Australian employers are facing a growing number of workplace law obligations, with changes affecting payroll, employment contracts, flexible work, parental leave, employee conduct and the management of workplace complaints. While individual reforms may appear manageable, the combined effect is increasing the level of risk attached to everyday employment decisions.
For employers, compliance is no longer simply about having the right policies stored in a shared folder. Organisations must ensure their contracts, systems and processes reflect current legal requirements, while also giving managers the practical knowledge to apply them consistently. When a workplace issue escalates, the quality of the employer’s process and documentation can significantly influence the outcome.
The challenge is particularly important as businesses respond to cost pressures, technological change and evolving employee expectations. Restructures, outsourcing, artificial intelligence and changing working arrangements are creating new operational opportunities, but they can also expose organisations to claims when decisions are rushed or poorly documented.
“Your process will make or break employers. Having a policy is not enough if the people managing employees do not understand why it exists or how to follow it.”
On a recent Australian Market Update, Specialist Recruitment Manager Leanne Lazarus was joined by Jonathan Mamaril, Director and Head of Employment Law at South Geldard Lawyers, to discuss the key legislative changes and workplace risks employers should have on their radar.
Redundancy and organisational restructuring remain significant areas of concern, particularly as employers explore outsourcing, offshoring and technology-driven efficiencies. A restructure may be commercially necessary, but employers still need to follow a defensible process.
This includes properly considering redeployment opportunities, consulting affected employees where required and documenting the business reasons behind the change. Employers should avoid treating the outcome as predetermined before consultation begins. A process that appears rushed or artificial may increase the likelihood of unfair dismissal or general protections claims.
Employers also need to consider the wider impact of organisational change. When restructures are connected to cash flow pressure, payroll changes or technology implementation, employment law advice should be sought early rather than after decisions have already been announced.
Payroll errors remain a serious risk, particularly for employers operating under complex modern awards, enterprise agreements or individual flexibility arrangements. Businesses with employees across different locations, classifications and working arrangements are especially vulnerable to underpayments.
Payroll software can support compliance, but employers remain responsible for the accuracy of employee payments. Systems should be tested, records must be detailed and complex arrangements should be manually reviewed.
Employment contracts should also be checked to ensure salary and offset clauses are legally effective. Recent decisions involving annualised salary arrangements have reinforced the importance of assessing whether employees have received their correct entitlements during each pay period.
Employers should consider involving both payroll specialists and employment lawyers when reviewing payment practices. Legal advice may also provide important protections when potential compliance issues are being investigated.
Many employment claims begin with a difficult conversation that was delayed, avoided or handled poorly. Performance concerns, misconduct, workplace complaints and medical issues all require managers to follow a fair and consistent process.
Policies covering bullying, sexual harassment, psychosocial hazards and employee grievances are only effective when leaders understand how to apply them. Training should explain the practical steps managers need to take, including when to document a discussion, when to escalate an issue and how to give an employee an opportunity to respond.
Scenario-based training can be particularly valuable. Reviewing real examples helps managers understand how a failure to follow procedure can create financial, personal and reputational consequences.
Changes to government-funded paid parental leave may not directly increase employer-funded leave costs, but they still affect workforce planning, return-to-work arrangements and internal policies.
Employers should review their parental leave documentation and ensure managers understand how government entitlements interact with company benefits. They should also be alert to discriminatory attitudes or comments about employees taking parental leave.
Even informal remarks can contribute to a complaint or general protections claim. Leaders must understand that personal opinions about parental leave should never influence employment decisions, career opportunities or the treatment of employees.
Employers should avoid blanket rules when responding to flexible work requests. General statements about workplace culture, mentoring or collaboration may not be sufficient grounds to reject an eligible employee’s request.
A defensible process involves considering the employee’s individual circumstances, reviewing the operational requirements of the role and identifying evidence that supports the employer’s decision. Relevant factors may include performance data, customer requirements, staffing needs and duties that must be completed in person.
Employment contracts and position descriptions should clearly explain where and how work is expected to be performed. However, employers must still follow the correct process and provide a written response within the required timeframe.
The right to disconnect gives employees a default right to refuse unreasonable work-related contact outside their working hours. However, what is reasonable will depend on the employee’s role, seniority, pay, responsibilities and the nature of the contact.
Employers should define expectations clearly rather than relying on assumptions. One practical approach is to create different communication priorities. A phone call may indicate an urgent issue, a text message may require a response when reasonably available, and an email may be addressed during the next working period.
Agreed flexible arrangements should also be recorded in writing. For example, an employee may be unavailable during certain family hours but return online later in the evening. Documenting the arrangement provides clarity for both the manager and the employee.
What should employers do in the next 90 days?
• Review employment contracts, particularly annualised salary, offset and individual flexibility clauses.
• Update policies covering grievances, bullying, sexual harassment, psychosocial hazards, medical conditions and workplace conduct.
• Audit payroll records and manually review employees covered by complex awards, agreements or working arrangements.
• Train managers to handle performance concerns, workplace complaints and difficult conversations consistently.
• Review flexible work and right-to-disconnect procedures, including how requests and decisions are documented.
• Ensure parental leave policies and workforce planning processes reflect current government entitlements.
