The Australian government has initiated a significant review of the nation's core workplace laws, setting the stage for a potential overhaul of employee entitlements that have remained static for decades. This move comes as a powerful union coalition campaigns for a substantial increase in paid annual leave.
Government Inquiry Sets Stage for Potential Overhaul
Workplace Relations Minister Amanda Rishworth formally referred the National Employment Standards (NES) to the House of Representatives Standing Committee on Employment last week. Established in 2009, the NES form the bedrock of minimum conditions for all Australian workers, covering areas like maximum weekly hours, personal leave, and redundancy pay.
Minister Rishworth stated the inquiry will scrutinise whether the standards continue to meet the needs of modern workers and businesses, including opportunities for technical refinements. The findings are anticipated to be a cornerstone of the Labor Party's industrial relations platform ahead of the next federal election.
Union Campaign for Five Weeks Leave and Stronger Protections
Leading the charge for change is the Shop Distributive and Allied Employees Association (SDA). The union has formally proposed raising the NES annual leave entitlement from four weeks to five, equating to 25 days. It also seeks an increase in the casual loading from 25% to 27.5%.
Gerard Dwyer, SDA national secretary, argued that while unions successfully lifted paid leave in the 20th century, there has been no progress for 50 years. "Productivity has lifted, and technology has completely changed the way we work and live," Dwyer said. "There has to be a social benefit. And we say that five weeks' annual leave is the obvious next step."
If successful, Australia would align with European nations like France, Finland, Sweden, and Norway, which mandate at least 25 days of annual leave on top of public holidays.
Simultaneously, the Australian Council of Trade Unions (ACTU) is advocating for reforms to redundancy conditions. It argues current rules are inadequate for protecting workers from job losses driven by automation and technology, a concern given "the emergence of generative AI." The ACTU's proposals include:
- Removing small business exemptions from redundancy obligations.
- Ensuring redundancy pay does not decrease after long service leave adjustments.
- Increasing entitlements after ten years of service.
"Like any laws, over time they need to be reviewed and updated, to iron out any quirks and make them fit for modern workplaces," said ACTU assistant secretary Liam O'Brien.
Business Backlash and Political Divisions
The review has sparked immediate criticism from employer groups and the political opposition. Liberal Industrial Relations spokesperson Tim Wilson warned that an extra week of leave would be "disastrous" for small businesses already facing economic pressure.
"This Labor-dominated inquiry is laying the groundwork to drive up costs for small businesses and make it harder to survive," Wilson stated.
Innes Willox, chief executive of the Australian Industry Group, expressed scepticism, anticipating unions would present a "predictable wish list of expensive demands" that could erode productivity. He cautioned that the political landscape might give some union proposals traction, "regardless of how flawed and unjustified they may be."
Chairing the committee, Labor MP Carina Garland emphasised the NES's role as an unbreakable safety net. "Sixteen years on, it's time for a co-ordinated review to find out whether the standards remain fit for purpose in a changing labour market," Dr Garland said.
The inquiry marks a pivotal moment for Australian workplace law, pitting union calls for improved work-life balance and technological protections against business concerns over cost and competitiveness.
