Heading to the polls: Workplace relations policies in the 2025 Federal Election

Australians will be heading to the polls on Saturday, 3 May 2025.  As campaigning gains momentum, we are seeing more details from the major parties on workplace and industrial relations reforms should they take power.

At this stage, neither Labor nor the Coalition have proposed significant industrial relations reform agendas, which is not entirely surprising from the Labor Government given the volume of reform introduced during its first term.  That said, both parties, along with the Greens and some Independent members, have made various policy and public statements which provide some insight into what reforms employers may be able to expect in the future. We summarise key proposals here.

Labor

The current election follows a Labor term marked by some of the most significant workplace law reforms we have seen since the Fair Work Act 2009 (Cth) was first introduced.

Policy details about further workplace and industrial reforms are fairly limited at this stage. This is unsurprising, including because independent statutory reviews into the existing reforms are being conducted (noting the Secure Jobs, Better Pay Review was due to report to Government in March 2025).

Labor has announced that it proposes to:

• ban post-employment non-competition restrictions – for workers earning less than the high-income threshold (currently $175,000 per annum). This change is set to operate prospectively from 2027, aiming to enhance labour market mobility, increase wages, and promote competition (see our related article here);
• address key challenges facing the construction industry via the draft blueprint for the future of the construction industry – the draft blueprint provides a guide for the National Construction Industry Forum (a body created to advise Government on matters including workplace relations and safety matters), with commitments to long-term improvements for consultation and to tackle challenges facing the industry including governance, lawfulness and compliance;
• increase public service employment – with a view to reducing public spend on external consultants; and
• promote 20-day payment terms for contractors and subcontractors working on major government construction projects for Government Business Enterprises – with a stated intention to support small businesses.

Recently, Labor announced that it plans to pass legislation to prevent some penalty rates being reduced through award changes decided by the Fair Work Commission. This change would not affect the ability to vary award minimum penalty rates in an enterprise agreement. The Australian Council of Trade Unions is also campaigning for a new wage theft tribunal to make wage underpayments easier to recover but this is yet to be adopted by the major parties.

Coalition

The Coalition has not indicated that it will seek to substantially reform current laws or changes introduced by Labor in the past few years but it has identified some priority reform areas.

The priorities of the Coalition Government indicates an intention to ‘back small business’ by implementing a ‘pro small business agenda’ focussed on ‘delivering less government intervention and greater business freedom’.  The Coalition proposes to:

• reverse aspects of Labors industrial relations reforms, including returning to a simpler definition of a ‘casual worker’ – details regarding what the ‘simpler definition’ will be have not been confirmed at this stage, although in a May 2024 Media Release, Shadow Minister for Employment and Workplace Relations, Michaelia Cash did reference the fact that the former Coalition Government was the first to introduce a definition of a casual employee in 2021. That definition placed primacy on the terms of the contract (rather than the ‘real substance, practical reality and true nature’ of the engagement as the current definition does).
• implement various measures targeted at organised crime in the construction industry – these measures include:
  • re-establishing the ABCC, to have oversight over the construction industry, reversing Labor’s move to abolish it;
  • introducing new anti-racketeering laws, with an AFP-led taskforce to investigate criminal conduct in the construction sector; and
  • introducing legislation to deregister the CFMEU, following allegations of misconduct and crime.

The Coalition has recently tempered its position on various proposals including that it no longer proposes to:

• repeal ‘same job, same pay’ laws – this comes following recent research by the McKell Institute which highlighted the laws could contribute to $2.56 billion per year to the economy and boost wages by nearly $1 billion a year;
• end work-from-home arrangements for public servants – following public criticism, the Coalition has expressed support for flexible work arrangements, acknowledging its former policy was a mistake; and
• reduce 41,000 public service jobs – through forced redundancies to reduce government spending. Instead, it is now reported that the reduction will be achieved through a hiring freeze and natural attrition.

Greens

The Greens have suggested workplace reforms focussed on driving long-term structural change that could see significant cultural and social impact, with key proposed policies including:

• the four-day work week – the Greens propose to support a national four-day work week test case through the Fair Work Commission, aiming to reduce working hours to a four-day week, with no loss of pay;
• paid leave for casuals – the Greens propose to extend pro-rata paid entitlements to sick leave, annual leave and carer’s leave to casuals; and
• reproductive health leave policy – the Greens have proposed to give every worker the right to 12 days of paid reproductive health leave per year as part of the National Employment Standards and modern awards, covering perimenopause, menopause, fertility treatments, and chronic conditions like endometriosis.

Independents

Several Independents are advocating for reform that will reflect the needs of small businesses and offer greater employment flexibility – including by:

• redefining ‘small business’ in the FW Act – eight independents have proposed an increase in the threshold from 15 to 25 employees, extending small business exemptions and entitlements; and
• simplifying and increasing flexibility in Modern Awards.

Key take aways for employers

If Labor is re-elected, we may see a continuation of reforms, with more worker protections. If the Coalition forms government, we may see a shift towards deregulation and increased scrutiny of unions and the construction sector.

Workplace relations will remain a dynamic and evolving area. With policies still developing, employers should watch this space for insight on what future reforms may be on the horizon following the election.

If you found this insight article useful and you would like to subscribe to Gadens’ updates, click here.

Authored by: 
Siobhan Mulcahy, Partner
Jennifer Winckworth, Special Counsel
Megan Grimshaw, Graduate