A new report has shed light on the impact of recent legislative changes on Australian workplaces, including the right to disconnect. How are the changes being received, and where are employers seeing the biggest gains?

Since 2022, Australian employment law has undergone a series of rapid and far-reaching reforms. From flexible work legislation to an overhaul of casual employment, these changes are not just reshaping employment frameworks – they’re impacting every facet of how organisations engage, support and retain their people.

A standout example is the right to disconnect, introduced in August 2024 for non-small business employers (and due to come into effect in August this year for small businesses). Less than a year later, employers are reporting significant business and cultural gains from the legislation. 

The latest Australian Quarterly Work Outlook from the Australian HR Institute (AHRI), based on responses from more than 600 senior business decision makers, reports that the majority of employers (58 per cent) believe the right to disconnect has improved employee engagement and productivity at their organisation.

The report also examines how other legislative reforms – particularly those introduced through the Fair Work Legislation Amendment (Closing Loopholes) Acts of 2023 and 2024 – are being implemented and felt on the ground.

“Many employers reported that a number of the reforms, such as changes to fixed-term contracts, casual employment and the Respect@Work agenda, have had a positive impact on their organisation, including on productivity and employee engagement,” says AHRI’s CEO Sarah McCann-Bartlett.

“In addition, employers appear open to further changes, including extending the right to request flexible working.”

Based on the findings, here’s how some of the most significant reforms of the past few years are tracking – and where employers are seeing the biggest returns.

Respect@Work tops list of beneficial policies

AHRI’s data shows that many of the recent reforms are not just being managed – they’re being welcomed. When asked to assess the overall impact of a number of key workplace policies, most employers reported more benefits than drawbacks.

The Respect@Work agenda, which was introduced in December 2023 with the goal of preventing and responding to sexual harassment and bullying in the workplace, recorded the strongest net positive impact at +66.

Other well-received legislative changes included flexible working (+47), limits on fixed-term contracts (+37) and casual employment conversion (+35).

See a full breakdown below.

This indicates there is still work for HR and leaders to do in ensuring the policy is consistently understood, supported and embedded across all levels of the organisation – but particularly among middle and senior managers, whose buy-in is essential to normalising new expectations around availability, role-modelling healthy boundaries and translating policy into everyday practice.

Casual employment

The changes to casual employment introduced in August 2024 have brought greater clarity to the definition of casual work, and established a formal pathway for eligible employees to transition into permanent roles. These changes were designed to address long-standing concerns about job security and classification disputes. 

Early feedback from employers on the changes has been largely positive; 68 per cent of employers say they are now more likely to hire casual workers under the new rules, according to AHRI’s report (see graph below).

This increased confidence likely stems from the greater legal certainty afforded by the new legislation, which reduces the perceived risk of misclassification or legal disputes.

Employers also report broader benefits. Nearly two-thirds (64 per cent) say employee engagement has improved since the changes came into effect, and a similar proportion (62 per cent) report productivity gains. 

These outcomes point to an opportunity for HR to reassess their casual employment strategies not just through the lens of compliance, but as a way to drive engagement and strengthen trust.

Fixed-term contracts

Under new rules implemented in December 2023, fixed-term contracts are now subject to stricter limits on duration and renewals. This policy aims to curb the use of rolling short-term contracts and provide greater employment security.

Since these rules were introduced, 71 per cent of organisations say they’ve had a positive impact on operations, while just 14 per cent report a negative effect, according to AHRI’s report. 

Meanwhile, 78 per cent say the reforms have been well received by their workforce (see graph below). 

While the reduced flexibility of the new framework might require more deliberate workforce planning, it also creates space for HR to revisit contract practices, clarify employment relationships and reinforce fairness in hiring. 

The strong positive sentiment among both employers and employees suggests many organisations are already seeing the value in this adjustment.

Employer attitudes to upcoming initiatives and policies

Despite the pace and scale of workplace law reform over the past three years, AHRI’s findings suggest employers are open to continued change in the next parliamentary term.

This is particularly true in the case of flexible working. Almost half of employers (48 per cent) say they support extending the right to request flexible working to all employees – a right that is currently limited to certain groups, such as parents, older workers and people with disability. 

A further 30 per cent support the policy in principle, but not before 2027 (see graph below).

Employers also expressed interest in strengthening anti-discrimination protections. Just over half (52 per cent) back the immediate addition of reproductive health as a protected attribute under the Fair Work Act and other relevant legislation. A further 23 per cent are supportive of the idea but prefer a two-year timeline.

This growing readiness among employers to engage with evolving employee expectations is reshaping how workplace reform is understood. Rather than treating compliance, culture and performance as separate considerations, many organisations are beginning to approach them as interconnected.

It has therefore become more crucial than ever for leaders to work closely with HR to ensure the intent of reform is reflected in employees’ day-to-day experiences of work.

All information, content and materials available on this site are for general informational purposes only. The contents of this article do not constitute legal advice and should not be relied upon as such.

Discover more findings on the current state of employment by accessing AHRI’s full Quarterly Australian Work Outlook for June 2025. Download the full report here.