First published on Thursday, January 2, 2025
Last updated on Thursday, January 2, 2025
2024 was a busy year for business owners, especially within the world of HR. From competition for skilled workers increasing to an added focus on mental health and employee wellbeing in the workplace these issues mean employers have to learn to adopt new strategies to continue thriving in a constantly changing work environment.
With so many changes, employers understandably have questions about what might be on the horizon for 2025. The landscape will face its share of challenges and changes, including:
- A continuation of the cost-of-living crisis
- Increased technological advancements
- The introduction of several employment legislations
So how can business owners address the challenges head on? Here’s what we think…
The cost-of-living crisis continues…
As the financial strain continues to affect households, your staff’s morale and wellbeing will be affected more than you might think. That’s why it’s important to put measures in place to help balance out the negative effects of the cost-of-living crisis in the workplace.
For example, consider the financial implications on your staff if you’re planning on enforcing new policies such as a strict return-to-work policy.
Also, consider looking into providing access to an Employee Assistance Programme to give your team someone to talk to when they need it most.
Other benefits you could consider offering include:
- Discounted employee benefits (like those found on Bright Exchange)
- Free food and drink
- Free upskilling opportunities
- Pay increases (if you can afford it)
These measures can help boost retention and engagement, which is cheaper than constantly rehiring and training.
The rise of technology and AI
Lots of new technologies are emerging, leading many workers to worry about losing their jobs. This is especially true of AI.
Start by offering upskilling opportunities where you can, educating your staff on any new systems, technologies, or use-cases for AI. This way, you’ll provide the tools for success, while reassuring your staff of their future in your organization.
Big legislation changes
As we move into 2025, Australian employers face several significant legislative changes that will impact the way businesses operate. These updates are designed to improve workplace fairness, employee well-being, and compliance.
Below, we’ve broken down the key changes to help you stay ahead and ensure your business is prepared.
1. The Right to Disconnect
What’s changing? From August 26, 2025, small businesses in Australia must comply with new “right to disconnect” laws. These laws protect eligible employees from being contacted outside their regular working hours, promoting better work-life balance and mental health.
Why is it important? This legislation aims to boost employee well-being and productivity, ensuring staff can fully disconnect from work during personal time.
How to prepare: • Update your HR policies to align with the new rules. • Ensure exceptions, such as on-call employees or emergencies, are clearly outlined. • Communicate these changes to your team and train managers to respect boundaries.
2. Paid Parental Leave Expansion
What’s changing? Starting July 1, 2025, the Paid Parental Leave (PPL) scheme will expand. Notably, from July 2026, the government will pay 12% superannuation on PPL, and additional leave days will become available for partners and shared parental leave.
Why is it important? These changes support working parents and promote gender equality in caregiving. For employers, staying compliant will also help foster a supportive workplace culture.
How to prepare: • Review your policies on parental leave. • Update payroll systems to incorporate superannuation payments by 2026. • Communicate these updates to employees so they’re aware of their new entitlements.
3. Superannuation Changes
What’s changing? From July 1, 2025, super contributions will rise from 11.5% to 12%. Additionally, by July 1, 2026, the “Payday Super” rule will require super to be paid with every pay cycle instead of quarterly.
Why is it important? These changes aim to improve retirement savings for employees while streamlining super payments.
How to prepare: • Adjust payroll systems to handle higher contribution rates. • Start planning for payday super compliance well ahead of 2026.
4. National Minimum Wage Adjustments
What’s changing? As of January or April 2025, entry-level classifications under certain awards (e.g., “C14” or “introductory”) will have a maximum duration of 12 months. After this period, employees must transition to standard pay rates.
Why is it important? This change ensures fair pay progression for entry-level employees.
How to prepare: • Review how long employees have been in introductory classifications. • Plan for pay increases for those nearing the 12-month limit.
5. Casual Conversion to Permanent Roles
What’s changing? Employers (excluding small businesses) must offer casual employees permanent positions within 21 days of their 12-month anniversary if they: • Were employed as casuals before August 26, 2024. • Worked regular hours for at least six months. • Can maintain these hours as full-time or part-time.
This requirement remains in effect until February 26, 2025.
Why is it important? This legislation supports job security for casual employees while maintaining compliance with award requirements.
How to prepare: • Identify eligible casual employees. • Offer conversions where applicable and document compliance.
Next Steps for Employers The 2025 legislative updates present an opportunity for businesses to refine their HR policies and strengthen compliance practices. Take the time now to: • Review and update employment contracts, payroll systems, and HR policies. • Communicate upcoming changes to your team to maintain transparency. • Seek professional advice to ensure your business remains compliant with new laws.
By acting early, you can not only avoid penalties but also foster a workplace that values employee rights and well-being. For more expert guidance on navigating workplace legislation, visit BrightHR.
Culture is king
Company culture remains a huge priority for employees. It dictates everything from how your team interacts with each other to the values, beliefs, and attitudes you uphold in your organization.
For millennials and Gen Z employees in particular culture is a top priority when choosing the type of employer they want to work for. Looking ahead, your business needs to find genuine ways to showcase your culture to attract the best talent.
How BrightHR supports your business
There’s a lot for your business to contend with in 2025. But don’t worry, BrightHR has got your back.
Book a demo with one of our friendly experts to discover how our expert document templates, and streamlined HR software can support your business in 2025.
