Employment law in Australia continues to evolve, with 2025 bringing several key changes affecting both employers and employees. From proposed award variations to whistleblower protections and consultation obligations, these updates are important for businesses seeking to stay compliant and reduce workplace risk.
At MCB Lawyers, our Employment Law team stays across every shift in the legal landscape to help our clients navigate change confidently. Below is a summary of the most recent developments.
✔️ Key Takeaways
- Proposed changes to modern awards may allow inclusive weekly pay rates covering 50 hours and other entitlements.
- New enterprise agreement terms restrict flexibility agreements until after employment begins and expand consultation duties.
- Employee organisations can now be parties to enterprise disputes without prior workplace-level attempts, in some cases.
- Whistleblowers continue to receive strong protections under the Corporations Act, including protection from dismissal.
- Terminating a worker due to visa expiration is not unfair dismissal if handled lawfully and fairly.
- Employers must consult with staff on parental leave about major changes or risk unfair dismissal claims.
Proposed Changes to Modern Awards
The Fair Work Commission (FWC) is currently reviewing significant applications to vary three key modern awards:
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General Retail Industry Award 2020
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Clerks – Private Sector Award 2020
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Banking, Finance and Insurance Award 2020
The applications propose simplifying salary arrangements and reducing administrative complexity by allowing certain employees to receive an all-inclusive weekly rate of pay. This weekly rate would cover:
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50 hours of work (including overtime)
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Leave loading
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Allowances
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Penalty rates and breaks
Employers should be aware of potential implications for pay structures, rostering obligations, and employee entitlements. Submissions and hearings are scheduled throughout mid to late 2025.
The Fair Work Commission is currently reviewing several modern awards as part of its ongoing reform process.
🔗 Learn more about these updates on the Fair Work Commission website.
New Model Terms for Enterprise Agreements
Effective from 26 February 2025, the FWC has implemented updated model terms for enterprise agreements. These changes impact three key areas:
Flexibility
Individual Flexibility Arrangements (IFAs) must now only be made after employment has commenced. Employers are required to provide written proposals and discuss terms at the employee’s request.
Consultation
When major workplace changes are proposed, employers must now clearly communicate the reasons for the changes, consult with affected employees and representatives, and explain the outcome of consultations.
Dispute Resolution
Employee organisations may now be parties to disputes under enterprise agreements. Additionally, the FWC may resolve disputes even where internal workplace-level resolution has not been attempted, if deemed appropriate.
Employers must follow strict consultation obligations under the Fair Work Act to avoid unfair dismissal risks.
🔗 See employer responsibilities at the Fair Work Ombudsman.
Stronger Whistleblower Protections
Recent decisions have reaffirmed that employees making disclosures under the Corporations Act 2001 are protected from dismissal and adverse action. This highlights the growing importance of internal compliance and the need for employers to handle whistleblower matters with care.
At MCB Lawyers, we advise businesses on implementing compliant whistleblower policies and training their teams on lawful disclosure procedures.
Whistleblowers who make disclosures under the Corporations Act are legally protected from adverse actions, including dismissal.
🔗 More on whistleblower protections from ASIC.
Visa-Related Employment Dismissals
In a recent ruling, the FWC confirmed that terminating employment due to the expiration of a visa is not considered unfair dismissal—provided it is managed lawfully.
Employers must ensure:
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The visa status has been verified
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The employee is notified appropriately
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Procedural fairness is maintained
We recommend conducting regular visa checks and keeping clear records to support any future employment decisions.
Employers should confirm visa work rights through the Department of Home Affairs before taking action.
🔗 Check visa work entitlements here.
Parental Leave and the Duty to Consult
Employers must consult with employees on parental leave if significant changes to their role or employment conditions are proposed. Failure to consult could result in an unfair dismissal finding.
Best practice includes:
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Informing the employee of the proposed change
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Giving them the opportunity to respond
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Considering their feedback before a decision is made
This duty applies even if the employee is not actively at work.
Employers should also be mindful of the rights granted to employees under the Paid Parental Leave scheme.
🔗 Read about the scheme on Services Australia.
Need Help Navigating These Changes?
We work closely with clients across the Northern Beaches, the Illawarra, and Western Sydney to ensure their employment practices are legally sound and compliant.
Our services include:
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Drafting and reviewing employment contracts and policies
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Workplace audits and award compliance
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Enterprise bargaining and agreement advice
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Representation in Fair Work disputes
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Employment law advice for visa and termination issues
📞 Contact us today on (02) 9977 1133
🌐 Or reach out via our online form
Our Employment Law team at MCB Lawyers is here to guide you through the 2025 updates with confidence. Whether you’re reviewing contracts, responding to workplace changes, or updating your policies, we’re ready to help you stay compliant and protected.