Some key numbers:

• 43% of employees believe they were underpaid within the last year
• 35% are unhappy or indifferent about their current job
• 26% say their employer doesn't have a Right to Disconnect policy

Workplace challenges—such as delayed payments, limited flexibility, and weak employee support systems—continue to affect many workers in Australia, widening the gap between employee expectations and employer practices, revealed a new report from workforce management platform Rippling. 

According to the report, at least 43% of employees are of the view that they have been deliberately or accidentally underpaid in the past year, eroding trust between employers and employees. Furthermore, at least 35% of employees were dissatisfied or neutral about their current job, citing poor communication, lack of growth, and insufficient work-life balance, it said. And more than a quarter of Australians work at an organisation with no formal policy ensuring the Right to Disconnect, despite it becoming law last year, the report pointed out. 

“Australian employees will no longer tolerate the basics – like timely pay – being mishandled. From wage theft to incomplete Right to Disconnect policies, businesses risk losing talent if they don’t address these fundamentals. At the same time, closing the employee expectation gap in 2025 means creating workplaces that offer real flexibility, meaningful growth, and well-being beyond token perks, all while connecting individual roles to a broader business purpose,” said Matt Loop, VP and Head of Asia at Rippling. 

This shift underscores a great workplace realignment, in which modern systems and employee-centric policies have become central to staying competitive in 2025, said the Workforce Dynamic Report 2025, based on a survey of 1,000 employees.

“The good news is that by automating manual processes, clarifying after-hours expectations, and supporting employees holistically, employers can strike the right balance, meeting key demands without compromising on productivity or profitability. As economic and regulatory pressures persist, an agile, employee-centric approach may be the key to attracting and retaining high-caliber talent,” added Loop. 

Wage Theft Challenges Trust

Despite becoming a criminal offence in January 2025, wage theft continues to impact nearly half of Australia’s workforce. Over 40% of employees report being underpaid, accidentally or otherwise, within the past year. This represents a major issue, with delayed remuneration having a significant knock-on effect on employees.

Moreover, “women and younger employees, especially Gen Z, are hit hardest by delayed or missing wages. Women are 29% less likely to be able to pay their bills on time, compounding existing caregiving and pay-gap pressures. Wage theft is also more commonly reported among senior roles (61% of C-level executives), but frontline staff suffer more immediate consequences due to smaller financial buffers,” revealed the report. 

Flexibility Gap

It’s been more than six months since Australia’s Right to Disconnect law took effect, yet 26% of surveyed employees say their workplace has no clear policy guaranteeing off-hours protection. “With no formal cases having been lodged with the Fair Work Commission, many workers likely suspect retaliation if they speak up, or they simply don’t know how to raise concerns,” it said.

Beyond after-hours boundaries, employees also have evolving expectations for workplace flexibility and wellbeing. At least “34% would reconsider joining a company lacking hybrid options, and 42% if they expected attendance in the office five days per week. About 45% would reconsider if they didn’t prioritise work-life balance and 53% place family-oriented benefits (flexible hours, parental leave) above all else, with some citing burnout risks when boundaries aren’t respected,” it said.

Among those who are satisfied with their current workplace, the top factors contributing to a positive experience are work-life balance (48%), a supportive team environment (43%) and competitive pay and benefits (33%). Aligning flexible work structures with operational needs can boost employee satisfaction while preserving productivity, the report found.

Employee Experience Gap

Rippling’s report found a distinct discontent among Australian workers, with 35% of employees unhappy or neutral about their role. This gap is showing up across culture, recognition, support systems, and basic tools, driving the great workplace realignment. 

According to the report, at least “15% rate their employer’s mental health support as poor, and another 15% say no formal programmes exist at all; 32% want more frequent performance feedback, yet almost one in five (19%) receive feedback less than once a year, and nearly 90% say recognition boosts motivation; 36% wouldn’t join a company with outdated systems that slow them down.”

Elevating mental health resources, feedback loops, and tech capabilities can help organisations combat disengagement and boost productivity. “When employees see a clear path for growth and feel supported in day-to-day operations, they’re more likely to stay and perform at their best,” suggested the report.

Status of Diversity, Equity & Inclusion 

Employees remain vocal about diversity, equity, and inclusion (DEI), with 39% saying they would leave an employer that fails to prioritise it. About 55% of Gen Z workers said they would leave an employer with no DEI policies in place—more than any other generation.

Men are 56% more likely than women to remain at a company that neglects DEI, reflecting differing stakes and lived experiences.

Employees increasingly expect tangible change, not just statements or tick-box exercises. “Demonstrating measurable progress - like visible mentorship programmes or balanced leadership teams - can strengthen trust and reinforce a sense of belonging,” recommended the report.

Bonus data: What's improved and what hasn't, according to ABS

The good:

• At least 13.1% of employees (1.6 million) were trade union members in their main job, an increase from the 12.5% recorded in August 2022.
• Median employee earnings in the main job was $1,396 per week, up $96 (7.4%) since August 2023.
• Median hourly earnings in the main job was $40.00 per hour, up $0.30 since August 2023.

The not so good:

• About 2.6 million employees did not have paid leave entitlements (22% of employees, and 18% of all employed).
• At least 36% of employed people usually worked from home - down from 37% in August 2023.
• There were 194 disputes and a total of 139,100 working days lost in 2024.