Australia Employment Law Guide

What’s New in 2025

• Wage theft criminalised
• National minimum wage and award minimum wage increases
• Employee choice pathway for casuals
• Right to disconnect for small business employees
• Increased Parental Leave Pay entitlement 

Glossary: Australia’s Employment Law System

Fair Work Act 2009

The key law governing employer–employee relations in Australia alongside the Fair Work Regulations 2009. 

Fair Work Commission

The independent national workplace relations tribunal responsible for setting the National Minimum Wage, creating and updating awards, approving enterprise agreements, regulating unions, and resolving workplace disputes. 

Fair Work Ombudsman

An independent national government organisation that regulates workplace relations. Its responsibilities include sharing information, advising employers and employees about work conditions in Australia, and monitoring compliance with workplace laws. 

National Employment Standards (NES)

Minimum employment standards that employers must provide to employees, which address issues such as maximum weekly hours, flexible working arrangements, types of leave, superannuation, termination, and redundancy pay. Whether these standards apply depends on the employee’s specific circumstances. 

Modern awards

Employment conditions for various industries and occupations, including the minimum wage, allowances, and weekend, holiday, and overtime pay. They’re created by the Fair Work Commission. 

Registered agreements

Formal agreements between employers and employees regarding work conditions that the Fair Work Commission has approved. Enterprise agreements are a common type of registered agreement that apply to a group of employees or a specific business.

General Overview of the National Workplace Relations System

Employment law for private sector employers is primarily governed by federal law, specifically the Fair Work Act and the NES. 

The NES set out the minimum standards of employment. Awards, registered agreements, or employment contracts may address the same issues—but can’t provide anything less than the NES minimum standards. 

This article mainly focuses on federal employment laws. Employment laws in your state or territory may give employees greater protections or entitlements—so you must look into these. 

Pay and Wage Rules

As of 1 January 2025, intentional wage underpayments (i.e., wage theft) can be punishable by imprisonment. 

National Minimum Wage (NES)

The national minimum wage, currently $24.10/hour or $915.90/week, applies if an award or registered agreement doesn’t cover an employer. 

This minimum wage is revised annually on 1 July by the Fair Work Commission. 

Award Wages

Most minimum wages in Australia are fixed by awards and adjusted yearly on 1 July. 

Here are some examples of current minimum wages under industry-specific awards:

Employers and employees can use the Fair Work Ombudsman’s Pay and Conditions Tool to find the relevant award and pay rates. 

You can find and access awards on the Fair Work Commission’s website. 

Registered Agreements

The working conditions of some employees, including their minimum wages, are set by registered agreements. 

For example, Anglicare, an aged care service provider, has its own enterprise agreement setting out the minimum wages for its employees. 

You can find registered agreements on the Fair Work Commission’s website. 

Other Minimum Wages

There may also be different minimum wages for:

• Apprentices and trainees with formal training contracts.
• Employees under 21.
• Employees with disabilities under the Supported Wage System.

These depend on whether the employment relationship is covered by an award or registered agreement. 

Penalty Rates

Awards and registered agreements also set penalty rates: different rates of pay employees receive for working weekends, public holidays, late-night or early-morning shifts, and overtime. 

Employers and employees can agree on different penalty rates, as long as the employee still receives at least the minimum entitlements set out in the relevant award or agreement. 

For example:

Allowances

Awards and registered agreements also cover allowances. These are additional payments employees receive for industry-related expenses or conditions, such as:

• Uniforms or laundry. 
• Travel.
• Transport, including petrol and motor vehicle costs.
• Tools.
• Safety equipment or apparel.
• Meals.
• Training fees.
• Textbooks.
• Broken shifts.
• Supervisory roles.
• Working in difficult or dangerous environments.

The allowances under each award or agreement are tailored to the relevant industry or role. As an example, here are some allowances for employees under the Aged Care Award:

Working Hours and Rest Breaks

Standard Hours

Under the NES, the maximum hours employees can work each week are:

• Full-time employees: 38 hours (unless there’s a relevant award or registered agreement that says otherwise).
• Employees other than full-time: 38 hours or their agreed ordinary weekly hours of work (whichever is less).

Employers can ask or require employees to work additional hours, as long as they’re reasonable. Whether the additional hours are reasonable depends on various factors such as:

• Risk to the employee’s health or safety.
• The amount of notice the employer gives.
• The employee’s personal situation, including family commitments.
• The industry’s usual patterns of work.

