There have been more changes to Australian workplace law in the past three years than in the decade before it. The Closing Loopholes legislation, passed in late 2023 and early 2024, introduced a wave of changes that are staggered across multiple start dates, some already in effect and others landing through 2025 and into 2026.
Agriculture rarely gets a heads-up when these things change. The communications tend to be aimed at office-based businesses and larger employers. So here is a plain summary of what matters for farming businesses and what you need to have in order.
1. The definition of a casual employee changed
From August 2024, the legal definition of a casual employee changed. Under the new rules, a worker is only genuinely casual if there is no firm advance commitment to continuing and indefinite work. The test is now based on the real nature of the working arrangement, not just what the contract says.
For farms that rely heavily on casuals (and most do), this matters. If someone has been turning up on a regular and systematic basis for an extended period, there is a real question about whether they are genuinely casual in the eyes of the law. Misclassifying an employee as casual when they aren't is an underpayment risk.
What to do: Review anyone you classify as casual who has been working with you regularly for more than six months. If the pattern looks more like ongoing employment than genuine irregularity, it's worth getting a proper read on the situation.
2. Casual conversion is now a right, not a request
Eligible casual employees now have a pathway to request conversion to permanent employment after 12 months, and employers have obligations to respond to that. This is not new in concept, but the rules around it tightened under the Closing Loopholes changes.
In agriculture, many casuals work seasonally and genuinely don't want or qualify for conversion. That's fine. But you need to understand when the obligation to offer or respond to conversion applies, and you need to handle those conversations properly if they come up.
3. Right to disconnect applies to all businesses now
From August 2025, the right to disconnect applies to small businesses as well as large ones. This gives employees the right to refuse to monitor, read, or respond to contact from their employer outside of their working hours, unless that refusal is unreasonable in the circumstances.
On farms, this is worth thinking through practically. A lot of farm management involves last-minute contact: weather events, equipment failures, livestock issues. That contact doesn't automatically become unlawful under the right to disconnect. But "we've always just called people when we needed them" is not a sufficient position to hold anymore.
What to do: Be clear in employment contracts or policies about when out-of-hours contact is expected as a genuine requirement of the role, and what's reasonable. Managers and supervisors should understand the rule so they're not inadvertently creating issues.
4. Same job, same pay for labour hire
If you use a labour hire company to bring workers onto your property, and you have an enterprise agreement in place, those labour hire workers may now be entitled to the same pay as your directly employed workers doing equivalent work. This is the "same job, same pay" provision.
Most farms don't have enterprise agreements. Most farm businesses sit under Modern Awards (the pay rules set by Fair Work Australia for each industry), so this may not apply directly to you. But if you do have an enterprise agreement, or if you're using significant volumes of labour hire, it's worth checking whether this provision affects your arrangements.
5. Wage theft is now a criminal offence
From 1 January 2025, deliberately underpaying workers is a criminal offence under the Fair Work Act. This isn't aimed at honest mistakes. It's aimed at intentional conduct. But it raises the stakes on getting payroll right. "We didn't realise the award said that" is a much less comfortable position to be in when the consequences extend beyond a back-payment.
The penalties for the civil side of underpayment have also increased significantly in recent years. Currently up to $93,900 per contravention for a business, and $18,780 for an individual. In serious cases, those can apply per worker, per breach.
6. Minimum wages go up every July
This one isn't part of the Closing Loopholes changes. It happens every year. The Fair Work Commission's Annual Wage Review takes effect on 1 July. Minimum Award rates go up. If you don't review your pay rates each July, you can quietly slide into underpayment without meaning to.
Set a reminder. Check the relevant Award rates in early July each year. It takes 30 minutes and it's one of the simplest ways to stay clean.
What you actually need to do
- Review your casual workforce and check that everyone classified as casual genuinely is
- Make sure employment contracts or position descriptions reflect any genuine out-of-hours contact requirements
- If you use labour hire, check whether same-job-same-pay applies to your situation
- Check the relevant Award rates every July and update pay accordingly
- Keep records: payslips, hours, leave balances. If something is ever questioned, your records are your defence
This article is general information only and is not legal or HR advice. Workplace laws change regularly and their application depends on your specific situation. If you're not sure how these changes affect your business, get proper advice.