A refresher for company directors on current workplace laws

Recent legislative changes made to Australian workplace regulations have reshaped the expectations for company directors and organisational leadership, writes Nich Burch.

While these laws may have momentarily captured attention, their ongoing implications may have been lost in the day-to-day operational challenges that businesses have faced this year.

Our firm recognises the need for directors to remain not just compliant but also proactive in understanding these sweeping workplace law updates.

The start of a new year is the perfect time for employers to refresh themselves on the top five key changes that demand immediate board-level attention.

1. Flexible work arrangements

The contemporary workplace is no longer confined to rigid, nine-to-five (or more!) structures. Post-COVID-19 legislative updates have solidified employees’ rights to request flexible working arrangements under circumstances, including childcare responsibilities, disability support, and family violence considerations.

For company directors, this means more than passive acknowledgment. Boards must actively cultivate policies that not only accommodate these requests but genuinely support them. This involves educating management teams about the nuanced legal requirements and investing in technological infrastructure that enables seamless remote and flexible working.

Successful implementation requires a holistic approach, including clear communication, robust technological support, and a cultural shift that values output over traditional presence metrics.

2. The right to disconnect

To combat the increasing blurring of boundaries between work and personal life due to technological advancements, the “right to disconnect” law has been introduced to protect employee mental health. This legislation empowers workers to refuse engagement with work-related communications outside their designated working hours.

This should be viewed by business directors as an opportunity to reimagine workplace productivity, not as a limitation. Implementing clear, transparent policies that respect boundaries while maintaining operational effectiveness is possible. It involves creating explicit guidelines about after-hours communication and ensuring management understands both the legal requirements and the cultural implications.

3. Preventing workplace sexual harassment

The amendments to the Fair Work Act have elevated diversity and inclusion from a corporate aspiration to a legislated board responsibility. Boards now have a positive duty to take reasonable steps to prevent and address workplace sexual harassment.

This goes beyond policy documentation. It requires a proactive and comprehensive approach involving regular training, robust reporting mechanisms, and a commitment to cultural transformation. Directors should lead by example, embedding respect and safety into every organisational interaction to preserve their company’s culture.

4. Transparency in confidentiality and remuneration

Significant changes now prohibit employers from enforcing confidentiality around remuneration discussions. Employment agreements containing such restrictive clauses are now unenforceable, signalling a broader move towards workplace transparency.

Directors should take the quieter January period to immediately review standard employment documentation, working closely with HR and legal teams to ensure compliance and foster a culture of openness and trust.

5. Supporting employees through family and domestic violence leave

The introduction of 10 days of paid family and domestic violence leave is a significant step in supporting employees. Beyond just compliance, this legislative change calls for a compassionate, supportive approach.

Often, employees aren’t aware they’re entitled to this leave, which adds unnecessary financial stress to their situation. Boards are encouraged to not only implement the leave but also to actively promote awareness and integrate comprehensive employee support programs.

By doing this, employers will create an environment where employees feel safe seeking assistance without the fear of stigma or professional repercussions.

Leadership in a changing landscape

Navigating these new workplace law changes requires more than legal compliance; it requires strategic leadership. Company directors should view these updates as opportunities to create more dynamic, supportive, progressive, and productive work environments.

By staying informed, proactively adapting policies, and fostering a culture of respect and flexibility, Australian legal businesses can turn regulatory challenges into competitive advantages.

Nich Burch is the director of Burch & Co.