Don’t Mess with the NES… Or Is It Time for Reform?

| April 15, 2026

Readers may be aware of the Government’s House of Representatives Standing Committee on Employment, Workplace Relations, Skills and Training (Committee) inquiry into the operation and adequacy of the National Employment Standards (NES) under the Fair Work Act 2009 (Cth).

The Committee’s inquiry, titled Inquiry into the operation and adequacy of the National Employment Standards (Inquiry), commenced in November 2025 following a referral from the Minister for Employment and Workplace Relations, Hon Amanda Rishworth MP.

The purpose of the Inquiry is to assess whether the NES remains fit for purpose, having regard to changing labour market conditions, evolving work patterns, and demographic shifts.

Scope of the Inquiry

The terms of reference identify several key areas for consideration, including:

• the objective and purpose of the NES as part of the safety net framework, as well as individual NES entitlements;
• the extent to which the NES is fit for purpose, having regard to the changing nature of work;
• the role of the NES in promoting the objects of the Fair Work Act set out in section 3;
• the adequacy, relevance and coherence of existing NES entitlements;
• the effectiveness and application of the NES, including opportunities for technical improvements;
• the interaction between the NES and other workplace instruments, including modern awards, enterprise agreements, and individual flexibility arrangements; and
• the types of workers covered by the NES, including differences in experience among women, workers over 55, young workers, First Nations workers and workers with disability.

Watch our recent IRiQ Talking IR vlog, where Rebecca, Joanna and Terrianne discuss the Parliamentary Inquiry into whether the National Employment Standards remain fit for purpose, including key submissions and what to expect next.

Submissions Received

Submissions from interested parties have now been received, with more than 110 submissions from individuals, unions, employer organisations and academics raising a wide range of issues for the Committee to consider.

A snapshot of submissions from several key parties is outlined below.

Union Perspectives

The Australian Council of Trade Unions (ACTU) has advanced a number of proposals aimed at strengthening the NES safety net. Among these is a proposal to reduce the statutory maximum weekly hours from 38 to 35 hours, which it characterises as a step towards broader changes to working time arrangements, including a potential transition to a four-day working week.

The ACTU has also advocated for expanded leave entitlements, including increasing annual leave from four to five weeks per year. Several union submissions have also highlighted perceived gaps in the current leave framework, particularly in relation to reproductive health conditions.

For example, the Independent Education Union has supported the introduction of a dedicated reproductive health leave entitlement, noting that conditions such as menopause, endometriosis and fertility treatment can have significant workplace impacts. It argues that a standalone entitlement would promote gender equity and workforce participation.

More broadly, unions have submitted that the NES should evolve to address emerging workplace challenges, including changing work patterns, increased caring responsibilities, and the needs of a more diverse workforce.

Employer and Industry Perspectives

Employer organisations and industry groups have generally adopted a more cautious approach to reform. While many support the continued role of the NES as a universal safety net, they emphasise that any review should focus on clarity and operational practicality, rather than expanding statutory entitlements.

The Australian Resources and Energy Employer Association (AREEA), for example, has argued that the review should not be used as a vehicle for introducing new regulatory obligations. Instead, it advocates for modernising and simplifying the framework, including clarifying how the NES interacts with modern awards and enterprise agreements.

AREEA also identifies several areas where the NES creates compliance challenges, including uncertainties around how a “day” of personal or carer’s leave should be calculated, requirements relating to public holiday work in continuous operations, and the complexity of long service leave arrangements across jurisdictions.

Similarly, the Business Council of Australia has submitted that the effectiveness of the NES depends on how easily it can be interpreted and applied in practice. It argues that unnecessary complexity can undermine productivity, innovation and business growth.

The Small Business Organisations Australia has also expressed concern that the review is ill-timed, citing the operational burden that recent industrial relations reforms pose to small businesses. It has called for a period of consolidation, simplification and education before further changes are introduced.

A Divided Path Forward

Unsurprisingly, there is a clear divide between submissions on the future direction of the NES. While the current Labor Government has demonstrated a willingness to pursue industrial reform, it remains to be seen whether further changes to the NES will be pursued as part of this process.

Next Steps for the Inquiry

Public hearings have commenced, with witnesses appearing to give evidence in support of their submissions and positions on the operation of the NES.

At the public hearing on 26 March 2026, representatives from the Department of Employment and Workplace Relations and the Fair Work Ombudsman appeared before the Committee.

Notably, the Fair Work Ombudsman identified the top five NES-related issues generating enquiries:

• annual leave;
• public holidays;
• notice of termination;
• personal/carer’s leave; and
• redundancy.

The next hearing is scheduled for 1 May 2026, with the program and witness list yet to be released.

Further information about the Inquiry can be found on the Committee’s webpage HERE.

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