Averaging arrangements

Under an averaging arrangement, employees can average their hours over more than a week. Averaging agreements can exceed the standard 38 hours/employee’s agreed ordinary working hours only if the additional hours are reasonable. 

Averaging arrangements may be set out under an award, registered agreement, or employee-employer agreement. 

Employees not covered by an award or agreement can enter into an averaging agreement, but the averaging period is capped at 26 weeks. 

Averaging agreements are voluntary. Employers can’t require workers to enter into one. 

An example of an averaging agreement can be found on page 2 of the Fair Work Ombudsman’s Maximum Weekly Hours Fact Sheet. 

Ordinary hours

Awards and registered agreements also often set out the ordinary work hours for covered employees. These include minimum and maximum hours and the spread of hours—i.e. the times of the day that employees can work their ordinary hours (e.g. 6am to 6pm). 

Ordinary hours vary between industries, roles, and types of employees (full-time, part-time, or casual). 

Overtime Rules

Overtime rates generally apply to any work an employee does outside of their:

• Maximum daily, weekly, or monthly hours.
• Agreed number of hours (part-time employees only).
• Spread of hours.

These are detailed in the relevant award, registered agreement, or employment contract. For example, under the Aged Care Award, overtime for full-time employees is any hours worked ‘in addition to their rostered ordinary hours on any day’. 

Employers must pay employees at the relevant overtime rates for these hours, which are also set out in the award. 

Rostering and Breaks

Meal and rest breaks

Employers should check the relevant award or registered agreement for their obligations regarding rest and meal breaks. These documents usually detail how long breaks must be, when they can be taken, and whether they’re paid. 

Awards and registered agreements also detail any mandatory rest breaks employers must give employees between shifts. 

Rostering laws

Employers must discuss the issue with the employee before changing regular rosters or ordinary work hours. 

Awards and registered agreements typically set out rostering requirements for the relevant industry or role, including advance notice and paid or unpaid rostered days off. 

Certain employees also have the right to request flexible working arrangements. 

Leave Laws

Annual Leave

Under the NES, all Australian employees—except casual workers—are entitled to paid annual leave. Employees can use this leave for any purpose they want. 

The annual leave entitlements are:

• 4 weeks for full-time and part-time employees.
• 5 weeks for shift workers.

Employees: 

• May receive more annual leave under their relevant award or registered agreement. 
• Are paid at their regular base pay rate when taking annual leave. 
• Start accruing leave from day 1 of their employment. Any unused leave carries over into the following year, and employers must pay employees for any accrued paid leave when they leave. 

Annual leave continues to accrue when a worker is on paid leave, community service leave, or long service leave. 

Employers can sometimes require employees to take annual leave—for example, over planned Christmas/New Year closures or when the employee has too much leave. Employers should refer to the relevant award or agreement for guidance on this. 

Leave loading

Leave or holiday loading is additional pay an employee receives while on annual leave. It’s designed to compensate employees for the costs of being on leave and payments they might miss out on, such as penalty rates. 

The relevant award or registered agreement identifies whether an employee is entitled to leave loading and the applicable rate (the standard leave loading rate is 17.5%).  

When employees leave the company and are paid out their earned annual leave, leave loading also applies. 

Sick, Carer’s, or Personal Leave

Paid sick and carer’s leave

Full-time employees can access up to 10 days of paid sick and carer’s leave each year. Part-time employees are also entitled to it on a pro-rated basis. 

Employees can use sick leave if they can’t work due to an injury or illness. Carer’s leave is for looking after a family or household member who’s ill, injured, or involved in an emergency. 

Paid sick and carer’s leave accumulates from the first day an employee starts work. It continues to accrue during paid, community service, and long service leave. Any unused paid sick and carer’s leave rolls over into the following year. 

Unpaid carer’s leave

All employees, including casual employees, are entitled to 2 days of unpaid carer’s leave a year. Full- and part-time employees can use this leave only if they’ve exhausted their paid sick and carer’s leave. 

Employers can ask for documents to support a request for sick or carer’s leave. 

Compassionate and Bereavement Leave

2 days of compassionate leave are available to employees in the following situations:

• An immediate family or household member passes away or faces a life-threatening illness or injury.
• A child that would’ve been a part of the employee’s immediate family or household is stillborn. 
• They or their spouse experiences a miscarriage.

