Australia has seen sweeping workplace reform over recent years, and the changes are far from over. While much has been implemented, employers now face a critical phase: embedding these changes, adapting to what’s next, and staying ahead of proposed legislation. If you’re heading into planning or reviewing your HR strategies, here are 5 industrial relations developments emerging on the horizon for your agenda.
1. Breaking Down Non-Compete Clauses
A major reform coming into focus is the ban on non-compete clauses for employees earning below the high-income threshold, currently set at $183,100 (FY26 estimate). The aim is to promote fairer labour market mobility and help employees transition without unreasonable restrictions. While this change is expected to take effect in 2027- if mandated, it is important for businesses to begin reviewing and revising existing contracts now to avoid future issues.
2. Tightening Up Fixed-Term Contracts
The Closing Loopholes Act (2024) has imposed limits on the duration and renewal of fixed-term contracts-unless they fall under clear exceptions, such as in higher education or nonprofit sectors. With exemptions set to expire soon, it’s time to audit your fixed-term roles and plan ahead to transition employees to ongoing terms where required.
3. Expanded Leave Obligations
Sensitive topics like parental leave following stillbirth or early infant loss are currently under review. Though legislation isn’t yet enacted, employers are being urged to anticipate changes that may reshape policies on reproductive or bereavement support.
4. Gender-Based Reclassification of Awards
In a landmark step for workplace equality, five female-dominated awards are being reclassified and adjusted upwards. These include:
- Pharmacy Industry Award 2020 – the pay increases has been agreed and will be implemented. in 3 stages, the first was 30 June 2025, then 30 June 2026 and lastly 30 June 2027.
The following four Awards will see increase in pay rates as well as reclassifications. These changes are still being finalised by the Commission.
- Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020
- Social, Community, Home Care and Disability Services Industry Award 2010
- Children’s Services Award 2010
- Health Professionals and Support Services Award 2020.
We will keep you updated on any changes as they become available.
If your workforce is covered by the above awards, prepare now by reviewing pay scales, systems, and classification alignment.
5. Broader IR Developments to Monitor
Several other industrial relations initiatives that all HR professionals should be aware of include:
- National minimum wage increases (came into effect July 2025)
- New “Right to Disconnect” obligations for small businesses (from August 2025)
- The Employee Choice Pathway, offering eligible casuals access to permanent work (from August 2025)
- Psychosocial hazard management becoming a legal requirement (proposed from December 2025)
- Payday Super, requiring superannuation to be paid with wages (expected to come into effect from July 2026)
Why This Matters for Your Business
These reforms emphasise fairness, transparency, and modern workplace values-but failing to adapt can expose your business to legal risk, underpayment claims, or damaged morale. Understanding these shifts and acting early can transform compliance from a burden into a strategic advantage.
How Strategic HR Australia Can Support You
At Strategic HR Australia, we believe industrial relations change doesn’t need to feel overwhelming. We work closely with business leaders to make change manageable, fair, and effective:
- Conduct contract and policy audits to identify at-risk areas.
- Help revise agreements, including removing or updating non-compete clauses and fixed-term contracts.
- Assist with pay rate realignment in light of award reclassifications.
- Design leave policies that are compassionate and compliant.
- Implement workplace systems to support new upcoming obligations like Payday Super and psychosocial safety.
Whether you’re simply planning or already deep into reform, let us help you simplify the journey and protect what matters most—your people and your business. Contact us today or book a free consultation to discuss the next step.
For a refresher on the employment law changes that took effect on 1 July 2025, you can read our earlier update here: Employment Law Updates from 1 July 2025: What Every Employer Must Know. Together, these articles provide both the immediate and future picture of workplace reform in Australia.
