ARTICLE · 02 JULY 2026

Key Employment Law Changes Taking Effect 1 July 2026

McCabes

Explore more from McCabes

A number of significant employment law reforms will take effect on 1 July 2026.

AustraliaEmployment and HR

Author LinkedIn connections

A number of significant employment law reforms will take effect on 1 July 2026. These changes will impact the following areas:

the national minimum wage and award rates.
unfair dismissal thresholds and compensation.
Victoria’s regulation of non-disclosure agreements in sexual harassment matters.
expanded Government-funded parental leave entitlements.
the introduction of payday superannuation.
substantial reforms to workers compensation scheme in New South Wales.

This article outlines these key changes.

1. Increases to minimum wage and award rates

From 1 July 2026, the following changes will take effect:

a 6% increase in the national minimum wage. The new weekly minimum wage will be $1004.90 a week or $26.44 an hour.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Related Articles

The IRC As Gatekeeper: A Shift Away From The Traditional Demarcation Between Industrial And Workers Compensation Issues In New South Wales

AustraliaEmployment and HR

Carroll & O'Dea

Proposed New Laws Could Significantly Change The Operation Of Post-employment Restraints

AustraliaEmployment and HR

Holding Redlich

Home And Hosed: FWC Sets Australia's First Award-based WFH Clause - With Employers Still Holding The Keys

AustraliaEmployment and HR

Gilchrist Connell

Employers Banning AI Smart Glasses From The Workplace

AustraliaEmployment and HR

Swaab Attorneys

Sexual Harassment Investigations In Victoria: Key Investigation Tips For Employers

AustraliaEmployment and HR

Gilchrist Connell

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Employment and HR

Related Comparative Guides

Comparative Guide

Employee Incentives

Comparative Guide

Technology Outsourcing

See more popular content from

Employment and HR

New Minimum Wage Rates Gain Effect In Australia Today

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?

AustraliaEmployment and HR

Lexplosion Solutions Private Limited

What is an employment separation certificate and when do I need to provide one?

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

AustraliaEmployment and HR

Reforms To Restraints: What The Competition And Fair Work Legislation Amendment (Banning Unfair Non-Competes) Bill 2026 Means For Employers

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.

AustraliaEmployment and HR

Proposed Ban On Non-Compete Clauses.

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.

AustraliaEmployment and HR

HHG Legal Group

AI Wearables In The Workplace: What Employers Need To Know

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).

AustraliaEmployment and HR

Herbert Smith Freehills Kramer LLP

Fair Work Commission Releases New AI Guidance And Warns Against Blind Reliance On AI

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.

AustraliaEmployment and HR

Holding Redlich

The world court has spoken: What the ICJ’s ‘Right to Strike’ opinion means for Australian employers

The International Court of Justice has issued a landmark advisory opinion confirming that the right to strike is protected under ILO Convention No. 87, a treaty Australia ratified in 1973. While this opinion doesn't immediately change Australian domestic law, it creates a significant new reference point that unions may leverage in litigation, enterprise bargaining, and industrial relations reform discussions. Australian employers face potential challenges to existing Fair Work Act restrictions on protected

AustraliaEmployment and HR

Payment in lieu of notice period must be delivered before termination

The practice of employers to provide payments in lieu of notice after the date of termination is unlawful.

AustraliaEmployment and HR

Hall Payne Lawyers

Restraint of trade clauses in employment contracts

The restraint of trade clause must be reasonably necessary to protect the employer's legitimate business interests.

AustraliaEmployment and HR

Workers compensation Certificates of Capacity in Victoria

A Certificate of Capacity is required when you are making a WorkCover claim for weekly payments in Victoria.

AustraliaEmployment and HR

Polaris Lawyers