The Australian workplace relations landscape has undergone rapid change over the past two years, driven by ambitious reforms from the federal government, including the prohibition of pay secrecy clauses and new protections for vulnerable casual workers. In 2026, Queensland employers are facing a fresh series of significant national legislative updates. These changes will affect payroll, employment conditions, workplace safety, and broader human resources practices, with a particular focus on industrial relations reforms. 

Understanding and preparing for these changes is crucial to maintaining compliance, protecting employees, and reducing organisational risk. 

This article provides a detailed overview of the key legislative changes and national workplace trends employers need to know about this year. 

Legislative changes 

Payday superannuation 

From 1 July 2026, the ‘Payday Super’ system will replace the current quarterly superannuation payment model. Under this system, employers must make superannuation contributions to employee funds concurrently with wage payments. 

These contributions must be received by the employee’s super fund within seven calendar days of each payday. Exceptions exist for new employees during the initial waiting period. These changes are part of the ongoing superannuation guarantee reforms, which require employers to update payroll management processes and ensure compliance with new super contributions legislation. 

Why it matters: 

• Payday Super aligns superannuation contributions with wages, improving cash flow timing for employees and reducing delayed contributions. 
• Employers who fail to comply may face administrative penalties and potential reputational risk. 

Action items: 

• Review payroll systems to ensure they can process superannuation contributions on a per-pay-cycle basis. 
• Ensure payroll systems are updated to comply with the new superannuation guarantee rate and super contributions schedule. 
• Work with accounting or payroll providers to ensure systems are accurately configured. 
• Update employment agreements and internal payroll policies to reflect the change. 

Paid parental leave (PPL) expansion 

Effective 1 July 2026, the government-funded Paid Parental Leave (PPL) scheme will expand to 26 weeks. Employers should also note that superannuation on PPL payments has been mandated since 1 July 2025, meaning contributions must continue during paid leave periods from the Australian Taxation Office directly into employees’ superannuation accounts. 

Why it matters: 

• Extended PPL supports employee retention, gender equality in the workforce, and compliance with workplace obligations. 
• The expansion of parental leave also addresses sensitive topics such as leave following stillbirth or early infant loss, in line with recent government election commitments. 
• Employers are responsible for coordinating PPL payments if the employee elects. 

Action items: 

• Update internal PPL policies to reflect the increased entitlement and funding requirements. 
• Review employment contracts and employee communications to ensure clarity about leave and superannuation. 
• Ensure compliance with new parental leave regulations for cases of stillbirth or early infant loss. 

Annual minimum wage review 

The Fair Work Commission (FWC) conducts an annual mid-year review of the National Minimum Wage and Modern Awards, and any adjustments will take effect from 1 July 2026. Employers must factor these changes into budgeting, payroll, and employment agreements. 

Why it matters: 

• Failure to pay updated minimum wages or award rates can lead to underpayment claims, penalties, and reputational harm. 
• Wage adjustments may affect budgets, particularly in industries with a high proportion of award-reliant staff. 

Action items: 

• Stay informed about changes to award rates and classifications to ensure compliance with new regulations. 
• Audit payroll and award compliance to ensure all employees will receive correct rates from 1 July 2026. 
• Update employment contracts where necessary to reflect wage increases. 
• Review budgeting for wage costs in the second half of the year. 

Ban on non-compete clauses (proposed) 

Legislation expected to pass in 2026 will likely prohibit post-employment non-compete clauses for employees earning below the high-income threshold (~$175,000–$183,100), with the ban expected to take effect in 2027. The reforms aim to reduce unreasonable restrictions in employment contracts, particularly for employees under this income level.  

Why it matters: 

• Existing non-compete clauses in contracts may become unenforceable, creating potential risk for IP and client relationships. 
• Employers must shift to alternative protections that are legally enforceable. 

Action items: 

• Review all current employment agreements and identify non-compete clauses that may be affected. 
• Prepare to implement alternative safeguards such as confidentiality, non-solicitation, and IP clauses. 
• Update HR templates and onboarding materials to reflect changes. 

Model working-from-home (WFH) clause (proposed) 

The FWC is reviewing a model WFH clause for the Clerks-Private Sector Award in 2026. This follows research into flexible work arrangements, including eligibility, hours, equipment, and health and safety requirements. The model WFH clause will clarify how employers should respond to an employee’s request for flexible work arrangements. Under recent FWC rulings, employers must provide detailed and specific grounds – known as reasonable business grounds – when refusing such requests, especially where an enterprise agreement is in place. 

Why it matters: 

• Formalising WFH arrangements can improve productivity, engagement, and compliance with WHS obligations. 
• Early preparation allows businesses to integrate WFH policies smoothly and avoid disputes. 
• Significant changes to the work environment may be needed to accommodate WFH requests. 

