The Last 12 Months Have Been Full-On And It’s Not Slowing Down

🗨️Let me start with this: I’m not a lawyer, and this isn’t legal advice.

But I am someone who works closely with business owners every day to help them navigate workplace change and the last 12 months have been wild. Reforms have been landing thick and fast, and now with the Albanese Government holding more power in the Senate, we’re seeing even more momentum behind big-ticket changes to how work is regulated in Australia.

There’s a lot of noise out there, and I know how overwhelming it can feel trying to keep up. So I’ve pulled together a simple, practical summary of what’s changing, what it actually means in plain terms, and where you may like to look at focusing some of your time, resources and energy.

1. Penalty Rates & Flexibility Are Tightening

Labor is moving to lock in penalty rates into the Fair Work Act.

What this may mean:

• Inclusive rates may not be allowed

• Junior rates in modern awards may be scrapped

2. Non-Compete Clauses Will Be Banned (From 2027)

Employees earning under $175,000 won’t be restricted from working for competitors even in sensitive or sales-based roles.

What this may mean:

• You can’t rely on post-employment restrictions

• We can't force people not to go to a competitor - what else can we offer - loyalty bonuses etc.

• Contract templates will need a review (remove the restraint clauses)

3. Portable Leave Schemes Are Coming

The Government is looking to roll out industry-funded leave entitlements for casual, gig, and project-based workers like Victoria’s Sick Pay Guarantee.

What this may mean:

• Casuals may get paid leave via a central fund, even if they move between employers

• Employers will contribute to the fund, likely based on hours worked

• Budget impact for casual-heavy or project-based workforces

4. Casual & Labour Hire Crackdown

The Government is tightening definitions around casual work and enforcing “Same Job, Same Pay” for labour hire roles.

What this may mean:

• Casuals must be genuinely short-term no more long-term “casuals” by default

• Labour hire workers must be paid the same as direct employees doing the same jon

• You may need to convert roles to permanent or fixed-term (but be mindful of the new fixed term changes!)

5. Right to Disconnect Is Now Law

Employees now have the legal right to ignore work contact outside their hours and public sector four-day week trials are gaining traction.

What this may mean:

• Managers must be clear on what counts as reasonable contact

• After-hours emails or calls could become a compliance issue

• Hybrid teams are especially at risk boundaries need to be reinforced

• Policies, training, and leadership habits may all need a refresh

6. Wage Theft & Safety Breaches = Criminal Risk

Federal laws are coming to criminalise wage theft and industrial manslaughter, aligning with state-level rules.

What this may mean:

• Underpayments and misclassifications won’t just mean backpay they could mean criminal charges

• Serious WHS breaches could lead to prosecution of individuals, not just the business

• You’ll need to be audit-ready payroll, time records, classifications, safety procedures

7. Tech, AI & Automation Under Scrutiny

Reforms are expected to regulate how employers use technology and AI in the workplace, especially around hiring, firing, and change management.

What this may mean:

• Employers may need to consult more deeply (or even seek consent) before rolling out tech changes

• Use of AI in recruitment, performance management, or termination could be restricted or banned

• Expect union involvement in tech decisions particularly if jobs are affected

• Greater pressure to justify and document the impact of automation on roles

Of course, a lot of this isn’t law yet and some of it is still just chatter but I always say: it’s better to be prepared than caught off guard. Now’s the time to start updating your policies, having the right conversations, reviewing budgets... and maybe having a coffee with your local HR guy 😎

If you want to chat through any red flags in your business, or just catch up on what’s coming next:

0481 877 880 or nathan@sbco.au

Talk soon,

Nathan - Strategic Business Co