Employers must pay full- and part-time employees, but not casual employees, for this leave. They can also request supporting documentation for these leave requests. 

Family and Domestic Violence Leave

Regardless of the nature of their employment, all Australian employees are entitled to 10 days of paid domestic and family leave each year. Employers must treat requests for this leave confidentially. 

Employees can access the full balance of this leave from day 1 of their employment. However, they can’t carry over unused balances into the next year. 

This leave is available when an employee experiences domestic violence and needs to do something to deal with its impact which they can’t do outside of work hours. 

Parental Leave

Employees are entitled to up to 12 months of unpaid parental leave for the birth or adoption of a child. However, they can request to extend this for another 12 months (24 total). 

To be eligible for parental leave, employees:

• Must be or will be responsible for the child’s care.
• Must have worked for the employer for at least 12 months prior to the due date, adoption date, or leave start date.

Additional eligibility criteria apply for casual employees. They must have worked for the employer ‘on a regular and systemic basis’ for at least 1 year and could reasonably be expected to continue doing so, if not for the pregnancy or adoption. 

Employees can use their parental leave all at once (continuous) or at different times during their parental leave period (flexible). 

There are different rules around when parents can access this leave, depending on the type of parental leave they take—continuous or flexible—and their role as the pregnant person, spouse or de facto partner, or adoptive parent. 

Employers can also direct employees when to start parental leave during the 6 weeks before the birth in specific circumstances. 

Employees must notify employers in writing at least 10 weeks before their parental leave (or otherwise as soon as possible). This notice should detail the amount, type, and dates of the intended parental leave. 

Employees also need to confirm the details of their parental leave with their employer at least 4 weeks before it starts. They also must provide 4 weeks’ notice of the specific days they intend to take flexible parental leave. 

Adoptive parents are also entitled to 2 days of unpaid pre-adoption leave. Employers can require employees to use other leave, like annual leave, for this purpose. 

Employers can also request supporting documentation for parental and pre-adoption leave. 

Unpaid special parental leave

Employees needing time off during their pregnancy can use flexible unpaid parental leave, sick leave, compassionate leave, or special parental leave.

Unpaid special parental leave is available to pregnant employees who can’t work due to a pregnancy-related illness or a pregnancy loss after 12 weeks that isn’t defined as stillborn. 

Eligible employees can use this leave until the end of their pregnancy or until they can return to work—whichever is sooner. 

Employers may require supporting documentation for this leave. 

Parental Leave Pay

While parental leave is unpaid, employees may be eligible for some government support during this time.

To be eligible for Parental Leave Pay (PLP), employees must meet specific criteria, including an income and work test. 

PLP is the equivalent of the national minimum wage. For children born or adopted after 1 July 2024, parents are entitled to up to 110 days of PLP based on a 5-day workweek. From 1 July 2025, this increases to 120 days. 

Services Australia has more information about PLP. 

Community Service Leave

Community service leave covers situations where employees need leave for a voluntary emergency management activity or to sit on a jury. 

Leave for a voluntary emergency management activity is unpaid. 

The first 10 days of jury service leave are paid, but only for full- and part-time employees. Employers must pay employees their base rate, minus any jury service pay the employee receives. 

Employees must notify employers of this type of leave as soon as possible, including the length. Employers can also request supporting evidence. 

Long Service Leave

Long-service leave is paid leave that employees receive after working for the same employer for a certain length of time. 

Long-service leave is generally covered by state and territory laws, although government workers, construction workers, and workers covered by a federal award are treated separately. 

Here’s an overview of long-service leave entitlements for private employees by state. 

*Note: This is a brief summary. Long-service leave laws are detailed and include eligibility criteria and other accrual rates. 

Other types of long service leave

Some employees are covered by federal pre-modern awards (i.e., created before 1 January 2010) with long-service leave entitlements.

Some states and territories also have portable long service leave laws. These apply to specific industries, including building, construction, and contract cleaning, and allow employees to accrue long-service leave while working on different projects for various employers. 

Public Holidays

Employees have the right not to work on public holidays. However, employers can ask employees to work public holidays if the request is reasonable. 

For non-casual employees, if the public holiday falls on a day the employee usually works and they take the day off, employers must pay them their base pay for the hours they would’ve worked that day. 

Employment Types

Casual Employment

Casual employees have ‘no firm advance commitment to ongoing employment’ and receive a specific pay rate under an award, registered agreement, or employment contract. 

