Employment Law changes for the new financial year

The Australian Government has raised the National Minimum Wage and Minimum Award Wages effective July 1, 2026, with weekly rates increasing from $948.00 to $1,004.90 and hourly rates from $24.95 to $26.44. What compliance actions must employers take to avoid penalties for underpayment, and how do these changes affect different worker categories including trainees, apprentices, and entry-level employees?

When terminating an employee, employers must provide an employment separation certificate upon request.

A recent NSW Court of Appeal decision highlights both the scope of an employer’s duty to guard against reasonably foreseeable psychiatric injury and the importance of the way issues are framed and concessions made during litigation.

The Fair Work Commission has introduced new guidance requiring parties to disclose their use of generative AI in proceedings, following a 70% surge in workload attributed to AI-generated applications. A recent case demonstrates the consequences of blind reliance on AI tools, with one applicant ordered to pay costs after continuing a jurisdictionally flawed claim despite repeated warnings from the Commission.

The Albanese Government has released draft legislation that would fundamentally reshape how Australian employers use restrictive covenants and competitive agreements. The proposed Competition and Fair Work Legislation Amendment (Banning Unfair Non-Competes) Bill 2026 seeks to prohibit or strictly regulate no-poach agreements, wage-fixing arrangements, non-compete clauses, and co-worker non-solicitation terms.

The Full Federal Court's decision in Totino v Metro Trains Melbourne clarifies how employers can successfully defend general protections claims when dismissing employees who have made workplace complaints or workers compensation claims. The case establishes critical principles about who must give evidence, the distinction between advisers and decision-makers, and why proper documentation of the decision-making process is essential for employers facing the reverse burden of proof.

The Australian Government has released draft legislation proposing to ban non-compete clauses for workers earning below the Fair Work Act high-income threshold, currently $190,100 per year. The reforms are not yet law and are intended to commence in 2027, subject to legislation passing Parliament.

In Stathakis v Richard Crookes Constructions Pty Ltd [2026] NSWSC 1113, the NSW Supreme Court entered a verdict and judgment for the defendant against the plaintiff’s unsuccessful negligence claim finding that the defendant, as the head contractor of the site on which the plaintiff sustained injury, did discharge the duty of care it owed.

This article examines the rise of AI wearables—particularly AI-enabled smart glasses—in the workplace, covering both employer-driven use cases (such as logistics, healthcare, and remote operations) and employee-driven use (including accessibility, personal devices brought to work and covert recording).

Recent Australian workplace reforms have fundamentally altered enterprise bargaining dynamics, introducing new mechanisms like intractable bargaining determinations and expanded Commission powers to amend agreements. How should employers navigate these changes to develop effective bargaining strategies while managing risks associated with mandatory terms, genuine agreement principles, and the better off overall test?