HR Legislation Changes from January 2025

Changes to Modern Award Classifications and Minimum Pay Rates

Starting in 2025, significant changes to modern awards will impact several industries. These changes will begin in January and April 2025, with key updates reshaping how roles are defined and compensated.

Introductory Classifications

A major change involves introductory classifications, which apply to the first stage of a job. This stage includes:

An initial induction period
Time spent undertaking training, or
Time to gain the basic skills and experience required for the job.

These classifications will now have a clear time limit, generally no longer than six months. The aim is to prevent workers from staying in lower-paid introductory roles for extended periods. Once employees complete training or gain sufficient experience, they will be expected to move to a higher classification.

New Pay Rules

From January 2025, the minimum pay rates for some introductory roles will be increased to ensure workers earn at least the National Minimum Wage. This ensures that, even in introductory classifications, no worker’s pay will fall below the legal minimum. All employment classifications that aren’t introductory classifications must be paid at least the National Minimum Wage.

Awards Affected

Starting 1 January 2025:

Airline Ground Staff Award
Air Pilots Award
Amusement Award
Animal and Veterinary Services Award
Architects Award
Australian Government Award
Aquaculture Industry Award
Business Equipment Award
Cement, Lime and Quarrying Award
Children’s Services Award
Concrete Products Award
Cotton Ginning Award
Dry Cleaning and Laundry Award
Electrical, Electronic and Communications Contracting Award
Fitness Award
Food and Beverage Manufacturing Award
Funeral Award
Graphic Arts and Printing Award
Joinery Award
Live Performance Award
Manufacturing Award
Marine Tourism and Charter Vessels Award
Meat Award
Pest Control Award
Port Authorities Award
Rail Industry Award
Seafood Processing Award
Seagoing Industry Award
Sugar Industry Award
Textile, Clothing, Footwear and Associated Industries Award
Timber Award
Travelling Shows Award
Vehicle Award
Wine Industry Award
Wool Storage, Sampling and Testing Award

Starting 1 April 2025:

Horticulture Award
Pastoral Award

Next Steps

If your award is listed above, and you want to read the changes before they take effect, you can review the final determination. A final determination is a formal ruling by the Commission that outlines the changes, which must be followed by law.

Visit the Review of C14 and C13 rates in modern awards page and select ‘Determinations’. You’ll be able to access the final determination for your award.

Some pay guides have been updated and are here – Changes to entry-level classifications in awards – Fair Work Ombudsman

From January 2025, you may need to update your pay rates to reflect the new rules and timelines. Businesses with enterprise agreements must also ensure they comply with the updated regulations.

Changes to Wage Theft Laws

The Changes

From January 2025, new laws will make wage theft a criminal offence across Australia, introducing strict penalties for businesses and individuals who intentionally underpay employees. An employer will commit an offence if they are required to pay an amount under the Fair Work Act or an industrial instrument (such as wages or superannuation) and intentionally engage in conduct that results in failing to pay those amounts on or before the due date. The move complements existing state legislation in Queensland, Victoria, and Western Australia.

Companies found guilty of intentional underpayment could face fines of either the greater of three times the underpayment amount or $7.825 million, with a flat penalty of $7.825 million if the underpayment amount cannot be determined. Individuals can face up to 10 years in prison, fines of either three times the underpayment amount or $1.565 million, or a flat penalty of $1.565 million if the underpayment amount cannot be determined. Civil penalties for non-small business employers who contravene underpayment laws will also increase significantly, potentially reaching up to three times the value of the underpayment or the relevant penalty unit amount.

The Fair Work Ombudsman will also have enhanced powers to investigate and prosecute wage theft cases, making it essential for businesses to comply with the law.

The Voluntary Small Business Wage Compliance Code

A Voluntary Small Business Wage Compliance Code is being developed as part of the reforms. Small businesses that comply with the Code will not face criminal prosecution for underpaying employees. This provides a pathway for small businesses to demonstrate good faith compliance and avoid criminal liability for genuine mistakes. The Code and our supporting guide are now available for download at Voluntary Small Business Wage Compliance Code.

Creating a Culture of Compliance

A proactive approach to compliance not only avoids penalties but also builds trust with employees. Clear communication about pay rates, entitlements, and workplace rights also goes a long way to prevent disputes. If a mistake does happen, addressing it promptly and transparently can resolve the issue before it escalates.

What Employers Need to Do

Accurate record-keeping will become even more critical, and employers must ensure they’re properly documenting hours worked, pay rates, and entitlements. Even unintentional underpayments could lead to penalties if adequate records are not maintained, or mistakes are not promptly corrected. It is a good opportunity to double-check compliance with awards and agreements, and we encourage you to come to us for advice if you are unsure. With a little preparation and investment into knowing your Awards well, you can navigate these changes smoothly and focus on building positive relationships with your team and growing your business.

Additional Changes to Aged Care, SCHADS and Nurses Awards

If you have employees under the Aged Care, SCHADS or Nurses Awards, there are also changes to classifications and minimum pay rates from 1st January 2025.

The 1 January 2025 pay guides for the affected awards can be accessed below:

Need Advice?

And as always, we welcome you to contact our team if you have any questions regarding this matter or any other HR concerns.

HR Central