Small business owners now face a raft of new workplace laws in 2025 – including the right for staff to ignore work calls after hours, criminal penalties for wage theft, and a rise in compulsory superannuation contributions.
The most immediate change is the Right to Disconnect, which took effect for small businesses on Tuesday. The law gives employees the ability to refuse phone calls, emails and messages outside their contracted hours unless the contact is deemed reasonable.
The measure, already in place for larger employers since August 2024, is designed to draw a clear line between work and personal time. It follows growing concerns over workplace culture, including a Queensland case in which a former teacher is seeking nearly $800,000 in damages for out-of-hours contact.
A Legal Risk for Employers
Employment law experts warn that businesses that fail to comply could face serious consequences. Lyndon Burke, founding partner of Burke Mangan Lawyers, said the risks were not just financial but reputational.
“Cases like the Cairns matter show this isn’t just symbolic. Employers who ignore the new rules could be exposed to damages claims, fines, and even allegations of breaching awards,” Burke said.
He added that the law applies equally to small operators and large corporations.
“It doesn’t matter if you employ five people or 5,000 – the obligations are the same.”
Beyond Disconnect: Other 2025 Law Changes
The Right to Disconnect is one of several significant employment law reforms to start this year. Others include:
- Wage Theft Criminalised (1 January 2025): Employers who deliberately underpay staff now face potential jail terms and fines in the millions. Even payroll errors may attract scrutiny.
- Superannuation Increase (1 July 2025): The superannuation guarantee has risen from 11.5% to 12%, affecting cashflow for businesses of all sizes.
- Award Classification Updates (1 January 2025): Modern award changes have introduced new pay scales and entry-level classifications across multiple industries, raising the risk of misclassification.
What Small Businesses Should Do Now
For small business owners already stretched thin, adapting to the new rules may be a challenge. But legal specialists say a few proactive steps can make the difference between compliance and costly disputes.
Recommended actions include:
- Reviewing workplace contracts and policies around after-hours contact.
- Auditing payroll and timekeeping systems to ensure accuracy.
- Updating budgets to prepare for higher super contributions.
- Training managers and supervisors on the new requirements.
- Seeking legal advice early if unsure.
Burke said the broader message for small business was clear:
“The era of informal HR is over. A small investment in compliance now can prevent major problems down the track.”
Local Impact
While the reforms are national, they carry particular weight for small employers on the Mornington Peninsula and Frankston, where many businesses operate with limited HR support. For these operators, understanding and acting on the changes could mean the difference between stability and exposure to fines.
