Hunter Employee Relations Review – August 2026

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

The following is a quick user-friendly update for employers on Government legislative changes and Fair Work Commission test cases. I’ll be up front – this is not exciting reading! I recommend you scan read it to see if any items affect your business and respond accordingly. Consider it a necessary evil!

Fair Work Act 2009 Amendments

The Workplace Relations Legislation Amendment (Building Cooperative Workplaces No. 1) Act 2026 received Royal Assent on 6 July 2026. The main purpose of the Act is to make a number of changes to the Fair Work Act 2009.

Most of the changes do not affect employers on a day to day basis but are related to updating Fair Work Commission process and Enterprise Bargaining rules.

The Fair Work Commission workload has increased substantially – much of it due to Unfair Dismissal and General Protections applications by former employees against their employers. One area being streamlined is determining whether a worker has been dismissed or whether they have resigned – before dealing with the facts of the matter. Other changes allow matters to be determined based on written submissions rather than through hearings.

Award Wage Rate Increase - 1 July 2026

In case you have missed it Award wage rates and National Minimum Wage were increased by 4.75% effective from 1 July 2026. Please check

Does an Award apply to your employees?
Are they paid above the applicable Award rate?
If no Award applies are they paid at or above the National Minimum Wage?

From 1 July 2026, following the Annual Wage Review, the National Minimum wage increased to $26.44 per hour - $1004.90 per 38 hour week.

Payday Superannuation Reminder

Employers are now required to make superannuation payments to their employee’s accounts within 7 days of the employee receiving their wages/salary for that payment period. More info

High Income Threshold Increases to $190k

From 1 July 2026, following the Annual Wage Review increase, the high income threshold has increased to $190,000 annual earnings. The key purpose of this threshold is that employees earning in excess of this amount are excluded from unfair dismissal rights under the Fair Work Act. There are a range of rules about what is included or excluded from the $190,000 earnings.

Maximum Fine for Breach of Award or National Employment Standard

Following the Annual Wage Review, the Fair Work Act penalty units have increased to $364 per unit. This means the maximum fine for a breach of an Award or the NES has increased to $546,000 – or $5,460,000 for serious offences.

Paid Parental Leave – Government Scheme

From 1 July 2026, the Government funded paid parental leave scheme has increased the access to paid parental leave from 120 days to 130 days. Changes apply to children born on or after 1 July. More info

Fair Work Information Statement – Updated

Employers are reminded that all new employees must receive the latest Fair Work Information Statement. The statement has recently been amended. Access latest statement here.

New Specialist Federal Industrial Court

The Government has announced it will establish a separate Fair Work Court in 2027. Currently all Fair Work Act matters are dealt with by the Federal Court and Federal Circuit and Family Court of Australia (the Federal Court).

Given the substantial increases in Fair Work Act applications progressing to the Federal Court system the timeframe from application to hearing and decisions being issued has blown out significantly – sometimes to between 18 to 24 months.

The Government has stated that the new Court should be more accessible and able to resolve matters in a quicker and simpler manner.

The Fair Work Court will undertake all hearings in relation to underpayments claims as well as all current matters, such as General Protections claims.

The Government has indicated it will undertake consultation on the design and structure of the Fair Work Court.

One area of employer concern is that the current proliferation of ‘no win – no fee’ solicitor’s claims against employers will increase. Employers, are given the choice of settle for a significant compensation amount or the employee will take the matter to the Federal Court. The current expense and delays tend to inhibit such claims.

Casual Loading Does Not Remove Long Service Leave Entitlement – NSW

A recent decision handed down in the Industrial Court of New South Wales confirms that the casual loading (even if greater than the required 25%) does not replace an employee’s entitlement to long service leave under the NSW Act. The employer had inserted a clause in their pay slip stating the loading covers all forms of leave. This was found to be invalid.

Employees may be entitled to Long Service Leave both as a National Employment Standard entitlement and as an state based legal entitlement. The NES references the Long Service Leave Act operable in a state where the employees is working.

Take Care Using AI for Employment Law Advice

Employers need to be careful when using artificial intelligence for advice on employment law. It makes errors or is incomplete.

A small business client recently asked AI for options to terminate an employee. AI told them that they could summarily terminate the employee or make them redundant.

What AI did not mention in providing this advice was:

Was summary dismissal justified for this misconduct? No
The legal requirement to consult when making an employee redundant. Breach of Fair Work Act – even for small businesses.
The fact that disciplinary action had recently taken place. Making an employee redundant after initiating disciplinary process is likely to result in a non-genuine redundancy if challenged in unfair dismissal proceedings.

Reminder – Keep Accurate Time & Wages Records

Small business employers are reminded of the Fair Work Act legal requirement to keep time worked records. This should include all starting and finishing times of ordinary hours and overtime worked.

Records must be kept for at least 7 years although it is recommended that they be kept much longer especially relating to the accrual of long services leave and when long service leave was actually taken by an employee.

If an ex/employee claims an entitlement the onus is on the employer to clarify their entitlement. Good records are the only option.

When a business is bought/sold employers should seek advice on their obligations in relation to entitlements transferring to the new employer.

WHS Codes of Practice Now Mandatory Compliance - NSW

Employers are reminded that from 1 July 2026 New South Wales WHS Codes of Practice must be followed in all NSW workplaces.

Section 26A of the Work Health and Safety Act 2011 (NSW) requires an employer to either comply with an approved Code of Practice OR manage workplaces hazards and risks in a way that may be different to the relevant Code BUT is equivalent to or higher than the standard required in the Code.

Historically Codes of Practice were guidelines and not mandatory. Now they are mandatory for all employers/PCBUs.

NSW Codes of Practice can be accessed here

Psychosocial Hazards At Work – Code of Practice

Employers should be aware of the increasing WHS importance of managing Psychosocial Hazards in the workplace.

To gain a better understanding of what could be a Psychosocial Hazard please see Safe Work Australia’s – list of potential Psychosocial Workplace Hazards

Safework Australia extract / summary:

A psychosocial hazard is anything that could cause psychological harm (e.g. harm someone’s mental health). Common psychosocial hazards at work include: