Payday Super

From 1 July 2026, superannuation will need to be paid at the same time wages are paid, instead of quarterly. They are also proposing a new definition of qualifying earnings that includes more categories than the current ordinary time earnings.

The main purpose of the change is to reduce incidences of unpaid super and improve transparency around employer contributions. For many years, this has been a common component of wage theft and underpayment disputes.

What does this mean for employers? Superannuation will effectively become part of the normal payroll cycle. Employers will need to ensure their payroll systems can effectively manage super payments with each pay run. As superannuation has traditionally been paid quarterly, payroll processes and cash flow management may require consideration to accommodate more immediate payment.

It is recommended that organisations monitor payments over the next twelve months, as a failure to comply with Payday Super, which requires contributions being received by and employee’s super fund within seven business days of payday, will face a strict and punitive Superannuation Guarantee Chare (SGC) regime. This means the Australian Taxation Office (ATO) will impose mandatory penalties on employers who fail to pay superannuation in full and/or on time, resulting in significantly higher costs to organisations than the original owed.

Ban on Non-Compete Clauses

The Federal Government is currently considering banning non-compete clauses for employees earning below the high-income threshold, which is currently around $183,000. If this reform proceeds, many existing restraints that prevent employees from working for a competitor may become unenforceable for a large part of the workforce.

What would this mean for employers?  Logically, this will likely shift the focus toward tighter protection of confidential information, intellectual property and client relationships, rather than relying on broad restraints that prevent employees from joining competitors. Businesses may also need to review their employment contracts to ensure appropriate protections are in place if the reforms are introduced.

Scrutiny of labour market competition

There is increasing attention on employment practices that may restrict competition in the labour market. This includes arrangements such as no-poaching agreements between employers, wage-fixing arrangements and overly restrictive post-employment restraints. These types of practices have already attracted regulatory scrutiny internationally and are now being examined more closely in Australia.

What would this mean for employers?  If stronger regulation is introduced, employers may need to ensure employment contracts and recruitment practices are structured carefully and do not unintentionally restrict employee mobility. It is worthwhile identifying any potential risks and assessing implications for your business. New legislation will potentially increase the risk of competition law breaches, unenforceable restraint clauses, and regulatory scrutiny, particularly where businesses rely on informal arrangements or outdated contract terms.

National Employment Standards (NES) Review

The Federal Government is currently reviewing the National Employment Standards (NES), which set the minimum employment entitlements under the Fair Work Act. The review is looking at whether the NES still reflect modern working arrangements and expectations. Areas being discussed include stronger rights to flexible working arrangements, potential changes to maximum weekly hours and the possibility of introducing additional leave entitlements.

What would this mean for employers? While the review is still at a consultation stage, any changes could have a broad impact for organisations. The NES entitlements override employment contracts, awards and workplace policies where they provide lesser conditions. If significant changes are implemented, employers will most likely need to make changes to policies and employment contracts. People leaders will also require compliance training, as even a small change can impact on payroll, rostering and day to day management decisions.

Confidentiality Clauses in Workplace Settlements for Sexual Harassment (Victoria)

In Victoria, there are proposals being considered to restrict the use of confidentiality clauses in workplace sexual harassment settlements. Under the proposed approach, confidentiality clauses could only be included if requested by the employee rather than being included as a standard term by employers. Other states are also starting to look at this but have yet to make any announcements.

What would this mean for employers? If introduced, this could change how workplace investigations and settlements are handled and place greater emphasis on transparent investigation processes and workplace culture management. Victoria is currently the only jurisdiction to introduce these reforms. However, given the broader regulatory focus and international momentum, it is likely only a matter of time before other States follow. These laws will materially increase the risk of workplace matters becoming public, exposing employers to significant legal and reputational damage.

If you need workplace relations assistance and report, learn more here or call Alan Doyle on 03 9864 6000 for a free confidential consultation.