Over the past three years, Australia has witnessed substantial reforms to employee relations legislation, reshaping the employer and employee dynamic.
While many changes focus on fairness and employee protections, several reforms offer some potential improvements through workforce stability, clarity, and modernised workplace practices, but none perhaps go directly towards assisting the core commercial requirements of business to make ongoing productivity improvements to compete globally and improve our overall longer term standard of living.
1. Secure Jobs, Better Pay Act 2022
The Secure Jobs, Better Pay Act introduced major reforms to the Fair Work Act 2009. These include enabling multi employer bargaining in low paid sectors, strengthening rights to flexible work, banning pay secrecy clauses, and placing a positive duty on employers to prevent sexual harassment. By fostering inclusive workplaces and improving job security, these reforms aim to reduce turnover and increase employee engagement. (Fair Work Ombudsman, 2023a).
2. Paid Family and Domestic Violence Leave
From February 2023 (for large employers) and August 2023 (for small businesses), employees gained access to 10 days of paid family and domestic violence leave. By supporting employees during personal crises, this reform may reduce unplanned absenteeism and enhance employee well being. (Fair Work Ombudsman, 2023b).
3. Closing Loopholes Acts 2023 and 2024
These amendments tackle wage theft, regulate labour hire arrangements to ensure pay equity, and clarify the definition of casual employment. Notably, the introduction of a "same job, same pay" framework aims at providing clarity for employers and reduce legal ambiguity, which can otherwise result in workplace disputes and inefficiencies (Fair Work Commission, 2024a).
4. Right to Disconnect (2024)
From 2024, employees gained the right to refuse unreasonable after hours work communications. Though initially seen as a restriction, this change could perhaps support productivity by protecting employee rest time and reducing burnout—key factors in maintaining long term workforce performance (Fair Work Commission, 2024b).
Productivity Implications for Employers
While some changes present compliance costs, others may improve workforce stability, clarity in employment relationships, and employee satisfaction. These are essential components of a productive and resilient business model. For example, a well rested and engaged workforce may tend to report fewer errors and deliver more consistent performance outcomes. Whether all these reforms will result in any real future core productivity improvements then only time will tell by our standard of living improving correspondingly.
References
Fair Work Ombudsman, 2023a. Secure Jobs, Better Pay. [online] Available at: https://www.fairwork.gov.au/about-us/workplace-laws/legislation-changes/secure-jobs-better-pay [Accessed 24 Apr. 2025].
Fair Work Ombudsman, 2023b. Legislation changes. [online] Available at: https://www.fairwork.gov.au/about-us/workplace-laws/legislation-changes [Accessed 24 Apr. 2025].
Fair Work Commission, 2024a. Closing Loopholes Acts – what’s changing. [online] Available at: https://www.fwc.gov.au/about-us/new-laws/closing-loopholes-acts-whats-changing [Accessed 24 Apr. 2025].
Fair Work Commission, 2024b. Right to Disconnect. [online] Available at: https://www.fwc.gov.au/about-us/new-laws/right-to-disconnect [Accessed 24 Apr. 2025].
