What's on the horizon for HR in 2026?

Business people entering and exiting an office building through revolving doors. The photo is intentionally somewhat blurry, so that the focus is not on their faces and individual attributes, but rather that they are a cross section of office workers.

As 2026 gets underway, the employment law landscape continues to shift in ways that matter for every HR and legal team. Courts and regulators have sharpened expectations around employee record keeping and pay, redundancies and psychosocial risks, restraints of trade, superannuation timing and calculation, parental leave, gender equality reporting, the use of non-disclosure agreements (NDAs) in sexual harassment matters and employer responses to sexual harassment. Below is our guide as to what’s changed, why it matters and our checklist of practical steps employers should be taking now.

Issue	Overview	Action required by employers
Record keeping and set‑off: precision over convenience	Employers should not assume they can average entitlements across pay periods or rely on broad set‑off clauses to cure underpayments in any period. In Fair Work Ombudsman v Woolworths Group Limited & Ors [2025] FCA 1092 (Supermarkets Decision) a single judge of the Federal Court held that the Fair Work Act 2009 (Cth) limits contractual set‑off to the relevant pay period and emphasised that roster/clock data alone is not enough and records must be readily accessible and show how entitlements are calculated for each employee for each period. This was despite a previous Full Federal Court decision in Corporate Air Charter Pty Ltd v Australian Federation of Air Pilots [2025] FCAFC 45, which accepted an annualised contractual set‑off on its terms, and other authorities have recognised broader attribution in some contexts. We also expect challenges to the Supermarkets Decision and further guidance on the interaction between these decisions, including whether (and when) annual or longer‑period reconciliation can lawfully operate under well‑drafted contractual clauses or award or enterprise agreement provisions. Looking ahead, we also expect an increase in audits and enforcement from the Fair Work Ombudsman, with a focus on digital record-keeping systems and the accuracy of payroll data. Regulators may issue further guidance on best practices for maintaining compliant records.	Reconcile each pay period against the applicable instrument and top up any shortfalls as offsetting outside pay periods may not be effective. Consider lawful alternatives such as annualised wage arrangements, individual flexibility arrangements or annual earnings guarantees. Keep unified, accessible records that can be produced on request. For casuals, record both hours and the loading component of pay.
Redundancy and psychosocial risk: the process matters	In addition to the obligations from an unfair dismissal perspective, employers must now consider all reasonable redeployment options for employees at risk of redundancy, including roles currently filled by contractors, casuals, or fixed-term staff. Recent cases have highlighted the need for thorough consultation and support during restructures, as poorly managed processes can lead to claims of psychological injury and regulatory intervention. Employers are also expected to assess and manage psychosocial risks, such as stress and anxiety, associated with organisational change. We expect health and safety regulators to scrutinise redundancy processes more closely, particularly the adequacy of consultation, notice periods and support for affected employees. There may be new requirements for documenting psychosocial risk assessments and controls during restructures.	Assess all possible redeployment options, including those involving contractors or lower-level roles. Conduct formal risk assessments for psychosocial hazards. Provide adequate notice and support. Use clear, non-finalistic language in communications with staff.
Post‑employment restraints: reform is coming	The Federal Government is proposing major reforms to post-employment restraints, including a likely ban on non-compete clauses for employees earning below the high-income threshold (currently $183,100 per annum), with limited exceptions. There is also a focus on tightening rules around no-poaching and wage-fixing agreements, as well as reviewing non-solicitation clauses that may act as de facto non-competes. Draft legislation and regulatory guidance are expected in time for implementation in 2027. Employers should anticipate that some restraint provisions may become unenforceable and should update contracts now as the changes may not be retrospective.	Review and narrow restraint clauses in employment contracts. Strengthen confidentiality and intellectual property protections.
Superannuation: new calculation and payment rules	From July 2026, employers must pay superannuation contributions at the same time as wages, with payments required to reach employees’ super funds within seven business days of payday. The contribution rate will increase to 12 per cent of Qualified Earnings, which includes ordinary time earnings, salary sacrifice, and other amounts currently counted for superannuation guarantee purposes. Late payments will attract the super guaranteed charge and penalties. The ATO and Treasury are expected to provide further guidance on the definition of Qualified Earnings and the practicalities of payday super implementation. Employers should monitor for updates and be ready to adjust payroll systems as needed.	Update payroll cycles and clearing house processes to ensure timely super payments. Confirm that super is calculated on the correct earnings base. Test payroll configurations well ahead of July 2026.
Gender equality: targets and transparency for large employers	From 2026, large employers (500+ employees) must set, achieve, or improve measurable gender equality targets and report progress to the Workplace Gender Equality Agency (WGEA). Employers that fail to meet or improve on targets within three years, without a reasonable excuse, may be publicly named and become ineligible for government contracts. WGEA is expected to issue further guidance on acceptable targets and reporting standards and there may be moves to expand requirements to smaller employers in the future.	Conduct a gap analysis of workforce composition, pay equity, and flexibility. Set appropriate targets. Ensure systems can collect and report accurate data. Regularly review progress.
Non‑disclosure agreements in Victoria: new limits in harassment matters	From June 2026, strict limits apply to NDAs in workplace sexual harassment matters in Victoria. NDAs will only be enforceable if the complainant requests it, receives an information statement, has at least 21 days to consider (unless waived), and confirms no pressure was applied. NDAs must be in plain language and cannot restrict disclosures to certain individuals or bodies. Complainants may terminate an NDA after 12 months. Other states and territories may introduce similar restrictions and there could be national harmonisation of NDA rules in sexual harassment cases.	Update settlement templates and processes. Train HR and legal teams on the new requirements. Remove contract clauses that impede lawful disclosure.
Sexual harassment: higher damages, stronger expectations	Courts have awarded record damages in sexual harassment cases, reflecting a tougher stance on workplace misconduct and a recognition of the serious and lasting impact on victims. Awards now include substantial general and aggravated damages, as well as compensation for victimisation and economic loss. We expect more proactive enforcement, higher penalties and possible new legislative changes to strengthen protections and remedies for victims.	Review and update workplace policies. Deliver regular training on expected behaviours. Ensure clear and trusted reporting pathways. Act promptly on complaints.

Insights