Australian Federal Election 2025: The workplace agenda

Current Employment and Workplace Relations Minister, Murray Watt, has repeatedly suggested that any future IR reforms by the current government are likely to be limited. We can expect that Labor’s plans will be developed in consultation with key stakeholders, and in particular the Australian Counsel of Trade Unions (ACTU).

Based on previous positions and public comment it appears that areas of further reform (in addition to the recently announced move to introduce restrictions on post-employment restraints for employees earning less than $175,000) could include:

• Expansion of the right to disconnect: Labor has previously proposed to introduce a prohibition on working ‘excessive hours’. This would bookend with employees’ new Right to Disconnect.
• National long service leave scheme: Indications are that the ACTU would be pushing for a unified Federal Long Service Leave regime, adopting the highest entitlements across the country to ensure no workers are worse off under a new unified LSL system.
• Superannuation payment timing: Labor has mooted a move to require superannuation contributions to be made each pay cycle and not quarterly as has been the case for decades. Increasing the compliance burden on employers and payroll systems in particular.
• Review of non-compete clauses: The Federal Government has started its review of non-compete laws, with the ACCC and Treasury being asked to provide advice in March 2025. We can expect enforcement of restrictive covenants to become harder if Labor returns to Government.
• National labour hire licensing scheme: Another area for harmonisation of laws is in Labor Hire Licencing. This would build on initial plans in this space from 2023, moving toward a unified national system.

The Coalition has made it clear that they will seek to reduce the compliance burden on businesses, “curtail union militancy in Australian workplaces”, and increase labour productivity, but that they have no immediate plans to wind back Labor’s more significant recent reforms.

The Coalition has indicated it will take a “targeted package of [IR] repeals” to the election. To date, this is a short list of:

• Repealing the right to disconnect; and
• Introducing a new definition of casual employment based on the “real substance, practical reality and true nature of the employment relationship”.

Perhaps the biggest moves currently mooted are the Coalition’s plans to:

• reintroduce the Australian Building and Construction Commission (ABCC), returning the ABCC as the regulator of the Building & Construction Industry again, and
• introduce national racketeering laws with the intention of enabling police to lay criminal charges against union leaders for illegal behaviour.

While the Coalition will likely be running a small campaign on IR at this election, it is safe to say that generational IR reform will be a key focus of any Coalition government, in particular because business groups have been critical of Labor’s reforms and their impact on workplace productivity.  

With the potential again for the Teal independents holding deciding votes on critical issues, we turn our attention to what might be in their collective mindset. Noting that the Teal independents are a grouping of independents without a single platform.

The types of IR reforms being advanced by the Teals include the following:

• Respect@Work: further implementing the Respect@Work Report recommendations prepared by the Australian Human Rights Commission to reduce sexual harassment and bullying and promote safer and more respectful workplaces.
• Gender inequality: addressing gender inequality in wages and superannuation and eliminating the gender pay gap, as well as supporting wage increases for certain industries such as nurses, midwives, and aged care workers; and
• Small business compliance: reducing IR regulations for small businesses, including by amending the definition of ‘small business’ in the Fair Work Act from 15 employees to 25 employees. Small businesses are subject to less onerous requirements under the Fair Work Act in relation to a number of entitlements.