Hunter Employee Relations Review August 2025

The One Minute Summary

The Government has initiated legislation to change the Fair Work Act 2009 to protect penalty rates and overtime into Modern Awards.
The Fair Work Commission has set up an Expert Panel to review all aspects of part-time conditions in 11 Modern Awards.
The Fair Work Commission has set up an Expert Panel to review degree-qualified professional classifications in specific modern awards. The review will examine undervaluation with specific attention to gender undervaluation.
A Competition Task Force in Treasury has recently opened a consultation period which gives interested parties the opportunity to share their views on banning non-compete and other clauses in employment contracts which restrict workers moving jobs.
The Fair Work Ombudsman has launched an inquiry into compliance with workplace laws, including Awards, in the disability support services sector. Between 2020 and 2024 the sector paid $68m in back payments to employees.
At the upcoming Government’s Economic Roundtable the ACTU will be seeking a ‘pro-worker agenda’ in the adoption of AI to ensure it is safe and deployed in a way that gives workers a stake in the gains while being transparent and fair.
Employees covered by union negotiated enterprise agreements received an average annualised increase of 3.8 percent while employees covered by non-union enterprise agreements received an average increase of 3.2 percent. Current inflation rate is 2.4 percent. (March 2024 - March 2025)

More information on these key changes is available below

What you need to know, what you need to act on, and when.

The Hunter Employee Relations Monthly Review is a valuable resource informing senior management on Government workplace law changes, Fair Work Commission test cases and important decisions. It is published at the start of each month.

Government Changes Fair Work Act to ‘Protect’ Penalty Rates & Overtime

The Government has followed through with a key election pledge to lock penalty and overtime rates into the Fair Work Act 2009.

It has recently introduced the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025 to Parliament. The legislation sets provisions into law and removes the ability of the Fair Work Commission to entertain applications to vary penalty and overtime rates in Modern Awards. This change will affect Enterprise Agreements through the BOOT test.

We await the final legislation, but it appears the Bill is not well drafted while introducing more rigidity and complexity into the Fair Work Act.

The Government election pledge followed an employer application to amend the General Retail Industry Award earlier this year.

The Modern Awards were introduced in 2010 to replace the old very prescriptive Award system and consolidate similar industry Awards. Since that time the Modern Awards have undergone multiple variations making them far more prescriptive and removing workplace flexibilities – this is just the latest change.

Fair Work Commission - Part-time Award Provisions Review

The Fair Work Commission has set up an Expert Panel to examine part-time employment conditions in 11 Modern Awards including the SCHADS Award, Clerks Private Sector Award and the Manufacturing and Associated Industries and Occupations Award.

The matters covered by the review will include the number of hours to be worked, the days upon which work is to be performed, the start and finish times of work, prescribed daily and weekly minimum hours of work, as well as the circumstances in which working hours may be altered and additional hours worked. The intention is to create a standard model clause across Awards.

The Expert Panel has published a provisional scope of issues for determination in this matter and is seeking initial submissions on this list from interested parties by 22 August 2025.

A Directions hearing has been set for 3 September to discuss how the case will proceed.

Any outcome from a review of these 11 Modern Awards is likely to flow on to other Modern Awards on completion of this initial phase.

Fair Work Commission Degree-Qualified Professional Classifications Review

The Fair Work Commission has formed an Expert Panel and commenced a major new review focussing on work value in degree-qualified professional classifications in specific modern awards. The review will examine undervaluation with specific attention to gender undervaluation.

The case will consider whether classifications in modern awards that require, as a minimum, an undergraduate university degree are aligned with the C1(a) benchmark rate.

The Commission has identified that 69.7% of modern Award-reliant professionals are female. This surpasses the 60% threshold identified for feminised occupations in the Priority Awards Review

At this stage the Expert panel is inviting initial submissions on the list of professional classifications and awards to be covered which it has published. Submissions are due by 22 August 2025. Twenty-two Awards will be reviewed by the expert panel.

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.

