Worldwide: Employee Rights/ Labour Relations

A redundancy can expose your business to legal risk, particularly where an employee disputes whether the redundancy was genuine. While employers cannot require employees to waive their minimum statutory entitlements, they may choose to offer additional benefits in exchange for greater certainty. One way of achieving this is through a deed of release.

The Albanese Government has released draft legislation that would fundamentally reshape how Australian employers use restrictive covenants and competitive agreements. The proposed Competition and Fair Work Legislation Amendment (Banning Unfair Non-Competes) Bill 2026 seeks to prohibit or strictly regulate no-poach agreements, wage-fixing arrangements, non-compete clauses, and co-worker non-solicitation terms.

Victorian laws now restrict how Non-Disclosure Agreements can be used in workplace sexual harassment cases, introducing six mandatory preconditions that employers must meet before an NDA can be validly entered into. These new protections aim to address power imbalances and prevent employees from being coerced into silence, while giving workers the right to terminate NDAs after 12 months and speak to police, medical professionals, and lawyers without breaching confidentiality.

A creditor-supported restructuring of Believe Early Learning preserved regional childcare centres in Eaglehawk and Mooroopna, protecting jobs and delivering materially better outcomes than liquidation. The case demonstrates how voluntary administration can address the sector's simultaneous growth in demand and pressure on capacity, while navigating workforce constraints, regulatory obligations, and unsustainable financial structures.

When workplace investigations arise, the choice of investigator can determine whether the process builds trust or creates further complications. Understanding the essential qualities that make an investigator effective—from independence and legal expertise to empathy and credibility—is crucial for employers navigating sensitive workplace matters.

Australian courts are increasingly examining whether the Fair Work Act applies to employees working entirely overseas. A recent Fair Work Commission decision reveals that jurisdiction may hinge not on where an employee performs their duties, but on the technical question of where the employment contract was legally formed—with significant implications for employers managing remote and offshore workforces.

The New South Wales Court of Appeal has delivered a significant ruling on employer liability for medical devices not included on the Commonwealth Prostheses List. When an injured worker requires reasonably necessary treatment involving unlisted prostheses, does the absence from a regulatory list automatically relieve the employer of payment obligations, or does the fundamental statutory duty to cover necessary medical treatment prevail?

The Federal Circuit and Family Court of Australia has issued a stark warning about the dangers of relying on generative AI in litigation, particularly for self-represented litigants. In Ba v Sterling Parts Australia Pty Ltd, the Court dismissed a claim after the applicant failed to produce documents referenced in his evidence list, which appeared to be AI-generated fabrications.

The Fair Work Ombudsman has launched Federal Court proceedings against an IGA franchisee in regional NSW, alleging systematic underpayment of a Nepalese visa holder and falsification of records to conceal the violations. The case highlights how wage compliance failures can trigger both Fair Work penalties and immigration sponsorship breaches, with directors facing personal liability for their involvement in the alleged contraventions.