Workplace policies for 2026: what actually needs updating (and why it matters)

Workplace policies are a bit like smoke alarms.

Nobody wakes up excited to update them. They just sit there… until the day something goes wrong and suddenly everyone’s asking, “Hang on—what’s our process here?”

And lately? There’s been a lot going on. New obligations, shifting expectations, and a stack of changes that mean the old “downloaded template policy from 2019” isn’t doing anyone any favours.

Here’s the deal: if you’re an employer in Australia (and especially if you’ve got staff in Queensland), 2026 is a smart time to refresh your policies—not because it’s trendy, but because the legal risk is real. Underpayments. Privacy. Super changes. Flexible work. Right to disconnect. Harassment prevention as a WHS issue. It’s a lot.

This article is the plain-English guide to what’s changed, what policies to look at first, and what “good enough” looks like in practice (spoiler: it’s more than having a PDF on the intranet nobody reads).

Last updated: 4 February 2026

The biggest misconception: “Policies are just paperwork”

Lot of people treat policies like decoration. Something to show a regulator “if asked”. Or something HR wrote once and nobody touched again.

But policies are actually two things at once:

• A risk control tool (especially for WHS and psychosocial hazards now)
• A decision-making script when something goes pear-shaped

If the policy is vague, outdated, or not followed, it doesn’t just “not help”. It can actively make the business look sloppy.

And yes, that’s frustrating, because running a business already feels like juggling chainsaws some weeks.

Harassment isn’t just an HR problem anymore — it’s WHS too (especially in QLD)

This is one of the big shifts that caught employers out in 2025 and is still biting in 2026.

Sexual harassment and sex/gender-based harassment isn’t only an “employment law complaint” issue. It’s also a work health and safety issue. That changes how it’s managed.

In Queensland, the source points out two practical implications:

• if you’ve got an older harassment policy that doesn’t meet the early-2025 requirements, it should be replaced with a compliant one
• Queensland businesses need a Sexual Harassment and Sex or Gender‑based Harassment Prevention Plan, and staff need to be trained on it as part of WHS compliance

This is where “policy on file” isn’t enough. Prevention plans, training, reporting pathways, documentation. That’s the game now.

Flexible work requests: the 21‑day trap (and “generic reasons” don’t cut it)

Flexible work requests are another area where businesses are getting tripped up—not because they’re dodgy, but because they’re busy… and the timeframes are legal timeframes.

The source highlights a Fair Work Commission decision (Chandler v Westpac [2025] FWC 3115) and the kind of mistakes that are getting employers into trouble:

• not responding within 21 days (that’s a contravention)
• giving “broad” reasons for refusal that don’t amount to reasonable business grounds
• trying to patch it up later and assuming that fixes the breach
• not actually having a genuine discussion and individual consideration of the employee’s circumstances

You’d think “we replied eventually” would be fine. But apparently not.

Practical takeaway: if managers handle flexible work requests, they need a simple process and a calendar reminder. Not a vibes-based approach.

Annualised salaries and set-off clauses: this is still a live wire

If your business pays annualised salaries, this section matters. A lot.

The source refers to a Federal Court matter involving Woolworths/Coles group proceedings (2025 FCA 1092) and the lessons employers need to take away:

• set-off clauses need to be reviewed for compliance
• set-off applies to the relevant pay period; it can’t be used to paper over underpayments elsewhere
• terms need to be clearly communicated before acceptance
• record-keeping needs to meet the Fair Work Regulations requirements

In plain terms: “salary covers it” is not a magic shield. If payroll practices are casual, it gets expensive quickly.

Privacy updates for 2026: don’t leave this to the IT person

Privacy is one of those topics businesses avoid until a customer complains—or there’s a breach—and then it becomes urgent overnight.

The source notes changes to privacy laws for 2026 mean privacy policies need updating, and businesses covered by the Privacy Act should update:

• the Privacy Policy
• the Collection Notice
• internal training so staff actually follow the rules

It also flags potential AI-related compliance expectations in 2026—so it’s worth reviewing how the business uses AI tools with customer or employee data, and who’s accountable for it.

Worth noting: privacy compliance isn’t just about the website footer. It’s about how staff collect, store, share, and delete data day-to-day. Reception. Sales. HR. Marketing. Everyone.

PayDay Super from 1 July 2026: payroll processes need a proper refresh

This one is simple to say and painful to implement.

