New Rules for Small Business

Effective August 26th 2025

From today, new workplace laws come into effect for small businesses and their employees.

The two key changes are

  • The Right to Disconnect
  • The Employee Choice Pathway for casual employees

Let’s break them down.

The Right to Disconnect

From today 26th August 2025, employees in small businesses have the legal right to disconnect.

This means they can refuse to monitor, read, or respond to calls, emails or messages outside their working hours, unless it would be unreasonable for them to refuse.

So, what’s “unreasonable”? It will depend on the circumstances, for example, if there’s an emergency, a critical business issue, or if the employee is compensated for being available.

What this means for you as a business owner

  • Think carefully about when you contact employees outside their rostered hours.
  • Review whether roles genuinely require after-hours contact and, if so, how that’s managed.
  • Consider updating policies or expectations so everyone’s clear on when communication is reasonable.

Employee Choice Pathway

Casual employees in small businesses now have more control over their employment type.

From today, eligible casuals can notify their employer in writing if they want to change to part-time or full-time employment. This is known as the Employee Choice Pathway.

Casual employees may

  • Choose to remain casual, or
  • Request to move to permanent part-time or full-time work.

As an employer, you’re required to respond to any requests in writing. You can refuse a request in certain circumstances (for example, if the employee is not eligible, or if the conversion wouldn’t be reasonable for business operations).

What this means for you as a business owner

  • Be prepared for requests from your casual workforce.
  • Put a clear process in place for responding to these requests.
  • Keep records of requests and your responses to remain compliant.

Under the Fair Work Act 2009, a small business employer is defined as

An employer with fewer than 15 employees.

When counting employees, you must include

  • All employees employed at the time (not just full-time staff).
  • Part-time and full-time employees.
  • Casual employees who are employed on a regular and systematic basis.

The headcount is based on the total number of employees across the business, not just at one site or location.

Need help understanding what these changes mean for your business?

We can guide you through the new rules, review your current practices, and help you stay compliant while keeping things simple for your team.

Get in touch with us today to make sure your business is ready.