If your farm hasn’t reviewed its HR setup before 1 July, now’s the time to check your HR compliance. Between award rate increases, superannuation changes, seasonal workers, and flat rate arrangements, keeping up with all your obligations is essential and, gaps in compliance may cost you in backpay, penalties, or even Fair Work claims.
1. Apply the New Minimum Pay Rates
The Fair Work Commission has increased both the National Minimum Wage and Award minimum wages by 3.5%, effective 1 July 2025.
If you have workers covered by the Pastoral Award 2020 or another Modern Award:
- Where required, update your pay rates to reflect the changes.
- Don’t rely on past rates or verbal agreements.
If you use flat rates or annual salaries, you must ensure these still meet all Award entitlements such as:
- Overtime,
- Weekend and public holiday penalties,
- Allowances (e.g. for shearing, leading hands, or special duties),
- Leave loading.
You may need a Better Off Overall Test (BOOT) to confirm your current pay arrangements are still lawful.
2. Update Superannuation Contributions to 12%
The Superannuation Guarantee rate increased from 11.5% to 12% on 1 July 2025.
If you haven’t already:
- Update your payroll system or manual payroll process to reflect the new rate.
- If you include superannuation in an employee’s total pay package, make sure you recalculate their base wage to reflect the new 12% rate.
- Review superannuation payments for contractors, some may be entitled to superannuation even if they have an ABN.
Farm employers are legally responsible for ensuring superannuation is paid correctly and on time. Missing or underpaying superannuation can lead to penalties and interest charges.
3. Review and Update Contracts for Farm Workers
Every employee, whether casual, full-time or part-time, should have a written employment contract. This includes seasonal workers and family members working on the farm.
Your contracts should include:
- Employment type (casual, part-time, full-time),
- Applicable award and classification,
- Pay structure (hourly rate, flat rate, salary),
- Key terms like hours, leave, termination, and notice.
If you’re unsure whether someone is truly a contractor or should be an employee, it’s worth reviewing now. The laws changed in 2024 and misclassifying a worker can be costly.
4. Check and Correct Leave Records
Leave records must be kept for all permanent employees.
Make sure:
- Leave balances are accurately recorded.
- Accruals are correct in your payroll or spreadsheets.
- You’re tracking long service leave entitlements.
5. Update Workplace Policies and Inductions
Having clear policies and induction processes is essential for safety and legal protection.
Review:
- Your code of conduct and farm rules.
- Safety and WHS policies.
- Drug and alcohol policies.
- Procedures for bullying, disputes, or misconduct.
- Onboarding procedures for new or returning workers.
Make sure all staff, including casuals and family, are aware of their rights and obligations.
6. Complete Outstanding Probation and Performance Reviews
If you brought new workers on during seeding or earlier in the year, don’t forget:
- Probation reviews should be done before the period ends.
- If a worker isn’t suitable, a formal process protects you from unfair dismissal claims.
7. Verify Employee Details and Right to Work
Take the opportunity to check your employee records and confirm you have the required documentation:
- Tax File Numbers.
- Superannuation fund choice forms.
- Emergency contact information.
- Visa evidence for workers on temporary or restricted visas.
- Signed contracts and policy acknowledgments.
Missing records is one of the most common issues found during Fair Work audits. Keeping complete, up-to-date records isn’t just best practice, it’s legally required.
8. Plan Ahead for Your Workforce
Use July as a time to step back and think about:
- Who you’ll need during the next busy season.
- What contracts, pay rates or training those workers will need.
- Whether you need external help managing HR compliance.
Don’t Risk Non-Compliance
Farms aren’t exempt from employment laws, and failing to meet your obligations could mean penalties, claims, or reputational damage. At ProcessWorx, we are committed to helping farms strengthen their HR compliance. If you’d like to learn how ProcessWorx can assist with Human Resources or Work Health & Safety, please contact us on 08 9316 9896 or enquiries@processworx.com.au. Also watch an Introduction to ProcessWorx.
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