19 January 2026
In our latest TALKING PEOPLE! episode, Now Actually’s Founder and Managing Director Jenna Paulin and co-host Paul Jansz unpacked the key employment law changes employers need to be aware of. In this blog, we discuss not just what’s coming in 2026, but also the late-2025 updates already influencing risk this year.
While some changes won’t formally take effect until the second half of the year, preparation is still key. We go through the Fair Work changes business owners should be aware of below.
From 1 July 2026, businesses must pay superannuation at the same time they pay wages. This applies to all businesses, regardless of size or industry.
This means that when you process payroll, super must be processed at the same time and paid into your employee’s superannuation account within 7 days. The old quarterly payment cycle will be replaced by this new system.
Superannuation is an employee entitlement that employers are legally obligated to pay. There are instances when employers withhold super or delay their payments, and this update aims to lessen these instances of super contributions being missed or delayed.
It’s not a small change as it will affect payroll processes and cash flow. We encourage business owners to plan ahead to ensure superannuation budgets for the coming year are accurate.
Getting ready for payday super changes means a lot of work for HR. Don’t know where to start or don’t have an HR department? We’ve got a handy list of actions for business owners:
Underpayments are one of the biggest compliance risks for Australian business owners, and this holds true in 2026.
In January 2025, Fair Work deemed the intentional underpayment of employees as a criminal offence under the Fair Work Act 2009 (FW Act).
The Fair Work Ombudsman stated in 2024 that it recovered $1.5 billion in underpayments for workers in the past three years alone. Criminalising wage theft is the government’s response to underpayment and wage theft. Learn more about criminalising wage theft and penalties for underpayment in our Fact Sheet.
During the TALKING PEOPLE! Episode, Jenna highlighted recent court decisions that have changed how offset clauses and annual salaries are assessed. Previously, employers could reconcile salaries against award entitlements over longer periods. Now, reconciliation is expected per pay run, making payroll accuracy more critical than ever.
The key takeaway: paying above award doesn’t automatically protect you. Underpayments can still occur if hours/overtime, allowances and penalties aren’t being accurately tracked and reconciled. This holds true even for employees paid above award.
Fair Work places a heavy emphasis on record-keeping. A business that can’t show how pay has been calculated and reconciled is far more vulnerable during disputes and claims (as opposed to a business that documents and keeps records faithfully).
To be compliant, employers must ensure that:
When was the last time you reviewed your employment contracts?
Employment contracts are another area where businesses unknowingly expose themselves to risk.
In the episode, Jenna noted that a large number of contracts currently in use are either outdated, non-compliant, or no longer aligned with how the business actually operates. Common issues include:
An employment contract should reflect current legislation and the day-to-day reality of your business.
Our best practice recommendation is to review employment contracts annually and when there’s a significant change in legislation.
If you have employment contracts that haven’t been reviewed or updated in a few years, now is the perfect time to do so. Need help with reviewing your employment contracts, especially in light of upcoming legislative changes? Book a consultation with us and getting an audit of your current contracts.
Paid parental leave (PPL) changes will also take effect in 2026. From 1 July 2026, eligible parents will be able to get up to 26 weeks of government-funded paid parental leave.
Leave reserved for each parent in a couple will also increase to four weeks (previously three weeks) on a use-it-or-lose-it basis. Single parents will receive the full 24 weeks.
Our recommendations to keep on top of these changes are:
2025 also saw significant changes in employment law that are still significant in 2026.
In 2025, the Right to Disconnect took effect for small businesses. This change isn’t something employers can address with just a policy alone.
Compliance requires:
While we haven’t seen any cases of disputes when it comes the Right to Disconnect with our clients, we still urge them to err on the side of caution by clearly communicating expectations and how the policy will apply to the team.
The past year also saw a significant update when it comes to psychosocial hazards.
From 1 December 2025, Victorian businesses were obliged to comply with new regulations in managing psychosocial hazards at work.
These hazards can include:
Under current laws, employers must manage these risks and not simply react when a complaint is made. WorkSafe is the regulatory body here, and has clear oversight in this area.
Psychosocial risk management is no longer a “nice to have.” In 2026, employers must have systems, policies, risk registers and education in place to show that they’re actively managing and mitigating psychosocial hazards in the workplace.
The High Court made a landmark ruling in August 2025, which changed how redundancies are viewed by the law.
Even when a role is genuinely no longer required, employers must still follow a fair, well-documented process.
Many redundancy claims fail not because the business intent was wrong, but because of several reasons:
In 2026, employers have to ensure that their preparation and methods are compliant with the law when it comes to redundancy processes.
The list of changes can feel overwhelming, especially for business owners who don’t have a dedicated HR resource.
However, preparing for these changes doesn’t need to be complicated. Our practical tips include:
Prevention is far easier and less disruptive on you and your business than reacting after a complaint is made, or after an issue arises.
If you’re unsure about how to start on your compliance checklist for 2026, why not book a consultation with us? We can help. Whether you need a review of your documents, or want an HR strategy for 2026, we can partner with you and provide tailored guidance and expertise. Reach out to us here.
