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Compliance or Chaos? Keeping Your Workplace in Check in 2025
Welcome to another episode of HR to Go, where we dive into the topics that shape your workplace. Today’s episode is titled “Compliance or Chaos”, where, we are diving into the world of HR and IR compliance to look at a couple of key areas that may cause some issues for businesses. In my opinion, compliance is not just about dodging fines. It is about building a business where people want to work, where risks are managed before they become legal battles, and where you, as a manager, or business owner, are not constantly looking over your shoulder.
So, let’s get into it.
First, let’s start with why compliance matters….
It is easy to think of compliance as just a bunch of rules that HR makes you follow. But here’s the reality: when compliance is done right, it protects your business, your employees, and—you guessed it—you.
A single slip-up in HR compliance can lead to penalties, legal claims, reputational damage, and a whole lot of stress. Wage theft, unfair dismissals, workplace harassment claims—these are not just headlines; they are real issues businesses face every day.
And we know that the regulators like the Fair Work Ombudsman are paying close attention.
So, what exactly do you need to be across in 2025? I am going to share my top 3 areas that I think should be focused on and then talk about a few other topics which have been causing some issues for our clients.
1. Wage Theft Legislation
Let’s start with a big one—wage theft. This is no longer just an administrative slip-up; it is now a criminal offence in Australia. That means if employees are underpaid, whether it is because of incorrect award interpretation, missed overtime, or misclassifying roles, or for any other reason, the consequences can be severe. We are talking hefty fines, and in some cases, even jail time for those responsible.
It is not just about back-paying what is owed. Businesses, and in some cases, individuals like directors, HR managers or payroll officers, can be held personally accountable. So, if you are thinking, ‘It was just a small mistake’, I would say, think again. Getting payroll right is not just a compliance issue; it is a legal and ethical necessity. And with regulators cracking down harder than ever, now is the time to audit your payroll practices and make sure everything is above board.
My suggested action plan in this area is: Audit your payroll, and preferably this should be done by an external business so you have a fresh set of eyes, check award classifications, and ensure you are paying employees correctly. If you do find errors, I would suggest seeking advice so you can ensure your rectification process is adequate.
2. Psychosocial Hazards—Mental Health Is a Workplace Risk
As many of our clients and listeners are aware, at Effective Workplace Solutions, we don’t play in the Workplace Health and Safety space. However, HR and Work Health and Safety tend to have a few crossovers and one of those areas of crossover is Psychosocial Hazards. As you are probably well aware, the days of thinking WHS only applies to physical risks are well and truly over.
Under the new WHS laws, businesses now have a legal duty to manage psychosocial hazards—things like stress, burnout, bullying, harassment, workplace trauma, and even poor job design. These are not just ‘HR issues’—they are recognised workplace health and safety risks that can have serious consequences, not only for employees’ wellbeing but also for businesses that fail to address them.
So, what does this actually mean for employers? Well, just like with physical risks, businesses must take a proactive approach. It is no longer enough to just react when issues arise. Employers need to:
- Identify potential psychosocial hazards—things like excessive workloads, unrealistic deadlines, or toxic workplace cultures.
- Assess the risks—looking at how these issues impact employees and the workplace overall.
- Implement controls—such as better workload management, clearer policies on bullying and harassment, and support systems for employees facing stress or trauma.
- Monitor and review—because workplace risks are always changing, and what works today might not work six months from now.
And we know the regulators are taking this very seriously. Businesses that fail to manage these risks properly can face penalties, and in extreme cases, individual directors and managers could be held personally liable.
So, if your WHS policies still focus only on physical safety, now is the time to rethink your approach.
The key takeaways here would be: review your policies and approach to this issue, and consider sourcing training for both managers and employees, and support structures that encourage a culture of addressing psychosocial hazards before they escalate.
3. Respect@Work Amendments—Harassment is a Compliance Issue
Workplace bullying, harassment, and sexual harassment are no longer just HR issues—they are now clear compliance obligations. The Respect@Work laws make it crystal clear that businesses must take proactive steps to prevent these behaviours, not just respond when a complaint is made. Failing to do so is not just bad for workplace culture,it can lead to serious legal consequences.
