What it means for employment law and the contingent workforce
The re-election of the Labor Party in Australia in 2025 marks a pivotal moment in the country's political landscape. Known for their close ties to the labour movement and emphasis on social justice, the Labor Party's return to power is expected to bring about further changes, particularly in the realms of employment law and the contingent workforce.
Employment law reforms
One of the most anticipated areas of change under a Labor government is employment law. The Labor Party has historically championed workers' rights, and their re-election is likely to lead to a series of amendments aimed at strengthening these protections. These reforms are particularly important for organisations relying on labour hire and contractor models, as they signal a shift toward more robust compliance and workforce accountability.
Fair Work Act revisions
The Fair Work Act, which serves as the cornerstone of employment law in Australia, is expected to undergo further revisions. Labor has pledged to enhance job security, ensure fair wages, and improve working conditions. Key changes may include:
- Stricter regulations on casual employment
- Expansion of Same Job, Same Pay laws, broadening enforcement to host employers using labour hire arrangements that undercut enterprise agreements. – requiring clients to ensure suppliers are compliant with applicable wage instruments and role classifications
- Increased penalties for wage theft, with Labor committing to further criminalising wage theft and increasing penalties for non-compliance
- More robust mechanisms for resolving workplace disputes
How Guidant Global helps you stay compliant
Our MSP programs help clients stay ahead of these changes by:
- Conducting supplier and classification audits
- Monitoring wage compliance and role mapping
- Managing off-panel risk and labour hire license checks
- Supporting real-time data capture across your entire contingent workforce
Minimum wage increases
Another likely policy shift is the increase in the minimum wage. Labor has consistently advocated for better living standards for low-income workers, so will likely push for higher minimum wages to help bridge the gap between earnings and the cost of living.
Impact on the contingent workforce
The contingent workforce, comprising temporary, part-time, and contract workers, is poised to experience significant changes under a re-elected Labor government. These workers, who often lack the security and benefits of permanent employment, stand to benefit from Labor's focus on improving job stability and working conditions.
- Better access to benefits
One of the key challenges for the contingent workforce is access to benefits such as paid leave . Labor's re-election could lead to reforms that extend these benefits to part-time and contract workers, ensuring that they receive the same entitlements as their full-time counterparts.
- Workplace health and safety
Another critical area of focus is workplace health and safety. Labor is expected to introduce stricter safety standards and enhance enforcement mechanisms to protect all workers, including those in contingent roles. This may involve more frequent inspections, higher penalties for non-compliance, and greater support for workers' compensation claims. Host employers will need to demonstrate WHS coverage extends to all worker types, including labour hire and casual workers. Guidant Global programs integrate supplier WHS compliance into onboarding, track safety certifications, and provide audit-ready reporting aligned to Fair Work and WHS regulations.
- Increased focus on job security
Labor's policies are likely to emphasise the importance of job security across all forms of work, including contingent roles. While the reforms aim to reduce insecure or exploitative arrangements, they also present an opportunity to elevate the value of flexible work by ensuring fair treatment, compliance, and access to entitlements. With the right workforce model, businesses can continue to benefit from agile, project-based roles while protecting the people who fill them — and MSPs like Guidant Global make this possible through built-in governance, supplier alignment, and real-time visibility.
By working with an MSP like Guidant Global, businesses can improve workforce visibility, optimise cost, and mitigate legal exposure — all while retaining access to high-quality contingent talent.
Additional reforms expected:
- Expanded union and bargaining rights: Multi-employer bargaining may increase union presence across labour hire-heavy industries. Platform and gig worker regulation: Businesses engaging freelance or app-based labour will need to meet new minimum conditions, such as extending access to the Fair Work Commission for dispute resolution.
- Tightened casual and contractor rules: Expect increased compliance audits and legal exposure for misclassified engagements — especially in sectors using large contingent pools.
Broader economic implications
Labor's re-election is expected to have economic implications through their policies on taxation, infrastructure, and social services. With a focus on the cost of living, their approach to taxation aims to ensure corporations and high-income earners contribute fairly by closing tax loopholes, increasing corporate tax rates, and introducing new taxes on wealth and capital gains to generate revenue for public services and infrastructure projects. Labor plans to invest heavily in infrastructure, funding projects like public transportation, renewable energy, and affordable housing to stimulate economic growth and create jobs. Their commitment to social justice also includes increased funding for education, healthcare, and social welfare programs.
As Australia embarks on this chapter under Labor's leadership, the impacts of these changes will shape the future of work and the lives of workers across the country. Now is the time to reassess your labour engagement strategy. MSP partners like Guidant Global are uniquely positioned to help you navigate this evolving landscape — providing compliance assurance, supplier governance, and future-ready workforce models.
