A major independent review of the Federal Government’s Closing Loopholes workplace reforms has recommended a series of changes that could further reshape enterprise bargaining, domestic violence leave, and labour hire regulation for Australian businesses.

The 461-page draft report, prepared by former Fair Work Commission member examines the operation of the two Closing Loopholes Acts after their first two years in force. The review also separately assessed the operation of paid family and domestic violence leave provisions introduced in 2022.

While the review found many of the reforms are operating largely as intended, it also identified areas where additional legislative clarification, procedural safeguards and operational improvements may be required.

For employers, the report provides an important indication of the direction future workplace relations policy may take.

Intractable bargaining laws remain under scrutiny

One of the most closely watched parts of the review concerns the intractable bargaining framework.

The intractable bargaining provisions allow the Fair Work Commission to intervene in stalled enterprise bargaining disputes and, in some circumstances, arbitrate outcomes where parties cannot reach agreement.

According to the review, these provisions have become highly contentious among employer groups and unions alike.

Employer associations argued the framework has significantly altered bargaining dynamics and may discourage productivity-focused reform during negotiations. Concerns were also raised that the “no less favourable” test limits the Commission’s ability to modernise enterprise agreement conditions where changes could otherwise benefit businesses operationally.

However, the review concluded that the existing test is operating consistently with Parliament’s intent – namely, ensuring employees are not left worse off following arbitration outcomes. 

Rather than recommending removal of the framework, the review instead proposed introducing stronger guardrails before an intractable bargaining declaration can be made. 

Under the recommendation, the Fair Work Commission would be required to consider factors such as: 

• whether parties genuinely engaged in constructive bargaining;  
• whether either party deliberately held out for arbitration;  
• whether productivity and fairness issues were properly addressed during negotiations; and  
• the overall conduct of bargaining representatives.  

For employers, this signals that enterprise bargaining conduct itself may become increasingly important if disputes escalate to arbitration processes. 

Paid domestic violence leave may become easier to access

The review also examined Australia’s paid family and domestic violence leave framework, which currently provides employees with 10 days of paid leave each year under the National Employment Standards. 

A significant focus of the review was the evidentiary burden placed on employees when accessing leave. 

The report found current evidence requirements may risk “re-traumatising” victim-survivors where requests for documentation become excessive, intrusive or repetitive. 

As a result, the review recommended lowering the threshold required for employees to access leave. Under the proposed approach, employees would only need to establish they are unable to work because of family or domestic violence, without disclosing detailed information about the violence itself or related personal circumstances. 

The review did not recommend increasing the current 10-day entitlement, finding there is not yet sufficient evidence to justify expansion to 20 days or more. 

However, it did recommend broadening the definition of family and domestic violence to capture a wider range of relationships, including: 

• extended family members;  
• former household members;  
• former in-laws and related family relationships; and  
• kinship relationships recognised through cultural or religious practices. 

For businesses, these recommendations reinforce the importance of maintaining trauma-informed leave processes, ensuring confidentiality obligations are met, and training managers act appropriately in handling sensitive requests.

Labour hire and “same job, same pay” reforms may expand further 

The review also considered the regulated labour hire arrangement framework – commonly referred to as the “same job, same pay” laws. 

Recommendations included improving access to labour hire orders for vulnerable worker cohorts, particularly: 

• regional and remote workers;  
• women;  
• First Nations workers;  
• migrant workers;  
• workers with disability; and  
• younger employees. 

The report also recommended continued monitoring of Fair Work Commission resourcing to ensure labour hire applications can be dealt with efficiently as the framework becomes more widely used.

For employers relying heavily on labour hire arrangements, this may indicate increasing scrutiny of pay parity arrangements and workforce structures over the coming years.

Gig economy and deactivation issues also highlighted

Another area identified for urgent attention was the handling of unfair deactivation matters involving gig economy workers and digital platform businesses. 

The review recommended legislative clarification around evidentiary thresholds in serious misconduct deactivation cases, reflecting ongoing uncertainty in this emerging jurisdiction. 

Businesses operating in platform-based or independent contractor-heavy environments may wish to monitor developments closely as the regulatory framework continues to evolve. 

What businesses should expect next 

Importantly, the review is still in draft form.

Additional submissions have been invited before the final report is delivered to Workplace Relations Minister Amanda Rishworth in June 2026.

While not all recommendations will necessarily become law, the report provides a strong indication that further refinement of the Closing Loopholes reforms remains likely. 

For employers, key priorities should include: 

• reviewing enterprise bargaining strategies and documentation practices; 
• ensuring domestic violence leave policies are trauma-informed and legally compliant;
• assessing labour hire arrangements and pay parity risks;
• monitoring developments in gig economy regulation; and
• preparing managers and HR teams for continued workplace relations reform activity.

As the workplace relations landscape continues to evolve, businesses that proactively review compliance frameworks and workforce strategies will be better positioned to manage legal risk and operational disruption.