Australia: Employment and HR

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.

The High Court's Personnel Contracting decision fundamentally changed how businesses must assess worker relationships, revealing that ABNs and contractor agreements alone don't determine employment status. When the ATO or state revenue authorities reclassify these arrangements, businesses face retrospective liabilities across PAYG withholding, superannuation, and payroll tax that can transform healthy balance sheets into insolvency scenarios.

If you want to sponsor a worker under the Skilled Worker route, you need to understand both the minimum salary requirements and the wider cost of sponsorship. Those rules sit on top of the general considerations that apply when hiring workers from overseas. For most new Skilled Worker applications, you must pay at least £41,700 per year or 100% of the going rate for the worker’s occupation code, whichever is higher.

Victorian laws now restrict how Non-Disclosure Agreements can be used in workplace sexual harassment cases, introducing six mandatory preconditions that employers must meet before an NDA can be validly entered into. These new protections aim to address power imbalances and prevent employees from being coerced into silence, while giving workers the right to terminate NDAs after 12 months and speak to police, medical professionals, and lawyers without breaching confidentiality.

The Federal Court's decision in Gillham v Melbourne Symphony Orchestra examines whether state anti-discrimination laws constitute 'workplace laws' under the Fair Work Act, and whether expressing political opinions during a performance can trigger general protections. This case explores the boundaries of contractor protections and the interplay between federal workplace legislation and state-based discrimination laws.

Recent amendments to the Industrial Relations Act 1996 (NSW) (Act), have significantly expanded victimisation provisions, which are set to have a direct impact on employers, including local and state government entities. This article aims to highlight relevant legislation, provide practical steps and examples to support compliance and risk management.

The High Court's Personnel Contracting decision fundamentally changed how businesses must assess worker relationships, revealing that ABNs and contractor agreements alone don't determine employment status. When the ATO or state revenue authorities reclassify these arrangements, businesses face retrospective liabilities across PAYG withholding, superannuation, and payroll tax that can transform healthy balance sheets into insolvency scenarios.

Under Australian superannuation law, limited recourse borrowing arrangements typically require separate bare trusts for each asset acquired by an SMSF. However, certain exceptions allow multiple assets to be held in a single bare trust, including identical assets purchased simultaneously, permanent fixtures spanning multiple titles, and assets legally required to be dealt with together. Understanding these nuanced rules is critical to avoid serious compliance, tax, and duty implications.

Recent legislative changes have restricted how self-managed superannuation funds can use limited recourse borrowing arrangements, particularly for residential property acquisitions. Business owners and primary producers may still leverage these arrangements to acquire commercial premises and farming land through their SMSFs. Understanding the new definition of business real property and available investment options is crucial for SMSF trustees navigating these regulatory changes.

The Full Court of the Federal Court has clarified critical procedural requirements for employers managing medical incapacity terminations and defending general protections claims. This landmark decision addresses when workplace relations advisers must give evidence in proceedings and whether show cause letters constitute unlawful threats under the Fair Work Act.

The High Court's decision in Helensburgh Coal Pty Ltd v Bartley & Ors examines whether employers must consider restructuring their workforce arrangements, including labour hire and outsourcing, when assessing redeployment options during redundancies. This landmark ruling clarifies the Fair Work Commission's authority to scrutinize operational decisions and workforce composition when determining if a dismissal constitutes genuine redundancy under the Fair Work Act 2009.

A recent Full Bench decision confirms that employers cannot rely on genuine business reasons alone to justify redundancy dismissals. Even when workforce reductions are commercially necessary, failure to conduct meaningful consultation with affected employees can result in unfair dismissal findings and substantial compensation awards, regardless of business size.