More broadly, compliance with these laws is not just about avoiding penalties—it is about building a workplace where people can do their jobs without fear of bullying or harassment. When businesses take this seriously, they reduce risks, strengthen their culture, and improve employee retention. And at the end of the day, a workplace that prioritises respect and fairness is always going to be more successful in the long run.
For businesses in Queensland, this means implementing a Sexual Harassment Prevention Plan. It is no longer enough to have a policy sitting in a drawer. Employers need to actively assess risks, educate staff, and take reasonable measures to stop harassment before it happens. This is about creating safe, respectful workplaces where everyone knows what is expected and feels protected.
The action items for this area of compliance include: Review your workplace policies, review your training matrix and ensure that your business trains managers on these topics and how to deal with a complaint if they receive one, and your employees are training on their responsibilities in relation to these laws, work on prioritising a culture that encourages respectful behaviours, and ensure there are clear reporting mechanisms in place.
Alright, in addition to talking about those compliance issues today, I wanted to touch on a couple of other hot topics that we have seen coming across our desks in the past few months.
The first one is procedural fairness.
So, let’s talk briefly about how you handle issues when they pop up. Now this could be misconduct, a complaint, or even a termination.
Procedural fairness is actually a requirement under the Fair Work Act 2009. While the term “procedural fairness” is not explicitly stated in the Act, the principles are embedded in how dismissals and disciplinary actions should be handled. The Fair Work Act requires employers to follow fair and reasonable procedures when dismissing an employee, and procedural fairness is a key part of that. This means that any actions undertaken prior to termination need to follow this process as well.
Under the Act, for a dismissal to be considered “fair”, employers must follow a proper process, which includes:
1. Providing the employee with a clear understanding of the issue, for example misconduct or poor performance.
2. Giving the employee an opportunity to respond to the allegations before any decisions are made.
3. Conducting a proper investigation into the situation and considering the employee’s response.
4. Ensuring the decision is based on facts and not influenced by bias or preconceived notions.
What does that actually mean? Well, it’s pretty simple:
First, you need to give the employee a chance to respond to any allegations. You can’t make decisions without understanding the whole situation.
Secondly, conduct a proper investigation if one is warranted. You’ve got to look into the matter and not make assumptions or only look at one or two pieces of information.
Thirdly, offer your employee the option to bring a support person to meetings when appropriate.
And last but not least, make sure decisions aren’t rushed or biased. Take your time, weigh everything up, and make sure any decision is based on solid ground.
So if you are failing to follow these steps, well, it’s probably not going to end well, and trust me, that’s a whole lot of stress you do not want to deal with.
Now, while procedural fairness is crucial in handling workplace issues, there’s one more thing that can make or break your case and thats record keeping. You’ve got to have a paper trail that shows you followed the right process every step of the way. From documenting meetings and investigations to keeping track of communications, proper records are essential. Without them, all your hard work in ensuring procedural fairness could be hard to prove down the track.
Good records are your best defence in any dispute.
You should be keeping records of:
📌 Pay slips and timesheets
📌 Performance reviews and warnings
📌 Incident reports and complaints
📌 Contracts and employment agreements
So, another takeaway today would be to review your record-keeping processes now to make sure you are compliant.
And my final thoughts for today are around building a culture of Compliance.
At the end of the day, compliance is not just a checklist—it is a culture.
When managers: Understand the rules, Follow fair and consistent processes, Foster a respectful and safe workplace, and Keep clear records … then compliance becomes second nature.
Compliance is about more than avoiding penalties, it is the foundation of a healthy, productive, and legally secure workplace. I am a firm believer that a compliant workplace is a successful workplace. It is a place where employees are engaged, businesses avoid costly disputes, and managers can focus on growing the company instead of putting out fires. Managers play a critical role in compliance—so get informed, stay proactive, and when in doubt, seek expert advice.
Thank you for listening to another episode of HR to Go. If your business is based in Australia and you would like HR or employment law advice, visit our website ewsolutions.com.au.