The Federal Government has introduced the Workplace Relations Legislation Amendment (Building Cooperative Workplaces No. 1) Bill 2026, the first significant workplace relations bill of the Government’s second term.
On 3 June 2026, The Bill was presented as a package of practical reforms designed to improve the operation of the workplace relations system, reduce pressure on the Fair Work Commission, and encourage enterprise bargaining. While many of the proposed changes are administrative in nature, several measures could have important implications for employers, particularly those engaging with Commonwealth procurement opportunities and enterprise bargaining processes.
Why has the Bill been introduced?
The Government argues that the Fair Work Commission is experiencing unprecedented workload pressures, driven by growing numbers of applications, increasing complexity of matters and the emergence of AI-assisted claims and applications. The Bill seeks to streamline processes, reduce unnecessary procedural steps and allow the Commission to focus its resources on resolving disputes more efficiently.
Several of the proposed amendments respond directly to concerns raised by the Commission itself about growing case volumes and delays in resolving workplace disputes.
Key reforms affecting employers
Changes to dismissal-related disputes
One of the most significant procedural reforms relates to dismissal disputes lodged under the general protections and unlawful termination provisions of the Fair Work Act.
Currently, following a 2020 Federal Court decision, the Commission is often required to conduct a separate jurisdictional process to determine whether a dismissal has actually occurred before it can deal with the substance of a claim.
The Bill removes this requirement and would allow the Commission to proceed directly to a conference aimed at resolving the dispute. The Government argues that this will reduce costs, shorten timeframes and remove an unnecessary procedural hurdle for both employers and employees.
For employers, this may mean that claims progress more quickly to conciliation and resolution, reducing legal costs associated with preliminary jurisdictional arguments.
Greater ability for the Fair Work Commission to determine matters on the papers
The Bill expands the circumstances in which the Commission may determine matters without conducting a formal hearing.
Where appropriate, the Fair Work Commission would be able to decide issues based on written submissions and evidence, potentially reducing delays and administrative burden.
Employers should expect an increased emphasis on the quality of written evidence and submissions provided to the Commission, as these documents may become increasingly important in determining outcomes.
Stronger powers to dismiss unmeritorious claims
The proposed reforms would provide the Commission with broader powers to deal with applications that are frivolous, vexatious or have no reasonable prospects of success.
Importantly, individuals whose applications have been dismissed on these grounds may be prevented from filing further applications of a similar nature. The reforms also extend these powers to unfair deactivation and unfair termination applications.
Many employer groups have welcomed these measures as a means of reducing misuse of Commission processes and improving efficiency.
Changes to supported bargaining
The Bill would allow supported bargaining processes to resume without requiring a fresh authorisation where an authorisation was issued within the previous two years.
The Government argues that this reform will reduce duplication, save time and lower costs for employers, employees and the Commission.
Enterprise agreements and Commonwealth procurement
Perhaps the most debated aspect of the Bill is a proposed exemption to the Fair Work Act’s anti-discrimination provisions.
The amendment would allow the Commonwealth to preference employers whose employees are covered by enterprise agreements when awarding government grants or procuring goods and services. The exemption would also permit preference for particular types of enterprise agreements, including agreements that cover employee organisations.
The Government has linked this measure to the development of the Secure Australian Jobs Code and broader efforts to encourage enterprise bargaining. According to the Explanatory Memorandum, the purpose is to allow enterprise agreement coverage to be considered as part of procurement and funding decisions without breaching existing discrimination provisions under the Fair Work Act.
What should employers do now?
The Bill has only recently been introduced into Parliament and may be subject to amendment during the legislative process. However, employers should begin considering the practical implications now.
Businesses that regularly tender for Commonwealth work should closely monitor developments regarding the proposed Secure Australian Jobs Code and any procurement preferences linked to enterprise agreement coverage.
Employers should also expect continued emphasis on enterprise bargaining as a key policy objective of the Government’s second term.
In the meantime, organisations involved in Fair Work Commission proceedings may welcome reforms aimed at reducing delays, simplifying processes, and enabling the Commission to focus on resolving disputes more efficiently.
What happens next?
The Building Cooperative Workplaces Bill 2026 is not a wholesale rewrite of Australia’s workplace relations system. Instead, it represents a targeted package of reforms focused on improving the efficiency of the Fair Work Commission and supporting the Government’s broader policy objective of increasing enterprise bargaining coverage.
While many of the changes are procedural, the proposed procurement and enterprise agreement provisions could have significant strategic implications for businesses seeking Commonwealth contracts. As the Bill progresses through Parliament, employers should remain alert to potential amendments and begin assessing how the reforms may affect their workplace relations and commercial strategies.
