New year, new rules: Setting up your workplace for success in 2026
As 2026 begins, it’s more than just a fresh calendar year. It’s a chance to reset, refocus, and ensure your workplace is ready for what’s ahead in 2026.
Workplaces across Australia face a raft of legal obligations and opportunities to build fairer, safer, and more productive environments that support both employees and employers. While 2025 saw a wide range of employment law changes, this article focuses on three key areas that are especially relevant for organisations in 2026: wage and superannuation updates, employment records and bonus structures, and the growing importance of proactive sexual harassment prevention.
1. Staying ahead of wage and super changes
This year marks a turning point in how pay and superannuation are managed.
New ‘wage theft’ provisions were introduced last year as a result of the Fair Work Legislation Amendment Act 2023 (Cth) and the Fair Work Legislation Amendment Act 2024 (Cth), meaning that intentional underpayment of wages or entitlements can now result in criminal liability, with increased civil penalties for breaches.
On the superannuation front, the ‘Payday Superannuation’ regime is set to commence on 1 July 2026. Employers will be required to pay their employees’ superannuation at the same time as their salary and wages, to ensure the super contributions reach employees’ funds within seven business days of each payday, rather than the current minimum payment of quarterly. This shift requires a rethink of payroll processes and a renewed focus on compliance, as the penalties for getting it wrong are significant.
With compliance obligations and payroll accuracy under increasing scrutiny, now is the ideal time to conduct a comprehensive audit of your payroll system. Ensure alignment with employment contracts, applicable awards, enterprise agreements, and the Fair Work Act 2009 (Cth), so every payment is correct, compliant, and defensible.
2. Employment records and bonus structures
Late last year, the Federal Court of Australia in FWO v Woolworths Group Limited [2025] FCA 1092 made it clear that employers cannot use set-off clauses to offset entitlements across different pay periods. In other words, a set-off clause is only valid if it applies to the same period in which the entitlement arises, otherwise it is unenforceable. Relying solely on roster records and clocking data isn’t enough to meet compliance obligations.
What does this mean in practice?
Organisations should review employment contracts to ensure set-off clauses are compliant with the latest ruling. Payroll and HR systems must be configured to accurately track entitlements by pay period, not just in aggregate. Payroll records should clearly demonstrate all payments, hours worked, and entitlements due. Failing to do so can expose businesses to costly challenges, significant back-pay liabilities if entitlements have been incorrectly offset.
Earlier in 2025, the Federal Court of Australia held in the case of Wollermann v Fortrend Securities Pty Ltd [2025] FCA 103 that contractual terms requiring a bonus payment to be deferred for up to seven months, and subject to forfeiture if employment ceased during that deferral period, was unlawful. The decision was based on section 323 of the Fair Work Act 2009 (Cth), which requires that amounts payable for work performed must be paid in full, at least monthly. In practice, this ruling means employers cannot structure bonus arrangements in a way that delays payment beyond the statutory requirement or makes payments contingent on continued employment during a lengthy deferral period. Any bonus earned for work performed must be paid promptly and in full, at least on a monthly basis and an employer cannot rely on contract wording to forfeit amounts that were already earned. Put simply, contractual terms cannot override statutory wage‑payment obligations, even if they have been agreed at the time of signing.
Together, these decisions underscore the importance of precision in employment contracts and payroll practices: entitlements must be correctly allocated to the relevant pay period, and bonuses earned for work performed must be paid promptly in line with statutory requirements.
3. Sexual harassment: Why proactive prevention is now essential
Recent court decisions have fundamentally raised the bar for employer responsibility in preventing sexual harassment at work. In Magar v Khan [2025] FCA 874, the Federal Court delivered a landmark judgment, awarding $305,000 to a young employee who endured persistent harassment and victimisation by her workplace principal. The employer’s failure to intervene and tolerance of a culture where sexualised behaviour was normalised, was central to the court’s finding of liability. This case was the first major test of the strengthened sex-based harassment provisions under the Sex Discrimination Act 1984 (Cth), and it confirmed that employers have a clear duty of care to prevent harassment and maintain a safe, inclusive culture. Simply having a policy is not enough; organisations must actively foster respectful behaviour, provide regular training, have well communicated and confidential avenues for employees to raise concerns and step in swiftly when issues arise.
A similar message came from the Queensland Industrial Relations Commission in JF v Oishi Teppanyaki & Café Pty Ltd & Anor [2025] QIRC 209, where a restaurant was ordered to pay $140,000 after the owner harassed and assaulted an employee. The Commission made it clear that employers cannot plead ignorance, as they have a proactive duty to manage workplace risks, investigate complaints promptly, and take corrective action. Both cases highlight that robust prevention policies, clear reporting pathways, and a culture of accountability are essential. Organisations are being held to a higher standard, and the financial and reputational consequences of failing to act are more significant than ever.
Key takeaways
As 2026 unfolds, organisations have an opportunity to strengthen compliance, enhance transparency, and foster safer, more inclusive workplaces. By acting now to align systems, review policies, and prioritise cultural change, businesses cannot only meet their legal obligations but also set the foundation for long-term success in 2026.
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