PayDay Super brings significant changes from 1 July 2026 for how super is paid, so payroll processes need to be ready ahead of time.

So if payroll is currently running “every month” and super gets handled in a batch, processes may need to change. And “we’ll do it later” tends to become “we forgot, and now there’s a compliance problem”.

This is a policy and process issue: payroll procedures, finance sign-off, and clear internal accountability.

Right to disconnect: it’s not just “stop emailing at 10pm”

Right to disconnect laws are now in the mix as well, including for small businesses (15 employees or fewer). Sounds simple, then turns messy in practice.

Because it’s not only about after-hours emails. It’s also about:

• expectations set by managers
• “urgent” becoming the default
• staff feeling they can’t say no
• clients who demand instant replies

If your policy says “people can disconnect” but your culture says “answer now”, guess which one wins?

Pro tip: write the policy in plain English and include examples. People follow examples. They ignore abstract statements.

Wage theft being criminal (in some circumstances): managers need to know the basics

This is one of those changes that makes employers nervous—and it should, a little.

The source notes wage theft is now criminal in some circumstances. That doesn’t mean every payroll mistake becomes a police matter. But it does mean businesses need to take underpayment risks seriously and fix them fast.

Practical takeaway: if payroll is complicated (awards, penalties, loadings, allowances), don’t “set and forget”. Audit and document.

Casual employment changes: expect more conversion requests

The source also notes changes to casual employment mean employees can request conversion to permanent roles subject to certain requirements.

This tends to create two problems:

• employers saying no without properly assessing the request
• employers not documenting the reasons clearly

If casuals are a meaningful part of the workforce, conversion request handling needs to be part of the policy set—not an ad hoc manager decision.

So what policies should be updated first? (A realistic order)

If everything needs updating, it’s easy to update nothing. So here’s a practical order that reduces risk fastest:

1. Sexual harassment / sex- or gender-based harassment policy + prevention plan (QLD focus)
2. Flexible work request procedure (including the 21-day response workflow)
3. Payroll/annualised salary and set-off clause review + record-keeping policy
4. Privacy policy + collection notices + internal handling procedures
5. PayDay Super payroll procedures (ahead of 1 July 2026)
6. Right to disconnect policy + manager guidance
7. Casual conversion request process
8. General “code of conduct / investigations / discipline” refresh so the whole system hangs together

Not glamorous. But practical.

What “good” looks like in 2026 (hint: it’s not a binder)

A decent policy suite in 2026 usually has:

• plain language (people should actually understand it)
• version control (dates, updates, owner)
• training records (so the business can show it wasn’t just “uploaded”)
• consistent use (managers applying the process the same way)
• a real reporting pathway (especially for harassment/psychosocial issues)
• alignment with actual practice (don’t write a policy nobody follows)

This always surprises people: a policy that’s too strict can backfire if the business never follows it. Better to have a policy that matches reality and improves it, rather than a “perfect” policy that’s fiction.

FAQ: questions employers ask when policy updates come up

Do policies really need replacing, or can they just be tweaked?

Sometimes a tweak is fine. But if the policy is built on an older legal framework (or it’s inconsistent with what the law expects now), replacing is safer and often quicker than endless patching.

If a policy exists but nobody’s trained on it, does it still help?

Not much. A policy with no training and no consistent use is easy to attack in a dispute: “it was on paper but not in practice.”

Are these changes only relevant to big employers?

No. Several changes and obligations hit small businesses too (and small businesses often have less buffer when something goes wrong).

What’s the fastest way to reduce legal risk right now?

Get the high-risk policies current (harassment/WHS, flexible work, payroll/records), train managers on the “how”, and document that training.

When should PayDay Super prep start?

Now. Waiting until June 2026 is how payroll teams end up doing rushed changes under pressure.

Neutral next step

If workplace policies haven’t been reviewed since pre‑2024, do a simple audit: list what exists, what’s outdated, and who owns each policy. Then update the high-risk ones first and train the people who actually make decisions day-to-day.

If the business wants the fastest “safe” path without guesswork, a legal expert can review the policy suite and tell you what needs replacing versus what can be tweaked.

Legal disclaimer

This article is general information only and does not constitute legal advice. It does not take into account individual circumstances. For advice about your workplace, obtain advice from a qualified Australian lawyer.