A monthly update on Government workplace law changes, Fair Work Commission test cases and important decisions.

A valuable resource informing senior management 

• what you need to know as an employer, 

• what you need to act on, 

• and when. 

Please note this is a high-level summary review only. If you wish to discuss a particular workplace matter related to these changes, or are seeking more information, please do not hesitate to contact me. 

I suggest you scan read the following and read only those sections that apply to your business. Unfortunately, ‘Ignorance of the law is no excuse’ so it’s a good way to keep an eye on what’s happening.

Key items 

• Federal Election Workplace Relations Policy Summary 

• Restrictions on Restraint Clauses in Employment Contracts

• Payday Superannuation – Draft Legislation Released 

Kind Regards
Michael Schmidt
Hunter Employee Relations
M 0438 129 728
[email protected]

Hunter Employee Relations Services

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Upcoming Changes

Federal Election Workplace Relations Policy Summary

Given the proliferation of employee friendly workplace legal reforms over the last several years we’re hoping this does not continue into the future.  Employers are having a hard time keeping up! 

A quick summary from the major parties is outline below: 

Key points from Labor are as follows

• The adoption of the ACTU policy of uniform Long Service Leave entitlements – using the highest state entitlement as the baseline. 

• The changes to employment contract restraint clauses – see below

• Superannuation payment contributions made each pay cycle. 

• A national labour hire licencing scheme. 

• A potential prohibition on working ‘excessive hours’.  (Undefined) 

Key points from the Coalition are as follows:

• Reintroduction of the Australian Building and Construction Commission

• The introduction of federal racketeering laws focussed on illegal union activities. 

• Removal of the Right to Disconnect. 

• Replacing the definition of casual employment to the following: “real substance, practical reality and true nature of the employment relationship”.

Peter Dutton has indicated he will ban working from home arrangements in the federal public service. No mention has been made as to whether there is any intention to change workplace laws in the private sector giving employers greater ability to limit working from home arrangements or give employers the right to ask employees to return to their employer’s premises. 

I would expect that workplace relations will play a low-key policy role with both major parties seeking to keep the ‘target’ for attack as small as possible. 

Restrictions on Restraint Clauses in Employment Contracts

As announced in the budget the Federal Government intends to the amend the Fair Work Act 2009 to limit the enforcement of post-employment restraint clauses in employment contracts.

While detailed information does not appear to be available at this stage the changes will not affect restraints against post-employment interactions with former clients. It is likely to limit clauses where former employers are restricted from poaching colleagues from their prior employer.

The changes will affect new employment contracts entered into from 2027 and affect only contracts below the high-income threshold which currently stands at $175,000pa.

An employer’s main concern in these situations is where former employees poach clients they had previously had a working relationship with. The Courts will generally enforce such contract restraint clauses for a limited period of time. The Courts will not enforce open geographic or time base clauses which prevent a former employee from earning a living unless they move to a different city or state.

We’ll provide you with more information on the changes when they become available.

Employer action: While no immediate action is required as we do yet know the details of these changes, employers are urged to review their restraint clauses for key staff to maximise their compliance with current Court judgements.

Payday Superannuation – Draft Legislation Released

The Government has now released draft legislation that will require all employee superannuation payments to be made on the same day as wages are paid to the employee. Contributions will need to arrive in an employee’s superannuation account within 7 calendar days.

There are a number of exceptions including allowing extra time for new employees to be set up with the relevant superannuation account, out of cycle earnings and a number of exceptional circumstances such as natural disasters etc.

This change will commence 1 July 2026.

More information – ATO superannuation and Treasury Fact Sheet

Employer Action: This will affect all employers making the SGC Superannuation contributions on behalf of their employees.

Annual Wage Review 2024-2025

The Annual Wage Review is expected to be handed down during June 2025 with increases to Award wages commencing from early July 2025. Parties are currently making written submissions. The Fair Work Commission has published several studies largely focussed on employees paid at or close to the Award rate of pay. More information can be accessed here.

Employer Action: Employers will need to adjust employees paid on the Award rate to at least the new notified hourly wage rate from the prescribed date in July 2025. This will not affect employers who are paying above the new Award rate of pay.

