Following Labor’s success in the 2025 Federal Election, we look ahead to what proposed changes to the industrial landscape may occur during the next three years.
As part of its 2025 election campaign, the Labor Party indicated its initial industrial relations related policies would focus on:
- Legislating penalty rates in modern awards, so that they cannot be reduced.
- Making a submission to the FWC annual wage review for an “economically sustainable wage rise” for workers on minimum and award wages.
- Protecting the right to work from home, assisting families to balance work and family.
- Working with the FWC to address recent findings regarding gender undervaluation in female-dominated awards.
Prior to the Federal Election, the Labor Government also indicated that as part of the 2025-2026 Federal Budget, it would move to ban non-compete restraint provisions in employment agreements, for employees earning less than the high-income threshold (currently, $175,000). It is proposed that any changes would take effect in 2027.
In preparation for any such changes, it may be the time for employers to review their employment agreements with employees earning less than the high-income threshold, to consider whether existing non-compete restraints remain fit for purpose, or whether non-solicit restraints could be bolstered and better articulated to protect the employer’s interest, with the expectation that non-compete restraints for these employees may become unenforceable.
If you need assistance or have any questions, please contact Carter Newell’s Employment & Workplace Advisory team.
This article may provide CPD/CLE/CIP points through your relevant industry organisation.
The material contained in this publication is in the nature of general comment only, and neither purports nor is intended to be advice on any particular matter. No reader should act on the basis of any matter contained in this publication without considering, and if necessary, taking appropriate professional advice upon their own particular circumstances.
