Employment Law Changes 2026

Are You Across These Key Employment Law Changes For Victorian Workplaces?

2026 has been a big year for employment law and workplace compliance.

With a number of significant changes now in effect, and more on the horizon, it is important that employers and business owners stay informed and prepared.

From psychosocial hazards and workplace mental health obligations to Payday Super and wage compliance, these reforms have the potential to impact businesses of all sizes.

To help employers navigate the changing landscape, we’ve outlined some of the key employment law developments affecting Victorian workplaces in 2026.

1. Psychosocial Hazards: A New Workplace Safety Priority

Victoria’s new Psychosocial Hazard Regulations commenced on 1 December 2025 and represent one of the most significant workplace safety reforms in recent years.

The regulations require employers to proactively identify and manage psychosocial hazards that may impact employee mental health and wellbeing.

Psychosocial hazards can include:

  • Excessive workloads
  • Unrealistic deadlines
  • Bullying and workplace conflict
  • Occupational violence and aggression
  • Poor workplace relationships
  • Low levels of job control
  • Exposure to traumatic events
  • Remote or isolated work
  • Fatigue and burnout

Importantly, employers are now required to identify psychosocial hazards, assess the associated risks, implement appropriate controls and regularly review those controls.

For many businesses, particularly those operating in healthcare, dental, veterinary and allied health settings, psychosocial hazards such as workload pressures, staff shortages and client aggression are already recognised workplace risks that require active management.

Businesses should ensure that psychosocial risks are incorporated into their workplace health and safety systems, risk registers and management practices.

2. Payday Super

One of the most significant payroll changes in decades will commence on 1 July 2026.

Under the new Payday Super regime, employers will generally be required to pay employees’ superannuation contributions at the same time as wages are paid, rather than on a quarterly basis.

The reform is designed to improve employee retirement outcomes and reduce unpaid superannuation.

However, it will have practical implications for employers, including:

  • Increased payroll administration
  • More frequent superannuation processing
  • Potential cash flow impacts
  • Greater visibility and compliance monitoring by the Australian Taxation Office

Employers should be working closely with their payroll providers and accountants to ensure systems are ready ahead of implementation.

3. Wage Compliance

Although not a new legislative change, wage compliance remains one of the most significant risks facing Australian employers.

The Fair Work Ombudsman continues to actively investigate:

  • Award interpretation errors
  • Employee misclassification
  • Underpayment of wages and entitlements
  • Record-keeping failures
  • Contractor versus employee arrangements

Many underpayment issues arise from payroll systems, outdated employment contracts or incorrect award classifications rather than deliberate conduct.

Regular workplace audits remain one of the most effective ways to identify and address potential compliance risks before they become costly disputes.

4. Positive Duty Obligations

Employers also need to remain focused on their obligations under Australia’s positive duty framework.

The positive duty requires employers to take proactive and reasonable measures to eliminate, as far as possible:

  • Sexual harassment
  • Sex discrimination
  • Harassment on the basis of sex
  • Hostile workplace environments
  • Victimisation

Importantly, employers can no longer simply respond to complaints when they arise.

The Australian Human Rights Commission now has powers to investigate and enforce compliance, meaning organisations should be able to demonstrate the preventative measures they have implemented.

Policies alone are unlikely to be sufficient without accompanying training, leadership engagement and workplace culture initiatives.

5. Right to Disconnect

The Right to Disconnect provisions are now fully operational and continue to reshape expectations around after-hours communications.

While the legislation does not prohibit employers from contacting employees outside ordinary working hours, it gives employees the right to refuse unreasonable work-related contact outside those hours.

Employers should consider:

  • Reviewing after-hours communication practices
  • Clarifying emergency contact expectations
  • Training managers on appropriate communication boundaries
  • Managing client expectations regarding employee availability

Practical workplace policies and clear communication remain critical to avoiding disputes.

What Should Employers Be Doing Now?

For Victorian employers, the key compliance priorities for 2026 should include:

  1. Conducting psychosocial hazard risk assessments.
  2. Reviewing workplace health and safety systems.
  3. Preparing payroll systems for Payday Super.
  4. Undertaking wage and award compliance audits.
  5. Reviewing sexual harassment and positive duty compliance measures.
  6. Updating workplace policies to reflect the Right to Disconnect.

With regulators increasingly focused on proactive compliance, businesses that address these issues now will be better positioned to minimise risk and maintain productive workplaces.

If you would like assistance reviewing your workplace policies, payroll practices or workplace health and safety obligations, the team at Aintree Group Legal can assist with your employment law needs.

This is general advice only and has not been prepared with your situation and needs in mind. For individual and personalised advice, we highly recommend that you seek out proper professional advice from your accountant or financial adviser.

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