Blog Post:

Employment Law Updates from 1 July 2025: What Every Employer Must Know

As we approach 1 July 2025, there are several key changes in workplace laws and standards that business owners and managers should be aware of to stay compliant and prepared.

1. Increase in High-Income Threshold for Unfair Dismissal Claims

From 1 July 2025, the high-income threshold for unfair dismissal cases will rise to $183,100 per year.

This means:

Employees earning above this threshold will generally not be eligible to lodge unfair dismissal claims under the Fair Work Act 2009 (Cth).
Employees earning more than this amount annually will no longer be eligible to bring unfair dismissal claims under the Fair Work Act.
This adjustment reflects the government’s recognition that higher-paid employees generally have more bargaining power and other legal options available outside the Fair Work Commission.

2. Increase in Compensation Limit for Unfair Dismissal

The maximum compensation limit for unfair dismissal claims will also increase to $91,550 for dismissals occurring on or after 1 July 2025.

This is significant because:

It caps the amount an employee can be awarded in compensation for unfair dismissal.
Employers should ensure their dismissal processes are legally sound to avoid costly compensation payouts up to this new limit.

3. ‎Minimum Wage Increase

The Fair Work Commission has announced a 3.5% increase to the National Minimum Wage, raising it to $948 per week or $24.95 per hour. This change applies from the first full pay period on or after 1 July 2025. Additionally, minimum pay rates under modern awards will also increase by 3.5%.

4. Right to Disconnect

Employees in Australia now have the legal right to refuse contact from their employer outside of their designated working hours, unless such refusal is deemed unreasonable. While this provision has been effective for large businesses since 26 August 2024, it will extend to small businesses from 26 August 2025.

6. Paid Parental Leave Extension

In alignment with Services Australia’s updated guidelines for the Parental Leave Pay scheme, the duration of paid parental leave has been extended. For children born or adopted on or after 1 July 2025, eligible parents will receive 24 weeks (120 days) of Parental Leave Pay. This is part of a phased increase, with the scheme planned to further expand to 26 weeks (130 days) by 2026.

For more on the types of parental leave, see this link.

5. Updated Fair Work Information Statement (updated)

The Fair Work Ombudsman has released the latest versions of the Fair Work Information Statement and the Casual Employment Information Statement, effective from 1 July 2025.

What this means for employers:
You’re legally required to provide the updated statement(s) to every new employee upon commencement of employment — including both permanent and casual employees.

These statements outline key workplace entitlements, including the National Employment Standards, award coverage, right to request flexible work, and protections against unfair dismissal or adverse action.

For more information visit the Fair Work pages here:

Download the updated statement PDF documents here:

Tip: It’s good practice to store the most current version on file and review your onboarding processes to ensure compliance.

How Strategic HR Australia Can Support Your Business

Navigating employment law changes can be complex, especially with multiple updates coming into effect simultaneously. At Strategic HR Australia, we partner with business owners and managers to:

Review and update HR policies and employment contracts aligned with new laws.
Provide practical advice on managing dismissals and avoiding costly claims.
Deliver tailored training to help your team understand and implement workplace law changes.
Support proactive wage compliance and payroll audits to reduce risks of underpayments.