A Competition Task Force in Treasury has recently opened a consultation period which gives interested parties the opportunity to share their views on banning non-compete and other clauses which restrict workers moving jobs.

Feedback is being sought on non-compete clauses for low and middle income earners, no-poach agreements and wage-fixing agreements. It is also asking whether reforms are required for similar clauses for high income earners, non-solicitation clauses and employment contract restrictions on employees having multiple jobs.

Submissions will be considered in finalising Government policy on this issue.

The changes are expected to affect new employment contracts entered into from 2027.

Fair Work Ombudsman Disability Support Services Inquiry

$68M Back Payments 2020-2024

The Fair Work Ombudsman has launched an inquiry into compliance with workplace laws, including Awards, in the disability support services sector.

The FWO’s investigations in the sector have previously found widespread, sometimes large-scale non-compliance issues.

Between January 2020 and December 2024, the Ombudsman reported responding to 75,000 enquiries and receiving in excess of 2500 anonymous reports in relation to this sector. It has also completed more than 3000 in-depth matters arising from requests for assistance and self-reported compliance. Back payments in this sector were close to $68 million over this period.

The Ombudsman that in the initial period it is initiating this review as a positive approach to this sector to identify and rectify major issues.

Gender Undervaluation Award Variations

Submissions and Conferences Underway to determine new classification structures and wage increases.

In April the Expert Fair Work Commission Panel has handed down an extensive decision in relation to the Gender Undervaluation Test Case finding that the classifications in the test case Awards have been the subject of gender-based undervaluation.

The Commission closely examined the following Awards to determine whether the work undertaken by employees (predominantly female) was undervalued.

Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020
Children’s Services Award 2010
Health Professionals and Support Services Award 2020
Pharmacy Industry Award 2020
Social, Community, Home Care and Disability Services Industry Award

The parties to the proceedings are now providing submissions to the Commission Expert Panel to determine amendments to the above Award classification structures likely to result in wages increases spaced over a period of time.

On 18 July the Commission issued Directions in relation to the above listed Awards covering multiple submission dates and further hearings/conferences over the coming months. Please contact Michael if you wish to obtain more information on this.

ACTU Seeking Tough Regulations to Guide the Future Roll Out of AI

At the upcoming Government’s Economic Roundtable unions will be seeking a ‘pro-worker agenda’ in the adoption of AI to ensure it is safe and deployed in a way that gives workers a stake in the gains while being transparent and fair.

The unions will be seeking a new set of mandatory enforceable agreements that would compel employers to consult with their staff before AI technologies can be introduced in a workplace. Such agreements will be called ‘AI Implementation Agreements’ and will include guarantees around job security, skills development and retraining, transparency over technology use and data collection and use protections.

The above would be enforced through a ‘National AI Authority’ and a national ‘Artificial Intelligence Act’ to ensure laws keep track with the pace of technology.

Given the Government’s propensity to follow through in ACTU driven policy initiatives over the last several years I would not be surprised if the ACTU initiative leads to more concrete Government action later in the year. This could include legislated changes to the Fair Work Act. This won’t stop the introduction of AI but put in place new hurdles for employers to jump over.

Working from Home Model Term – Clerks Private Sector Award 2020

This matter concerns the insertion of a working from home clause in the Clerks Private Sector Award to support employers and employees making a workable arrangement.

The Commission has requested parties to provide proposed Award variations and submissions buy 18 July 2025. Other parties may respond by 15 August. A Directions hearing has been scheduled for 3 September before Justice Hatcher, Commission President. There is no indication at this stage of when the changes will take affect in this Award. Any changes to the Clerical Award are likely to flow on to other Awards when completed.

Fair Work Ombudsman Review of Small Business Definition

Following a recent review the Fair Work Ombudsman has decided not to change the definition of a small business currently defined in Section 23 of the Fair Work Act 2009. A small business is defined as an employer that hires fewer than 15 employees.

Employers had been seeking to increase the number above 15 arguing to many small businesses were being caught up in legislation designed for larger employers and found it hard to comply with limited resources.