This differs from full- and part-time employees who typically have set work hours and an expectation of ongoing work. 

Casual loading

Casual employees receive an extra 25% casual loading on their base pay rate. This compensates them for having fewer entitlements under the NES than full- and part-time employees, like paid annual leave. 

Changing employment type

Casual employees can agree to move to full-time or part-time work with their employer.

From 26 February 2025, the NES also offers casual employees an ‘employee choice pathway’ to request a change to full-time or part-time employment. 

To be eligible for this, a casual employee must: 

• Have worked for at least 6 months (for an employer with 15 or more employees) or 12 months (for an employer with fewer than 15 employees). 
• Feel they don’t meet the Fair Work Act’s definition of a casual employee.

Casual employees can’t access the employee choice pathway if they disagree with their employer about converting to full-time or part-time work under the NES or their employer refused their employee choice request in the last 6 months. 

Casuals must give their employer written notice of their request to access the employee choice pathway. Employers must discuss the request with the employee and respond with a written decision within 21 days. 

The response must include:

• Details of the employee’s new employment status, work hours, and date of effect, if the request is granted, or—
• Reasons for refusing the request.

The law outlines 3 reasons an employer can refuse an employee’s request:

1. The employee is, by definition, a casual employee.
2. ‘Fair and reasonable operational grounds’.
3. Changing the employee’s status would violate a law.

If an employer and employee can’t resolve their dispute about changing a casual employee’s status, they can contact the Fair Work Commission for assistance. 

Independent Contractors & Sham Contracting

Australian employment law distinguishes between independent contractors and employees. 

Two tests are used to determine whether someone is a contractor or an employee:

1. Whole of relationship test, which looks at how the relationship works in practice.
2. Start of relationship test, which is based on what’s in the written employment contract or other agreement between the employer and employee.

Which test to use depends on the employer’s type of business. 

Constitutionally covered businesses (foreign corporations and typically those with Pty Ltd or Ltd in their name) use the whole of relationship test, while state-referred businesses (including sole traders, partnerships, and unincorporated entities) use the start of the relationship test.

Please note that the law changed on 26 August 2024 for constitutionally covered businesses. Employment relationships before this date for these businesses must be assessed using the start of the relationship test.

The Fair Work Ombudsman provides more detailed information on these terms and tests. 

Classifying workers correctly is essential, as their classification impacts their entitlements, obligations, and workplace protections. 

Incorrectly classifying them—unintentionally or intentionally—can attract hefty penalties. For example, the maximum penalty for a business with more than 15 employees that engages in sham contracting (telling a worker they’re an independent contractor when the employer knows or reasonably believes they’re an employee) is $495,000. 

The law regarding worker classification is complex. Seek individualised legal advice for help correctly classifying your workers.  

Superannuation

Australia’s superannuation (super) scheme requires employers to put aside money from workers’ pay to save for their retirement. These contributions are paid to a super fund, which invests the money on behalf of the employee. 

Super contributions come from:

• Employers, who must contribute at least 11.5% of a worker’s pre-tax income (called the ‘super guarantee’).
• Employees, who can make additional voluntary contributions, subject to specific rules and caps. 

Employers must contribute to superannuation for most workers, including:

• Employees under 18 who work more than 30 hours a week.
• Domestic or private workers who work more than 30 hours a week.
• Independent contractors paid mainly for their labour.

Employer contributions are due at least quarterly. If an employer fails to pay the super guarantee when required, they become liable to pay an extra amount called the super guarantee charge (SGC). 

Most employees can choose which super fund to make their contributions to. There are some exceptions to this, like employees on temporary working visas.  

Termination and Final Pay

Employers must give employees sufficient written notice before terminating their employment. The amount of notice an employer must provide is:

• 1 week for less than 1 year of continuous service.
• 2 weeks for 1–3 years of continuous service.
• 3 weeks for 3–5 years of continuous service.
• 4 weeks for more than 5 years of continuous service.
• An extra week’s notice applies for employees who are over 45 and have worked for the employer for a minimum of 2 years.

Relevant awards, agreements, or employment contracts may require longer notice periods. 

Notice periods are waived if the employer pays out an employee for the equivalent time. Notice periods also don’t apply if the employee is terminated for serious misconduct. 

If an employee resigns, they may have to give their employer a certain amount of notice under an award, agreement, or employment contract. 

Awards, agreements, and employment contracts usually say when employees must receive their final pay. Many awards stipulate 7 days. 

