Beyond Compliance – Navigating a Changing IR Landscape with Purpose
While the 2024/25 industrial relations (IR) landscape has seen fewer headline grabbing legislative introductions compared to previous years, the ripple effects of prior reforms continue to be felt. Several significant changes passed in recent years are now coming into force, requiring employers to adapt and implement new compliance measures.
A defining theme this year is the continued swing toward employee rights. Decisions from the Fair Work Commission (FWC) increasingly favour employee entitlements – even in cases that seem to defy common sense. One recent matter involved a compensation claim featuring a puppy, a rabbit, and a pet fence across a home office doorway. The claim succeeded.
We’re also seeing a statistical shift. Unfair dismissal and general protections claims are rising, with a concerning 95% of unfair dismissal cases now settling at conciliation – up from 89%. Given there’s no initial merit test, many employers feel pressure to make a “commercial decision” and end up offering ex gratia payments simply to make claims go away. Unfortunately, the FWC system is designed and incentivised this way.
Industrial Relations
On a more encouraging note, some of the feared disruptions from major reforms – such as the Closing the Loopholes Bill – have not fully materialised. Apart from the “same job, same pay” labour hire changes, uptake of new employee claim rights has been slower than expected.
Amid the complexity, one trend gives us hope. More business leaders are stepping beyond compliance. Rather than getting lost in red tape, they’re choosing to lead with values and purpose – building strong cultures, investing in relationships, and creating workplaces people want to be part of.
Industrial relations reform will keep evolving. But the businesses best positioned for success will be those that focus not just on what they must do, but on what they should do – to lead with purpose and ensure their people and their business thrive together.
By Alistair Green – Focus HR
