Govt to Scrap 30-Day Rule and Ease Union-Related Rules for Employers

“This rule has created unnecessary complexity in the hiring process and imposed costs on employers that ultimately drag down productivity,” said Minister van Velden.

The Government has announced significant reforms to employment law aimed at promoting greater freedom of choice for workers while reducing administrative obligations for employers. Workplace Relations and Safety Minister Brooke van Velden unveiled the proposed changes this week, confirming that the Employment Relations Amendment Bill will be introduced later this year, with legislation expected to pass before the end of 2025.

At the centre of the reform package is the repeal of the so-called 30-day rule, a requirement introduced by the previous government that mandates new employees be placed on terms consistent with the applicable collective agreement for their first 30 days, regardless of whether they opt to join a union.

“This rule has created unnecessary complexity in the hiring process and imposed costs on employers that ultimately drag down productivity,” said Minister van Velden. “We are removing barriers to flexibility and allowing workers and employers to agree on employment terms that better reflect individual needs and preferences—right from day one.”

Key Reforms: Choice and Clarity for New Hires

Currently, when a workplace is covered by a collective agreement, new employees must initially be employed under conditions that mirror that agreement, even if they never join the union. Minister van Velden argues that this practice limits genuine choice and has contributed to confusion for both employees and employers.

Under the new legislation:

• The 30-day rule will be abolished, allowing employees to start work under individually negotiated terms immediately, regardless of union presence.

• 90-day trial periods will once again be available to all employers from the outset of employment if a worker chooses an individual employment agreement.

• The employer’s obligation to communicate union information will be significantly reduced. Employers will no longer be required to distribute material provided by unions or use the ‘active choice form’ introduced by the previous government.

However, core information will still be provided. Employers must continue to inform new hires that:

• They may join a union that is a party to the collective agreement;

• They can contact the union for more information;

• If they join the union, the collective agreement will apply to them.

Streamlining Union Communication

The proposed legislation also addresses what the Government sees as overly prescriptive and burdensome union communication requirements. Under current law, employers are required to pass along detailed union-provided material and ensure employees actively acknowledge receipt and decision-making regarding union membership—procedures introduced in recent years that critics say have placed a disproportionate burden on small and medium-sized businesses.

Minister van Velden said the changes will not eliminate workers' rights to union information, but will place the responsibility of initiating engagement more clearly in the hands of the employees, rather than employers acting as intermediaries.

“We are striking a fair balance—ensuring that employees know their union options without forcing employers into the role of union promoter or compliance officer,” said van Velden.

Part of a Broader Coalition Agreement

The repeal of the 30-day rule and the expanded availability of 90-day trial periods were campaign promises from both the ACT and National parties and have been cemented in their coalition agreement. Minister van Velden stressed that the reforms are particularly aimed at supporting employment opportunities for job seekers who may face barriers to hiring, such as those entering the workforce for the first time, career changers, or those returning from extended leave.

“Employers are more likely to take a chance on a candidate when they have the flexibility and reassurance of a trial period. This gives workers a foot in the door and employers the confidence to hire.”

Looking Ahead

The Employment Relations Amendment Bill will go through the standard legislative process, including select committee hearings, and is anticipated to pass by the end of 2025. The Government has said it welcomes input from businesses, unions, and workers during the process to ensure that the final law strikes the right balance between worker rights and business flexibility.

In the meantime, employers are encouraged to prepare for the upcoming changes by reviewing their onboarding processes and employment agreement templates to ensure they align with the new rules once enacted.

“This is about modernising our employment laws to reflect today’s workforce needs,” said Minister van Velden. “We want to protect choice, reduce red tape, and ultimately boost productivity across the board.”