new psychosocial hazards regulations to come into effect by 1 December 2025. If passed, employers will have clearer guidance on how to identify and control risks to protect workers from psychological hazards like bullying and harassment.
Employers subject to the OHS Regulations in Victoria can begin preparing for the proposed amendments now by reviewing their WHS policies and procedures to ensure that they are equipped for these changes.
Workplace Investigations
The demand for workplace investigations is rising.
Poorly handled workplace investigations can result in reputational impact and/or legal exposure for employers. This has been highlighted by a few internal workplace investigations that have recently come under scrutiny by the Fair Work Commission.
To mitigate these risks, employers must ensure their internal teams are properly trained in investigative procedures and recognise when complex, high-risk, or sensitive matters warrant the engagement of external specialists.
Need help navigating these changes? Contact the expert team at Workdynamic Australia for tailored advice and support.
Sydney & Melbourne
02 8521 6486 | 03 9642 8324
Disclaimer: The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. The information in this article does not constitute legal advice and should not be relied upon as such. You should obtain specific advice relevant to your circumstances.