Superannuation – 12% July 2025

From 1 July 2025 employer superannuation payments on behalf of employees will increaser to 12%. This is the last legislated change to the contribution percentage.

Employer Action: These changes will affect all employers making the SGC Superannuation contributions on behalf of their employees.

Portable Long Service Leave - NSW Community Sector

The Community Services Sector (Portable Long Service Leave Bill) (NSW) 2024, will commence on 1 July 2025. The Act allows employees to accrue Long Service Leave working across the sector and not just with one employer. Employees can now access 6.1 weeks long service leave after 7 years of service.

The definition of Community services include the following services – disability support, foster care, homelessness support, out of home care and youth support. The portable long service leave scheme applies to all positions of that employer. Employers will pay a levy based on wages and the employee will be paid from accumulated funds.

More information NSW Government Long Service Leave Corporation.

Employer Action: Employers in the Community Sector should check the details of the Act as it applies to them. The National Employment Standards refer to the applicable Long Service Leave Act operating at a state level. It applies to Award and non-Award employees.

Workplace Gender Equality Act 2012 - Amendment

This change affects employers with over 500 employees.

The Act was amended on 26 March 2025 and now requires employers with over 500 employees to select and achieve/make progress on equality targets. Employers must chose three equality target areas and will have three years to achieve or make progress on their selected targets.

Overview information – WEGA Media Release

What are the 6 Gender Equality Indicators / Targets

Employer Action: Action is only required where a business employs more than 500 employees.

Changes That Have Recently Commenced

New Model Terms for Enterprise Agreements

Following an extensive consultation process a Full Bench of the Fair Work Commission has handed down a decision on the new Model Terms for Enterprise Agreements on 20 February 2025. The decision covers the following model terms relating to Consultation, Flexibility and Disputes
Employers seeking copies of the Model Terms here

Employer Action: The model terms will operate for new enterprise agreements from 26 February 2025.

Casual Employment Changes  - Now Commenced for Small Employers

• Casual Definition 

• Casual Conversion 

• Information Statement 

The Fair Work Act 2009 has been changed to provide for a new casual definition based on a ‘firm advance commitment to continuing and indefinite work’.

Secondly the new casual conversion process allows employees to request conversion to permanent full time or part time employment. 

Employers must provide the Casual Employee Information Statement to all casual employees at specific points in time. 

Employer Action: The changes will apply to smaller employers from 26 February 2025.The changes commenced 26 August 2024 for larger employers. Further transition dates apply.

Please email Michael to request a copy of the Hunter ER - Casual Employment Employer Guidelines to be sent to you. 

Useful Information

Modern Awards List

Most employers will be aware of where to find the latest Modern Awards but just in case you’ve lost the link:

A Useful NSW Government SafeWork Website

Links to Codes of Practice, Hazards, Resource Library, Video and Webinar Library, Podcasts, and Newsletters etc
Check it out here

Wage Increase Data

The most recently released ABS data indicates wages growth of 0.7% in the December 2024 quarter resulting in a 3.2% increase over the previous year. This is a reduction from 3.6% from the previous reporting period. With inflation at 2.4% this indicates an (average) real wages increase of 0.8%.

CPI Data

In the 12 months to February 2025, the monthly CPI indicator rose 2.4 per cent, after holding steady at 2.5 per cent for the previous two months.

A bit of workplace humour…..

A bonus for those of you who have read this far!

• Yesterday I sent out a text to my colleagues saying’ “Hey, I lost my phone will you please call it?” 14 people called. I need to find a smarter workplace.
• I took a drug test for a job interview. They took a hair from my extensions. I start Monday.
• Ever been to one of those team bonding workshops where they ask, “what single item would you take with you to a deserted island” – no one ever says, “A boat!”
• My boss called me all mad asking “where are you?” I said “I’m here – you just can’t see me. I now identify as TRANSparent. My pronouns are who/where”
• Gen Z is amazing. I asked an intern to bring me 50 pieces of white paper and when she brought them in, they were warm. Turns out that, rather than count them, she set the copier to 50 and printed blank sheets. Genius!

Disclaimer
The above information articles are general in nature and do not constitute advice. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future. Should you require advice or guidance in relation to any of the above (or other employee relations topics) please contact Michael Schmidt to discuss your particular circumstances.