An employee’s final pay must include:

• Any wages due, including penalty rates and allowances.
• Accrued paid leave, including annual leave, leave loading, and long service leave.
• Payment instead of notice.
• Redundancy pay (where the position itself becomes redundant or the employer files for insolvency or bankruptcy).

Under the NES, redundancy pay is calculated based on the employee’s length of continuous service. For example, employees who have worked for the employer for 1–2 years receive 4 weeks’ redundancy pay, while employees who have worked 4–5 years are entitled to 8 weeks. 

Some employees are exempt from redundancy pay, including most casuals, employees who have worked for the employer for less than 1 year, and employees working for a business that employs fewer than 15 people.

Workplace Health and Safety

Workplace Safety & WHS Laws

Australia has work health and safety (WHS) laws at the federal, state, and territory levels. All states and territories, except for Victoria, have largely adopted Safe Work Australia’s model WHS laws as their own. Victoria’s WHS laws are very similar. 

Obligations under the model WHS laws differ for employers, officers (like business owners), and workers. Employer duties include:

• Providing a safe work environment, including safe plants, structures, and systems of work.
• Proper and safe use of plants, structures, and substances.
• Providing employees with training, information, and supervision.
• Notifying their WHS regulator immediately of any serious work-related injuries, illnesses, or accidents.

Safe Work Australia develops policy and provides information and guidance to support safe workplaces. It also created the model WHS laws, although it doesn’t oversee their application.  

Safe Work Australia is a good starting point for more information about WHS in Australia. You should also consult the relevant state regulator. 

Recordkeeping Obligations

Employers are required to keep time and wage records for 7 years. These include:

• The employee’s start date.
• The employee’s status (full-time, part-time, casual, permanent, or temporary).
• Pay rates.
• Gross and net pay.
• Deductions.
• Other pay entitlements, like allowances, leave loading, and penalty rates.
• Overtime start and end times.
• Total overtime.
• Hours worked (for casual or part-time employees paid on hours worked).
• Used leave.
• Leave balances.
• Super contributions, including the amount, related pay period, pay date, and super fund name.
• Termination details.

Workplace Rights and Protections

Discrimination, Bullying, and Harassment

Employers are prohibited from taking adverse action against employees or candidates based on:

• Race.
• Colour.
• Sex.
• Sexual orientation.
• Pregnancy.
• Breastfeeding.
• Gender identity.
• Intersex status.
• Age.
• Physical or mental disability.
• Marital status.
• Family or carer responsibilities.
• Being a victim of family and domestic violence.
• Religion.
• Political opinion.
• National extraction.
• Social origin.

Sexual harassment is also prohibited. 

Employees who believe they’ve: 

• Experienced unlawful discrimination should contact the Fair Work Ombudsman, which can investigate the matter or refer them to the right organization. 
• Been dismissed based on a protected characteristic should file an application with the Fair Work Commission. They have 21 days after their dismissal to do so. 
• Been subject to bullying can seek an order from the Fair Work Commission for the bullying to stop. 

Right to Disconnect

Employees in Australia have the right to disconnect: They can refuse work-related contact outside of work hours unless doing so would be unreasonable. 

For individuals working for a business with 15 or more employees, this came into effect on 26 August 2024. It applies to small business employees from 26 August 2025. 

Whether it’s unreasonable for an employee to refuse contact depends on various factors, including:

• Why they’re being contacted.
• The nature of the contact.
• The level of disruption it causes to the employee.
• Whether the employee is paid to work outside of their ordinary work hours.
• Their role and seniority.
• Their personal circumstances. 
• Whether there’s a legal reason for the contact.

This right covers all work-related contact, including calls, emails, and messages with employers, suppliers, and clients. 

The right to disconnect is included in all awards, which may also give specific examples of scenarios that do or don’t violate the right. Some registered agreements also address the right to disconnect. 

If an employer or employee can’t resolve a right to connect dispute, they can seek assistance from the Fair Work Commission. 

Fair Work Resources & Employer Help

• Fair Work Ombudsman
• Fair Work Commission
• Safe Work Australia
• ATO – Super & Tax

Disclaimer

The information provided here is a summary only and does not constitute legal advice. While we have made every effort to ensure the information provided is up to date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Laws change frequently and outcomes may vary depending on your business circumstances. We recommend consulting a qualified employment lawyer before making decisions related to workforce management. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.