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FOCUS HR  |  IR July Update 2026
FOCUS HR  |  IR July Update 2026
Artificial intelligence is expected to fundamentally alter workplace litigation, 
increase application volumes and drive significant procedural reform within the Fair 
Work Commission.
AI tools are already enabling employees to draft claims, submissions and witness 
statements rapidly, while simultaneously creating concerns regarding fabricated facts, 
unrealistic (and incorrect) legal advice and low-merit claims.
The increasing use of AI is likely to continue driving both accessibility and procedural 
strain within the Fair Work system.
Industrial relations regulation is increasingly extending beyond traditional employment relationships into contractor 
arrangements, labour platforms and broader workforce ecosystems.
Future industrial relations reform is likely to continue targeting labour supply chains and employee-like forms of work.
When – Review commenced from November 2025 
A parliamentary inquiry was launched late 2025 to 
review whether the National Employment Standards 
(NES) remain fit for purpose for employers, employees 
and the modern Australian economy. 
The review represents one of the most significant 
reconsiderations of Australia’s statutory minimum 
employment standards framework in recent years and 
reflects growing debate regarding whether the NES 
adequately addresses modern workforce expectations, 
evolving employment models and changing social and 
economic conditions.
The inquiry attracted substantial submissions from 
unions, employer groups, professional associations 
and employee advocacy organisations, with many 
submissions focusing on whether the current NES 
framework sufficiently protects workers engaged in 
insecure, casual and non-traditional forms of work.
Employer-focused submissions consistently 
emphasised concerns regarding increasing 
regulatory complexity and compliance burdens, 
particularly for small and regional businesses. 
Several employer groups argued that significant 
expansion of minimum employment entitlements 
could disproportionately impact smaller 
businesses operating within tighter labour 
markets and narrower operating margins.
AI WILL RESHAPE THE FAIR WORK SYSTEM
REGULATION WILL CONTINUE EXPANDING BEYOND 
TRADITIONAL EMPLOYMENT
NATIONAL EMPLOYMENT STANDARDS REVIEW
Annual Leave
A significant focus of the review involved annual 
leave entitlements. The Australian Council of 
Trade Unions and several employee advocacy 
groups argued that the current four weeks of 
annual leave under the NES no longer reflects 
contemporary work pressures and mental 
health considerations. Submissions advocated 
increasing annual leave entitlements from 20 
days to 25 days per year. Employer groups, 
including the Australian Chamber of Commerce 
and Industry, opposed the proposal, raising 
concerns regarding labour costs, operational 
burden and productivity impacts.
The review also examined whether leave 
entitlements should accrue based on actual 
hours worked rather than notional hours, 
particularly for employees engaged in variable 
or irregular work patterns. Several submissions 
argued the current accrual framework 
disadvantages certain cohorts of workers, 
particularly those working irregular hours or in 
insecure employment arrangements.
Protections for Women and Working Parents 
Protections for women and working parents 
formed another major focus of the inquiry. 
Numerous submissions argued that the current 
requirement for employees to complete 12 
months of continuous service before accessing 
unpaid parental leave creates significant 
barriers, particularly for workers with 
interrupted or non-linear career pathways. 
Several submissions proposed reducing or 
removing the eligibility threshold entirely.
Reproductive Health-related Leave 
The review also considered growing calls for 
the introduction of reproductive health-related 
leave entitlements, including leave associated 
with menstruation, endometriosis, menopause 
and fertility treatment. 
Submissions argued that the existing NES 
framework does not adequately address these 
issues despite their substantial impact on 
workforce participation and productivity.
Carer Protections 
Carer protections also featured prominently 
throughout the inquiry. Various submissions 
advocated:
•	 creation of a standalone paid carer’s leave 
entitlement
•	 extension of paid carer’s leave to casual 
employees and
•	 expansion of the definition of “family” 
to include broader culturally significant 
relationships.
Long Service Leave 
The inquiry also considered longstanding 
concerns regarding Australia’s fragmented state-
based long service leave system. 
A number of submissions advocated for the 
introduction of a single national long service 
leave standard through the NES framework 
in order to reduce compliance complexity 
for employers operating across multiple 
jurisdictions.
Casual Entitlements
The review additionally examined concerns 
regarding casual and insecure work. 
Multiple submissions highlighted that casual 
employees remain excluded from several NES 
entitlements, including paid annual leave and 
paid personal/carer’s leave, despite the growing 
proportion of the workforce engaged in casual 
employment.

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