Federal election 2025 result: Employment and industrial relations reforms

Following the re-election of the Albanese Labor Government, employers should prepare for further industrial relations reforms aimed at strengthening employee and union protections. Key changes will impact labour hire practices, superannuation, postemployment restraints, and regulatory oversight, with the reforms benefiting a broad range of Australian workers.

“Same Job, Same Pay” for Labour Hire

The Fair Work Legislation (Closing Loopholes) Act 2023 introduced “same job, same pay”, effective from November 2024. Despite the Liberal party mooting the possible repeal of the ‘same job same pay’ reforms, the Labor Government will continue to employ the legislation.

Under the legislation, labour hire workers must receive the same remuneration as directly engaged employees for equivalent work. Major companies such as Qantas and BHP have already faced significant financial and administrative impacts.

Employers are urged to review labour hire contracts and workforce structures to ensure compliance.

Payday Superannuation

From 1 July 2026, employers must pay superannuation contributions on the same day wages are paid, replacing the current quarterly schedule. This reform, “payday super,” is intended to address unpaid super and benefit lower-income and casual employees.

Employers should ensure their internal processes are prepared for this transition to avoid potential compliance issues.

National Labour Hire Licensing Scheme

The Federal Government has reaffirmed its intention to implement a national labour hire licensing regime, streamlining existing regulatory frameworks currently governed at the state and territory level.

The scheme will aim to protect vulnerable workers, enhance enforcement of workplace laws, and reduce duplication for businesses operating in multiple jurisdictions.

Post-Employment Restraints

Major reforms proposed for 2027 will prohibit non-compete clauses in employment contracts for employees earning below the high-income threshold (currently $175,000 and increased annually). Employers found in breach could face civil penalties.

The changes are likely to affect professions in sales, IT, legal, and financial services. Non-solicitation and non-poaching clauses may also be impacted, subject to consultation. Employers should begin reviewing restraint provisions as soon as possible.

Fair Work Commission Appointments

A continued cultural shift is expected in the Fair Work Commission, with more appointees from union or employee advocacy backgrounds.

This may influence outcomes in areas like enterprise bargaining, unfair dismissal and labour hire regulation.

Next Steps for Employers

To prepare, businesses should monitor labour hire arrangements, update payroll systems ahead of payday super changes, and review contract terms related to post-employment obligations.

For more detail on these upcoming employment and industrial relations reforms, click here.