01 September 2025
From 26 August 2025, small business employers (those with fewer than 15 employees) must comply with new workplace laws introduced under the ‘Closing Loopholes’ reforms.
These changes bring small businesses into line with obligations that have applied to larger employers for the past 12 months, specifically:
- The Employee choice pathway for casual conversion
Here’s a short summary of what these changes mean for small businesses and their teams:
The Right to Disconnect
Employees now have the legal right to disconnect from work outside of their scheduled hours.
This means they can reasonably refuse to monitor, read, or respond to work-related communications after hours, unless the refusal itself is unreasonable.
Employers (acting reasonably) may still contact employees after hours. However, employees are not obliged to respond unless there’s a reasonable expectation to do so.
If a dispute arises, the Fair Work Commission will consider factors such as the nature of the contact, the employee’s role, personal circumstances, and whether they’re compensated for availability when determining what’s ‘unreasonable’.
Employee Choice Pathway for Casuals
Casual employees now have a formal right to request conversion to permanent employment if they meet certain criteria.
Specifically, they must have been employed for at least 12 months and believe they no longer meet the definition of a casual employee.
Employers must respond in writing within 21 days and can only refuse the request on reasonable business grounds or if the employee still meets the casual definition.
Valid reasons for refusal include:
- Operational impacts or substantial changes to business structure or employment conditions.
- Legal or regulatory recruitment requirements that would be breached by accepting the request.
What Should Employers Do Now?
With these new rules now in effect, small businesses should:
- Review and update workplace policies.
- Provide training to managers and staff.
- Establish clear procedures for handling casual conversion requests.
- Communicate expectations around after-hours contact.
If you need help understanding your obligations or updating your policies, get in touch.