4 Industrial Relations Changes Employers Must Prepare For [2025]

From contract limits to non-compete bans, here are four changes every employer needs to be across before they take effect.

Over the past two years, the country has seen workplace reforms introduced. This reform-heavy phase introduced changes in the casual conversion process, the criminalisation of wage theft, and the Right to Disconnect policy, among others.

Now, the government has announced the next phase. This phase is about “bedding down” existing reforms, ensuring businesses have time to implement and adapt them. For employers, it means understanding which changes apply to them and taking the right steps to remain compliant. Read on to learn what’s involved.

#1 – Fixed-term contracts: exceptions end November 2025

What’s changing: Under the Closing Loopholes Bill, fixed-term contracts have tighter limits on length and renewals. Some sectors like higher education and charities or not-for-profits received additional exceptions, but these lapse in November 2025.

What this means for employers: If you’ve relied on the temporary exceptions, some team members may need to convert to ongoing roles in your business. If the roles have truly ended, you may need to initiate redundancy processes.

What employers should do: 

• Identify team members who are under fixed-term contracts. Flag any roles that are affected post-November 2025.
• Determine which roles are legitimately ending, and which ones will undergo the casual conversion process.
• Budget and plan for possible redundancies. This includes notices, conducting consultations, and computing entitlements.

#2 – Proposed changes to leave entitlements

What’s proposed: 

• Employer-paid parental leave for stillbirth or early infant death. No timeline for this proposal to date.
• Paid reproductive health leave. There is a proposed 12 days per year leave via the NES/awards, however, the government hasn’t committed to this yet.

What this means for employers: Even before laws change or are written into legislation, expectations around these leave entitlements are shifting. Being proactive when it comes to your policies can help you manage leave entitlements effectively and ensure managers are trained for any conversations about sensitive leave.

#3 – Award changes after gender undervaluation ruling

What’s changing: The Fair Work Commission (FWC) increase award rates and/or reclassify roles in the following female-dominated awards:

• Aboriginal & Torrest Strait Islander Health Workers and Practitioners & ACCHS Award 2020
• Children’s Services Award 2010
• Social, Community, Home Care & Disability Services Industry Award 2010
• Health Professionals & Support Services Award 2020
• Pharmacy Industry Award 2020

What this means for employers: The FWC are now working through the details before finalising changes. Employers in these industries should get ahead of the changes by treating these increases as a certainty and prepare payroll and budgets with this in mind.

#4- Limits on non-compete clauses

What’s changing: The government plans to ban non-compete clauses for employees who are under the high-income threshold ($183,100). The change is targeted to start in 2027 and would apply to new contracts.

What this means for employers: If your business relies on broad non-compete clauses, they’re likely to be unenforceable for many roles going forward.

What employers should do:  

• Audit your contracts. Identify which employees are under the high-income threshold.
• Rewrite templates: Strengthen your confidentiality, IP, and non-solicit clauses.
• Plan ahead: Make the necessary changes well before 2027. Also consider how these changes will be communicated to your team.

Keeping up with shifts in the employment landscape

These upcoming changes will directly impact how employers manage contracts, leave entitlements, pay structures, and employment terms.

It can feel overwhelming to keep up with changes and reforms in industrial relations, especially for busy employers and business owners. At Now Actually, we help employers with interpreting legislation and updating policies—all in a straightforward approach tailored to your business and situation.

Book a discovery call with us today.