Here’s a breakdown of the major changes on the table.
Proposed Changes for 2025
The government has signalled several legislative changes that could reshape workplace rights and employer obligations. These include:
1. Capping Remedies for Unjustified Dismissals
A proposal would introduce a cap on personal grievance remedies for unjustified dismissal claims, limited to an employee’s annual salary or a maximum of $180,000—whichever is lower.
2. No Remedies for Serious Misconduct Dismissals
Employees dismissed for serious misconduct will no longer be entitled to remedies, even if the employer failed to follow a fair process. This covers behaviours such as violence, harassment, theft, dishonesty, or any action that destroys the fundamental trust in an employment relationship. Expect significant debate over what qualifies as “serious misconduct” under this change.
3. Holidays Act 2003 Overhaul
The complex and often confusing Holidays Act is set for a major revamp. The proposal suggests moving to an hourly-based calculation for leave entitlements rather than the current daily and weekly approach. The government has expressed an intention to pass this reform by the end of its current term.
4. Pay Transparency Measures
The proposed Employment Relations (Employee Remuneration Disclosure) Amendment Bill aims to override confidentiality clauses in employment agreements, allowing employees to discuss and disclose their pay freely. This is intended to promote pay equity and reduce discrimination.
5. Contractor vs. Employee Status Reforms
New “gateway” tests are being considered to clarify whether a worker is an independent contractor or an employee. This could provide greater legal certainty for businesses while ensuring workers receive the correct employment rights and protections.
6. Partial Strike Pay Deductions Reinstated
The government is looking to restore pre-2018 settings that allow employers to make pay deductions in response to partial strikes. This is aimed at incentivising quicker resolutions in industrial action disputes. Employers would need to provide written notification before making any deductions.
Key Member’s Bills to Watch
Beyond government-led changes, several Member’s Bills have been proposed that could reshape employment law further:
1. Theft by Employer Bill
This Bill seeks to define intentional non-payment of wages as theft, making it a criminal offence. Penalties could include fines of up to $5,000 for individuals and $30,000 for businesses.
2. Restraint of Trade Reform
Under this proposal, restraint of trade clauses would be banned for employees earning less than three times the minimum wage. For those earning above this threshold, employers would need to compensate them at 50% of their weekly earnings for each week of restraint, with a maximum duration of six months.
3. Parent-Teacher Leave Bill
A proposed amendment to the Holidays Act would allow employees to take up to four hours of paid leave annually to attend parent-teacher interviews.
4. Shared Parental Leave Bill
This Bill would provide families with greater flexibility in how they use parental leave, allowing partners to take paid leave at the same time rather than sequentially, as long as the total entitlement isn’t exceeded.
5. Privacy in Employment Disputes
This proposal would introduce anonymity for parties and witnesses involved in Employment Relations Authority disputes, helping to protect individuals from reputational harm.
6. Wage Security in Liquidations
The Security of Workers’ Wages Bill seeks to remove the current $25,000 cap on unpaid wages in company liquidations. If passed, employees would be entitled to the full amount they are owed before other creditors are paid.
7. Collective Agreements in Triangular Employment
This Bill would ensure that employees who are employed by one company but work under the direction of another business (such as labour hire workers) are covered by the collective agreements applicable to their worksite.
What These Changes Mean for You
If these proposals become law, they will have a significant impact on how businesses manage employment relationships and how employees exercise their workplace rights.
- For Employers: Now is the time to review employment agreements, workplace policies, and dismissal processes to ensure compliance with upcoming changes.
- For Employees: Understanding these proposals can help ensure you’re aware of your rights and how these changes could affect your workplace conditions.
What’s Next?
Many of these proposals will require further debate and refinement before becoming law. However, preparation is key—waiting until legislation is passed could leave businesses scrambling to adjust, and employees unaware of their new rights.
If you need guidance on how these changes might affect your workplace, now is the time to seek advice. Stay ahead of the curve and be ready for what’s coming in 2025.
