Important changes for small business employers from 26 August 2025

From 26 August, important workplace law changes now apply to small business employers (those with fewer than 15 employees).

While all employers have obligations under the Fair Work Act 2009 (Cth) (Fair Work Act), small businesses are sometimes given extra time to prepare for new requirements. That “grace period” has now ended for two key areas:

 

1. The right to disconnect

Employees now have a legally protected right to disconnect outside of working hours. This means they can lawfully refuse to monitor, read, or respond to calls, emails, or messages after hours, unless refusing would be unreasonable in the circumstances.

What does “unreasonable” mean?

If an employee is on-call or receives an allowance for after-hours work, they may still be expected to respond.
If there is a genuine emergency or business-critical issue, contact outside hours may be reasonable.
But generally, day-to-day communications should wait until the next shift.

This right has been in place for larger employers for a year, but as of 26 August, small businesses must also comply

Learn more from the Fair Work Ombudsman – Right to Disconnect

Read more in the Employment Law Handbook – Right to Disconnect bulletin

 

2. Casual conversion

Small business employees now have stronger rights to request conversion from casual to permanent employment.
Under the new employee choice pathway, a casual employee can request conversion to full-time or part-time employment if:

• They have worked for at least 12 months in a small business (6 months in a larger business), and
• They no longer meet the Fair Work Act’s definition of a “casual employee” (for example, they now have a regular, ongoing pattern of work).

Employers must respond to these requests and cannot refuse without a valid business reason under the Fair Work Act. Failure to handle requests properly can expose small businesses to disputes or penalties.

Learn more from the Fair Work Ombudsman – Casual Conversion

Read more in the Employment Law Handbook – Casual Employment chapter

 

3.Staying on top of constant changes

These changes are just the latest in a steady stream of updates to workplace law. For small businesses, it can feel overwhelming to track all the rules while also running a business.
That’s where resources like the Employment Law Handbook come in. It’s a simple, low-cost subscription service that provides:

• Practical guides and templates
• Expert commentary on new laws
• Step-by-step advice for handling employee issues

Explore the Employment Law Handbook here

 

What to do now.

1. Review your policies on after-hours contact.
2. Prepare a process to assess casual conversion requests fairly and on time.
3. Talk to LINK about simplifying payroll and compliance.
4. Subscribe to the TANDA Employment Law Handbook to stay ahead of changes.