As Australia approaches the upcoming federal election, industrial relations have once again become a central point of political debate. The major parties Labor, Liberal, and the Greens have each laid out distinct visions for the future of workplace laws, with significant implications for employers, employees, and the broader economy. From wage reforms and enterprise bargaining to casual employment, the proposed changes span a wide range of issues. This article outlines three key industrial relations policy positions of each party, helping businesses understand what may lie ahead depending on the election outcome.

AUSTRALIAN LABOR PARTYLIBERAL PARTY OF AUSTRALIATHE AUSTRALIAN GREENS

Expansion on the Right to Disconnect

In 2024, the Labor Party introduced the Right to Disconnect. Previously, Labor also put forward plans to ban employees from working ‘excessive hours’, a move that could lead to significant changes and consequences for non-compliant employers.

Repealing the Right to Disconnect

The Liberal Party has proposed repealing the ‘Right to Disconnect’ laws, which currently prevent employers from penalising staff for not responding to work-related communications outside of working hours.
 

Extending Paid Parental Leave 

The Greens have proposed extending paid parental leave from 26 to 52 weeks and expanding eligibility to include PhD students, aiming to encourage shared caregiving. In addition, it is proposed that superannuation will be payable on paid parental leave. The plan is estimated to cost $7.7 billion over four years, would be funded by ensuring large corporations pay their fair share of tax. 

Superannuation Payment Timing

The Labor Party proposes introducing stricter regulations for employers regarding superannuation payments. Instead of allowing employers to pay superannuation entitlements quarterly, Labor suggests requiring these payments to be made with each pay cycle. This reform will impose a greater compliance responsibility on employers.
 

Reintroducing the Australian Building and Construction Commission (‘ABCC’)

The Liberal Party has proposed reinstating a more stringent ABCC to curb or restrict the aggressive and confrontational tactics employed by Australian unions.
 

Four Day Work Week

The Greens have proposed introducing a four-day work week, aiming to reduce working hours without reducing employee pay. They also plan to establish a National Institute to support and oversee the policy’s implementation across workplaces.
 

Banning Non-Compete Clauses

The Labor Party proposes banning non-compete clauses for most workers, arguing that they are unjustified and unfair to employees seeking better, higher-paying opportunities. This ban would apply to workers earning below the high-income threshold set by the Fair Work Act 2009 (Cth) (currently $175,000).
 

Introducing National Racketeering Laws

The Liberal Party has also proposed the introduction of new national racketeering laws that would hold union leaders criminally accountable for illegal activities. This measure aims to deter corrupt practices within unions and ensure that leaders are held responsible for any unlawful actions that undermine the integrity of the workplace.

Paid Leave for Casuals

The Greens have proposed providing sick leave for casual employees, ensuring workers aren't forced to choose between their health and missing out on pay. This initiative seeks to improve fairness and security for casual workers, who currently lack paid leave benefits.
 

With the potential for significant shifts in workplace laws depending on who forms government, it’s essential that employers stay informed. Understanding the industrial relations policies of Labor, Liberal, and the Greens can help businesses prepare for changes and navigate compliance more effectively. We encourage all employers to review these policy proposals closely and consider how they might impact operations, workforce planning, and long-term strategy.

This communication provides general information which is current as at the time of production. The information contained in this communication does not constitute advice and should not be relied upon as such. Professional advice should be sought prior to any action being taken in reliance on any of the information. Should you wish to discuss any matter raised in this article, or what it means for you, your business or your clients' businesses, please feel free to contact us.

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Ben Duggan

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Jasmine Zanatta

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