For the first time since the Fair Work Act 2009 came into force, Australia’s National Employment Standards (NES) are undergoing a comprehensive review. The federal parliamentary inquiry, announced in November by the House of Representatives Standing Committee on Employment, Workplace Relations, Skills and Training, signals a potentially significant shift in the country’s workplace framework.
Why the Review Is Happening Now
Australia’s labour market has changed dramatically over the past decade and a half. The rise of gig work, expansion of remote and hybrid arrangements, persistent skills shortages, an ageing workforce and evolving expectations around flexibility and work-life balance have reshaped how work is performed and managed.
These developments have prompted policymakers to reassess whether the NES, which sets minimum employment entitlements, continues to provide an appropriate and effective safety net for modern workplaces.
Scope of the Inquiry
While the review is broad, it is not all-encompassing. The committee has confirmed that it will not focus on:
- Flexible working arrangements
- Casual employment
- Parental leave
- Family and domestic violence leave
These areas have either been reviewed recently or are scheduled for separate examination. Instead, the inquiry may concentrate on other core standards that have remained largely unchanged since 2009.
Key Areas of Potential Reform
Although final recommendations are yet to be made, several potential reforms are already under discussion:
- Increased Annual Leave Entitlements
A proposal to raise the minimum annual leave entitlement from 20 days to 25 days per year is being considered. Such a change wouldrepresent a substantial adjustment to workforce planning and cost management across industries. - Strengthened Redundancy Provisions
The review may also consider expanding redundancy entitlements.Possible reforms include:
- Higher redundancy payouts
- Removing current exemptions for small businesses
- Updating provisions to reflect job displacement caused by technological change, including automation and artificial intelligence
These reforms would have significant financial and operational implications for employers, particularly in sectors undergoing digital transformation.
What Employers Should Be Doing Now
Although no legislative changes have yet been enacted, organisations should take proactive steps to prepare for potential reform.
- Review Leave Accruals and Liability
An increase in annual leave would affect accrued leave balances and workforce coverage. Employers should model the financial impact of additional leave entitlements and assess whether current systems can manage increased leave liabilities. - Evaluate Workforce Planning and Rostering
If leave entitlements expand, businesses may need to implement stronger scheduling processes to ensure adequate staffing levels while preventing excessive leave accumulation. - Audit Employment Contracts and Policies
Employment agreements, HR policies and internal procedures should be reviewed to identify any exposure areas. This includes ensuring clarity around redundancy processes and compliance obligations. - Strengthen Manager Capability
Leaders and frontline managers must have a clear understanding of existing policies , particularly around casual conversion, redundancy handling and statutory compliance to reduce risk during any transitional period.
Looking Ahead
The committee is currently inviting submissions to inform its recommendations to the government. While the final outcome remains uncertain, the review represents a pivotal moment in Australian employment law.
For employers, the message is clear: monitor developments closely and prepare strategically. Proactive assessment and planning now may significantly reduce disruption if reforms to the National Employment Standards are introduced.
If you have clarifications and specific concerns related to the upcoming changes, please contact NB Employment Law for more details