2026 Workplace Law Changes: What Employers Need to Know

Published by Odyssey Legal | Business & Litigation Lawyers

As we navigate through 2026, employers across Australia face a significant suite of workplace law reforms that will reshape how businesses operate. These changes affect businesses of all sizes, particularly in the trades and construction sectors where casual employment and flexible work arrangements are common.

At Odyssey Legal, we're committed to keeping our clients informed about these important developments. Here's what you need to know about the key reforms that have recently commenced or are coming into effect this year.

Payday Super: A Fundamental Shift from 1 July 2026

Perhaps the most significant change on the horizon is the introduction of Payday Super. From 1 July 2026, employers will be required to pay superannuation guarantee contributions at the same time as wages and salaries, rather than quarterly.

Under the new system, superannuation contributions must be received by the employee's nominated fund within seven business days of each payday. This represents a fundamental departure from the current quarterly payment cycle and will require substantial changes to payroll systems and cash flow management.

The reform introduces the concept of "qualifying earnings" as the basis for calculating superannuation guarantee obligations. The legislation has now passed Parliament and received Royal Assent, with the Australian Taxation Office preparing compliance guidelines for the first year of operation.

What this means for employers:

• Superannuation can no longer be used as working capital for up to three months.
• Payroll systems must be updated to process superannuation with each pay run.
• Cash flow planning will need to account for more frequent superannuation payments.
• The ATO's Small Business Superannuation Clearing House will close on 1 July 2026, requiring businesses to adopt alternative payment methods.
• Contributions must be received (not just sent) within the seven business day window, so employers need to account for bank clearing delays.

The ATO has indicated it will take a risk-based compliance approach during the first year, focusing enforcement efforts on employers who make no genuine attempt to comply while supporting those making good faith efforts to meet the new requirements.

Right to Disconnect: Now Extended to Small Business

The right to disconnect, which came into effect for larger employers in August 2024, was extended to small businesses (those with fewer than 15 employees) on 26 August 2025.

This workplace right gives employees the ability to refuse to monitor, read, or respond to contact from their employer or third parties (such as clients or suppliers) outside of their working hours, unless their refusal would be unreasonable.

Key considerations:

• The legislation doesn't prohibit employers from contacting employees after hours; rather, it protects employees who reasonably refuse to respond.
• What constitutes "unreasonable" refusal depends on multiple factors, including the reason for contact, the nature of the employee's role, the manner of contact, and any compensation provided for remaining available.
• Contact required by law cannot be reasonably refused.
• Employers and employees are encouraged to have proactive discussions about expectations regarding after-hours contact.

Small businesses should review their communication practices and establish clear guidelines about when after-hours contact may be necessary and appropriate for different roles within the organisation.

Managing Psychosocial Hazards: Strengthened Requirements

Multiple jurisdictions have recently strengthened requirements for managing psychosocial hazards in the workplace. Victoria's Occupational Health and Safety (Psychological Health) Regulations commenced on 1 December 2025, while New South Wales implemented the Work Health and Safety Regulation 2025, and Queensland and South Australia have also enhanced their frameworks.

Psychosocial hazards are factors arising from work design, systems of work, workplace interactions, or the work environment that may cause psychological or physical harm to workers. These can include excessive workloads, low role clarity, inadequate support, workplace bullying, exposure to traumatic events, and poor workplace relationships.

What the new regulations require:

• Employers must proactively identify psychosocial hazards in the workplace.
• Risks associated with these hazards must be eliminated where reasonably practicable, or minimised using the hierarchy of controls.
• Critically, in Victoria and NSW, information, instruction, and training cannot be the exclusive or predominant control measure unless higher-order controls (such as changes to work design, systems, or environment) are not reasonably practicable.
• Employers must review control measures when triggered by specific events, such as changes to work, new information about hazards, incident reports, or employee complaints.
• Consultation with workers, health and safety representatives, and contractors is mandatory.

This represents a significant shift from viewing psychosocial risks as primarily a wellness or employee assistance program issue to treating them as occupational health and safety hazards requiring systematic risk management comparable to physical safety hazards.

Employee Choice Pathway: Casual to Permanent Employment

Small businesses with fewer than 15 employees have been subject to the employee choice pathway since 26 August 2025. This reform fundamentally changes how casual employees can transition to permanent employment.

Under the previous system, it was the employer's responsibility to offer casual conversion to eligible employees. The new employee choice pathway shifts this responsibility to employees, allowing them to initiate the conversion process.

Eligibility criteria for casual employees:

• Must have been employed for at least 12 months (for small businesses) or 6 months (for larger employers).
• Must believe they no longer meet the definition of a casual employee under the Fair Work Act (i.e., their employment relationship now involves a firm advance commitment to continuing and indefinite work).
• Must not currently be in a dispute with the employer about conversion.
• Must not have had a previous conversion request refused in the past six months.

Employer obligations:

• Must consult with the employee about the request before making a decision.
• Must respond in writing within 21 days.
• Can only refuse the request for specific reasons, including: the employee still meets the casual definition; there are fair and reasonable operational grounds for refusal; or accepting would require non-compliance with recruitment laws.
• Must accept or refuse based on legitimate business reasons, as the employee's right to make the request is a protected workplace right under the Fair Work Act.

Employers should review their casual workforce, update HR processes to handle these requests, and ensure managers understand the requirements and tight timeframes for responding.

Preparing Your Business for Compliance

These reforms collectively represent one of the most significant reshaping of workplace obligations in recent years. To ensure compliance, employers should:

Review and update workplace policies to reflect all new requirements, including policies on after-hours communication, psychosocial hazard management, and casual employment arrangements.

Audit employment agreements and contractor arrangements to ensure they comply with new regulations and accurately reflect employment classifications.

Upgrade payroll and superannuation systems well before 1 July 2026 to accommodate payday super requirements. Waiting until mid-2026 creates significant compliance risk.

Provide training to managers, HR personnel, and supervisors on new obligations, particularly regarding psychosocial hazard identification, the right to disconnect, and responding to casual conversion requests.

Conduct psychosocial hazard assessments using a systematic approach that goes beyond wellness programs to identify and control risks through work design and systems changes.

Establish consultation processes with workers and health and safety representatives about work health and safety matters, particularly psychosocial risks.

Review cash flow forecasts to ensure your business can accommodate the transition from quarterly to payday superannuation payments.

How Odyssey Legal Can Help

Navigating these complex reforms requires careful planning and expert guidance. At Odyssey Legal, we provide practical, commercial advice to help businesses comply with their obligations while minimising disruption to operations.

We can assist with reviewing and updating workplace policies, drafting compliant employment agreements, advising on casual conversion requests, developing psychosocial hazard management frameworks, and ensuring your business is ready for payday super.

If you have questions about how these changes affect your business or need assistance preparing for compliance, please don't hesitate to contact our team.

Contact Odyssey Legal:

• Phone: 07 5370 8759
• Email: info@odysseylegal.com.au
• Location: Servicing all of Queensland
• Book Your Free Initial Consultation: We offer a free initial consultation to assess your situation and provide clear advice on the best path forward.

About Odyssey Legal

Odyssey Legal is an expert business law firm, servicing all of Queensland. We focus on helping Queensland businesses protect their interests through strategic legal advice.