Changes Which Have Recently Commenced

Annual Wage Review 2025

In June the Fair Work Commission Expert Panel awarded a 3.5% wage increase in the 2025 Annual Wage Review.

This increase is now payable at the Award rate. Employers need to review lower paid employees to ensure that they are paid at least at the Award rate of pay. Employers can absorb the 3.5% into any over Award payments.

To check the new minimum wage rates and changes to allowances in your Award please follow this link to the applicable Award.

Alternatively, these links from the Fair Work Ombudsman are also very helpful. Pay and Conditions Tool. Pay Guides for Modern Awards.

Superannuation – 12% - Commencing 1 July 2025

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

NSW Community Sector Portable Long Service Leave – Commenced 1 July

The Community Services Sector (Portable Long Service Leave Bill) (NSW) 2024, commenced 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.

More information NSW Government Long Service Leave Corporation.

Government Funded Paid Parental Leave & Superannuation Payments

From 1 July the Government funded paid parental scheme has increased to 42 weeks. This is part of the plan to progressively increase the paid scheme to 26 weeks from July 2026 providing $24,000 in support following the birth or adoption of a child. More information.

From 1 July 2025 the ATO will make a 12% superannuation to someone who is being paid the Government funded paid parental leave. This will be paid at the end of the 2025-206 financial year.

New Statutory Tort of Privacy Under the Privacy Act 1988

Employers must protection their employee’s private information.

Employees now have access to take legal action under Tort law against their employer for serious breaches of privacy. Under this tort an employee’s privacy can be breached by misusing private information that relates to the individual or intruding into their private space – where there was a reasonable expectation of privacy in all the circumstances. More information please check the July Monthly Review.

Changes - Pending / Slow Progress

More information will be provided on these items in upcoming Employee Relations Updates if important progress is made.

Junior Rates Review

The application seeks to remove 18 – 21-year-old wage rates and class them as adults receiving adult wage rates. (General Retail Industry Award 2020, Fast Food Industry Award 2020, Pharmacy Industry Award 2020). Seventeen days of hearings have been scheduled for October and November 2025 to take further evidence.

ACTU Reproductive Health Leave Campaign

The ACTU has initiated a campaign to amend the National Employment Standards to provide for 10 days paid leave to allow employees to have time off and flexible work arrangements to deal with a range of reproductive health issues. No further information has been released for some months.

Payday Superannuation

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. This change will commence 1 July 2026.

Useful Information

Wage Increase Data

The seasonally adjusted wage price index increase by 0.9% over the March quarter. This equates to a 12 month increase of 3.4%. The largest industry contributors to the quarterly wages growth were healthcare and social assistance (+1.4%) and Education and training (+1.3%). Wages for employees on enterprise agreements rose by 3.8% over the year to March 2025. ABS data

Enterprise Agreement Increase Data

The latest wage data released by the Department of Employment and Workplace Relations at the end of June reveals the following about enterprise agreement increases:

Employees covered by enterprise agreements has increased from 2.14 million in March 2024 to 2.67 million in March 2025.

Employees covered by union negotiated enterprise agreements received an average annualised increase of 3.8 percent while employees covered by non-union enterprise agreements received an average increase of 3.2 percent. Current inflation rate is 2.4 percent.

CPI Data

CPI data released by the ABS shows an annual rise of 2.1% in the 12 months to May 2025.

The annual CPI rose 2.4% in the year to the March quarter 2025.

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 here it is.

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

A bit of workplace humour…..

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

“You all worked really hard this year, I’m giving you all a cheque for $2,000. If you work the same next year, I’ll sign them”.

Tell me, how many people work in your company? About half!

Whatever your speech lacked in content it made up for in length!

I had a nightmare of a day, the computers went down and everything had to be done manually. It took me ten minutes just to shuffle the cards for solitaire.

My interviewer told me my wage would increase to $2,500 per month after six months…I told him I’d start then.

Nothing ruins a Friday more than realizing it’s actually Tuesday.

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.

Kind Regards
Michael Schmidt
M 0438 129 728
[email protected]
www.hunteremployeerelations.com.au