Action items: 

• Assess current WFH arrangements, including hours, allowances, equipment, and privacy considerations. 
• Update internal policies and agreements to align with anticipated model clauses. 
• Train managers on oversight, reporting, and compliance obligations related to remote work. 
• Document reasons for refusal of employee requests for flexible work, ensuring they meet the standard of reasonable business grounds, and respond to casual employees’ requests for conversion to permanent status within 21 days. 

Major cases and other legislative amendments associated with the Fair Work Commission 

The Australian Government has launched an inquiry into the adequacy of the National Employment Standards (NES), the first comprehensive review since the Fair Work Act was introduced. This inquiry is open for public submissions until 27 February 2026 and is considering potential changes to several entitlements.  

There are also many significant cases before the Fair Work Commission which should be monitored. One of the most closely watched matters is the regulated labour hire arrangement case involving the Mining and Energy Union. If the Commission endorses stricter controls on labour hire under the Fair Work Act, employers using outsourced labour could face new compliance obligations, reshaping cost structures and workforce planning in mining and related sectors. 

Another area under review is award flexibility in hospitality and retail. Current proceedings explore variations to modern awards to accommodate evolving work patterns, including flexible scheduling and penalty rate adjustments. Should these proposals advance, 2026 could see a more adaptable award system, offering businesses greater agility while balancing protections for casual and part-time employees. 

The aged care work value case remains pivotal. With hearings spanning several years, the Commission is considering substantial wage increases for aged care workers across multiple awards. If implemented, these changes would not only elevate pay scales but also set a precedent for valuing care work more broadly – potentially influencing wage-setting in health and social services throughout 2026. 

Finally, broader initiatives addressing gender pay equity and junior rates are likely to gain traction. These cases aim to correct systemic undervaluation and modernise outdated classifications. Together, they point to a 2026 industrial relations environment with a sustained focus on fairness, flexibility, and recognition of essential work – requiring employers to prepare for compliance and strategic workforce adjustments. 

National trends shaping Queensland workplaces 

Psychosocial safety 

Employers face increasing scrutiny of psychosocial hazards, including workplace bullying, excessive workload, fatigue, and emotional harm. Recent changes to safety laws require persons conducting a business or undertaking to systematically identify, assess, and mitigate these risks as part of their legal obligations. In Queensland, this has included an increased requirement to manage the risk of sexual harassment through reasonable steps. In New South Wales, new work health and safety obligations will require employers to manage psychosocial risks from AI and algorithms in the workplace starting in 2026. 

Action items: 

• Conduct psychosocial hazard assessments and integrate findings into WHS management systems. 
• Identify the risk and prepare a sexual harassment prevention plan 
• Provide managers with training to identify, report, and respond to risks. 
• Implement clear escalation and reporting channels for employees. 

AI in HR 

The adoption of AI in HR processes – such as recruitment, rostering, and performance management – is rapidly increasing. Businesses must develop policies to manage ethical use, data privacy, bias, and human oversight. 

Action items: 

• Establish AI governance frameworks, including audits and bias testing. 
• Develop staff training programs covering AI tools and ethical considerations. 
• Create clear acceptable-use guidelines for AI in HR processes. 

Flexible work models 

Flexible and hybrid work arrangements are now mainstream. Businesses are crafting formal policies to manage hours, remote work, and ‘right to disconnect’ provisions. Flexible work models now include provisions for managing work related communications, particularly outside of normal working hours. The right to disconnect allows employees to refuse work-related communications outside of normal working hours unless unreasonable, and this right also became enforceable for small businesses on 26 August 2025. 

Action items: 

• Review and update workplace policies to support flexible work arrangements. 
• Clarify expectations for communication, availability, and performance. 
• Ensure remote work practices comply with safety, privacy, and industrial obligations. 

How Business Chamber Queensland can help 

The year 2026 brings significant legislative and workplace changes that will impact every Queensland employer. Many employers, including small businesses and those in higher education, are affected by the recent reforms and need to ensure compliance with new requirements. Navigating these updates – such as payday superannuation, expanded parental leave, and evolving workplace trends – requires careful planning and timely action. Businesses that proactively review their payroll systems, HR policies, and compliance frameworks will not only meet their legal obligations but also maintain employee trust and engagement. 

Business Chamber Queensland is here to support you every step of the way. Our Workplace Relations team provides: 

• Expert guidance: Clear advice on how new laws apply to your business, including practical steps for implementation and the management of legal risk. 
• Timely updates: Regular alerts and resources to keep you informed as legislation progresses and deadlines approach. 
• Policy reviews: Assistance in auditing and updating employment contracts, HR policies, and payroll processes to ensure compliance. 
• Training & education: Workshops and webinars to help managers and HR teams understand obligations and best practices. 
• Tailored support: One-on-one consultations for complex issues, including award interpretation, enterprise agreements, and workplace disputes.

By staying connected with Business Chamber Queensland, you gain peace of mind knowing your business is prepared for change, while freeing up time to focus on growth and employee wellbeing.