On 13 March 2026, Australian Industry Group made a submission to the Commonwealth Government's House of Representatives Standing Committee Inquiry into the operation and adequacy of the National Employment Standards (NES) under the Fair Work Act 2009 (Cth) (Fair Work Act).

Our submission identifies 35 opportunities for technical change and other improvements to the NES. We do not however support any dramatic changes to the NES, whether by way of expansion or diminution of the current entitlements of employers and employees contained therein, or any expansion to the types of workers who should receive entitlements under the NES. Our proposed improvements are sensible and modest changes that align with the need to have a stable and cohesive NES platform for both employers and employees.

Related request for the action on impractical NES requirements regarding payments in lieu of notice

Annexed to this submission is a letter from Mr Innes Willox, Chief Executive of Australian Industry Group, sent late last year to the Hon Amanda Rishworth MP, Minister for Employment and Workplace Relations. The correspondence raises a key concern also addressed in our submission in relation to payments on termination of employment under the Fair Work Act.

Currently, there is significant concern over the impracticality, for various reasons, of section 117 of the Fair Work Act, which prohibits an employer from terminating an employee's employment until they have either been provided with a period of notice as contemplated under the Fair Work Act or received payments in lieu of notice. This is inconsistent with modern payroll arrangements which facilitate such payments being at a later point by an electronic funds transfer, in contrast to historical practices of providing a final termination payment in cash on the last day of work.

Through our correspondence, we have proposed removing the prohibition under section 117(2) on terminating an employee's employment until certain payments are made and to instead replace it with clear and comprehensive requirements to pay both the amounts specified in section 117(2)(b) and any NES entitlements that arise on termination within an alternate appropriate timeframe.

Members wishing to discuss either of the above matters are encouraged to contact the Australian Industry Group workplace relations policy team at WRConsultation@australianindustrygroup.com.au