2025 Employment Law Updates: Insights from Christy Miller, Partner at Clayton Utz

At our 2025 End-of-Year event, we were privileged to host Christy Miller, Partner at Clayton Utz, who delivered a timely and engaging presentation titled “The Ghosts of Christmas Past, Present and Future (Also known as the 2025 Employment Law Updates).” The session provided essential updates and practical guidance for business leaders navigating the evolving landscape of employment law.  

The Ghost of Christmas Past: Right to Disconnect 

One of the most significant changes discussed was the new “Right to Disconnect.” Employees now have a workplace right to refuse to monitor, read, or respond to contact from their employer outside of working hours, including contact from third parties such as parent companies or clients. However, this right does not apply if the refusal is unreasonable—for example, if contact is required by law or if the employee’s role and compensation justify after-hours availability. 

Key factors in determining reasonableness include: 

  • The reason and method of contact 
  • The level of disruption caused 
  • Compensation for availability or additional hours 
  • The employee’s role, responsibility, and personal circumstances 

Employers must also consider health and safety risks, family responsibilities, overtime entitlements, notice periods, industry work patterns, and the nature of the employee’s role when assessing reasonable additional hours.  

The Ghost of Christmas Present: Privacy Protections 

Christy highlighted the introduction of a statutory tort for serious invasion of privacy. Individuals now have a cause of action if their privacy is intentionally or recklessly invaded, either through intrusion or misuse of personal information. The right is actionable without proof of damage, provided there is a reasonable expectation of privacy and the public interest in privacy outweighs any countervailing interests. 

Employers should be aware of enhanced penalties for misuse of personal information and the potential removal of the Employee Records Exemption. Automated Decision Making Transparency rules will also come into effect in December 2026, requiring organisations to understand and document how automated systems impact decisions such as recruitment. 

The Ghost of Christmas Future: Managing Underpayments 

Recent Federal Court decisions have clarified that annualized salary arrangements cannot absorb Award entitlements over an annual period. Employers must ensure that payments in each pay period fully satisfy Award entitlements, and set-off arrangements are only permissible within individual pay periods. This means top-up payments may be required to avoid underpayments, and strict compliance with the Fair Work Act and relevant Awards is essential. 

Employers are encouraged to review their practices, keep accurate records, and consider options such as Individual Flexibility Arrangements or Guarantees of Annual Earnings. Justice Perram’s decision is interlocutory and may be subject to appeal, but proactive compliance is advised.  

 

What Should Businesses Do Next? 

  • Review workplace policies and contracts to ensure compliance with new rights and obligations. 
  • Provide training for team with access to sensitive data. 
  • Audit automated decision-making systems and document their impact. 
  • Ensure payroll practices align with the latest legal requirements. 

For tailored advice and support on these employment law changes, contact Harrisons today. Our team is ready to help you navigate these updates and protect your business. 

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