Key Employment Law Changes Businesses Need to Prepare for in 2026

Australia’s employment law landscape continues to shift and 2026 will bring several significant changes for employers. For businesses, the priority is not just awareness but preparation -ensuring payroll, policies and people processes are compliant prior to the commencement dates.

Below are four major workplace changes to watch, and practical steps businesses can take now to get ready.

1. Payday Super Is Coming

From 1 July 2026, employers will be required to pay superannuation at the same time as employees are paid wages or salaries. This replaces the current quarterly super payment system.

What’s changing?

• Super must be paid within seven days of each pay run

• Quarterly payments will no longer be compliant

• Penalties will apply immediately if payments are late

  
  

Exceptions

Some payments will be excluded, including:

• Payments to new employees in their first two weeks

• Irregular or off-cycle payments, such as one-off bonuses or expense reimbursements

If an employer misses the deadline, the Superannuation Guarantee Charge will apply from the next day, with daily compounding interest.

How businesses can prepare

• Review payroll and super processes to reduce errors and “bounce backs”

• Audit Single Touch Payroll (STP) codes for accuracy

• Confirm payroll software and clearing house readiness

• Plan for the cash flow impact of more frequent super payments

• Review contractor arrangements to ensure alignment with payroll processes

  
  

Clear communication with employees, including updated payslips, FAQs and guidance on super fund details, will also help manage the transition.

2. Gender Equality Target-Setting for Large Employers (500+ Employees)

From April 2026, employers with 500 or more employees will be required to select and work towards gender equality targets.

What’s required?

• Employers must select three targets from a prescribed list

• Targets include a mix of numerical goals and action-based initiatives

• Once selected, targets cannot be changed or abandoned

  
  

How businesses can prepare

Before setting targets:

• Analyse workforce and pay data to identify key problem areas

• Assess which targets are realistic and achievable within the timeframe

• Ensure senior leadership understands and supports the commitments

  
  

3. Changes to Paid Parental Leave

Further changes to the government-funded Paid Parental Leave (PPL) scheme will take effect from 1 July 2026.

What’s changing?

• Eligible parents will be able to access up to 26 weeks of PPL

• This is an increase from 24 weeks in 2025 and 22 weeks in 2024

• Each parent in a couple will have four weeks reserved on a “use-it-or-lose-it” basis

• Single parents will receive the full 26 weeks

  
  

How businesses can prepare

• Review and update parental leave policies

• Ensure payroll systems can manage extended leave periods and super contributions

• Plan for longer absences and workforce coverage

  
  

4. National Employment Standards (NES) Review Outcomes

In late 2025, the federal government commenced the first full review of the National Employment Standards (NES) since the Fair Work Act was introduced in 2009.

While outcomes are not yet final, the review could lead to significant changes for businesses’.

Possible changes under consideration include:

• Increasing minimum annual leave from 20 to 25 days

• Stronger redundancy entitlements

• Changes to small business exemptions

• New redundancy considerations for technology-driven job losses, including AI

How businesses can prepare

• Monitor the progress of the NES review closely

• Review existing leave accruals, employment contracts and policies

• Identify potential cost and compliance exposure if changes are introduced