Fair Work Ombudsman Advises Underpayments Spiked 27%

The Fair Work Ombudsman (FWO) has announced that underpayments have spiked 27% in a year. 

The FWO revealed it had recovered in excess of $450 million in unpaid wages and entitlements for more than 181,000 workers in 2025-26, up 27% on the previous financial year.

• Have you reviewed your salaried employees’ arrangements to confirm they are compliant?
• Are you classifying your employees correctly under the Award?
• Do you clearly understand the terms and conditions of employment under the Award?

Contact us if you have any questions about compliance. Employers often make inadvertent mistakes that can end up becoming expensive down the track.

Under-18s Superannuation Inquiry

The Senate in August referred Senator Barbara Pocock's Superannuation Legislation Amendment (Fair Super for Young Workers) Bill 2026 to the Economics Legislation Committee for an inquiry.

The Bill aims to remove the exclusion that enables employers to only pay young workers superannuation if they work more than 30 hours a week.

Submissions to the inquiry have closed and the committee is due to report on 17 November 2026.

Update on Non-Compete Clause Ban

The Business Council of Australia and the Australian Industry Group have lodged submissions to Treasury’s consultation on the proposed laws.

The Government’s proposed legislation to prohibit non-compete clauses in employment contracts will limit productivity rather than improve it, and the changes should be dropped or ‘substantially’ overhauled, employer groups claim.

These changes, if they become law, will have a significant impact on employers. Although the Bill is presently subject to consultation and debate in parliament.

If passed, the Bill will take effect on January 1, April 1, July 1 or October 1 next year, whichever comes first after the day it receives Royal Assent.

Changes to the Health Services Award

The Fair Work Commission (the Commission) has changed the Health Professionals and Support Services Award (Health Services Award) as part of its Gender-based undervaluation – priority awards review.

The Commission has changed the Health Services Award over multiple decisions, including:

• from 1 April 2026, changes for some support services employees
• from 1 October 2026, changes for health professionals.

SCHADS Pay Rises Deferred

A 5-member FWC bench has agreed to push back 15% gender-undervaluation pay rises for disability home care workers by 2 months - December 1 2026, after weighing doubts about government funding and feedback from employers.

The expert panel headed by Justice Adam Hatcher in June, provisionally approved a ‘vastly different’ Social, Community, Home Care and Disability Services Industry Award (SCHADS Award), with new classifications from October 2027 and pay rises of up to 27% for most disability, home care, social and community services workers.

The panel invited comment on its view that workers should get an interim 15% pay rise on October 1 2026.After considering responses, the panel agreed to push back the 15% increase for disability home care workers to December 1, ‘given the absence of any commitment by the Commonwealth Government regarding funding’.

The Government has since advised they will approve $630 million to fund pay rises to support charities and not for profit organisations that deliver Government programs. The funding will also support Government-funded organisations that employ workers in other sectors affected by the award changes.

The panel otherwise said that a final determination on October 2027 pay rises, would be published closer to the operative date, ‘updated for any changes arising from the 2027 Annual Wage Review’.

A 5-member expert panel in April 2025, ruled that workers on a wide range of classifications under 5 Awards had been subject to gender-based undervaluation, signalling that pay rises of up to 35% would flow from the decision.

Independent Contractors

Independent contractors work for themselves by providing services to another person or business. Independent contractors are different from employees and don’t have the same rights and obligations. Independent contractors are also called contractors or subcontractors.

For constitutionally covered businesses, the test for working out whether someone is an independent contractor or employee changed from 26 August 2024.

When an employee is incorrectly told they are a contractor, this can be sham contracting. Sham contracting is illegal.

If you employ independent contractors, we recommend you read the information on the Fair Work Ombudsman website.

Please contact us if you require any assistance.