Five weeks leave, a four-day week, reproductive leave: what unions want next

Are you prepared for the biggest shake-up to Australian workplace laws in decades?  

Trade unions are actively lobbying the federal government for sweeping changes to the National Employment Standards (NES). If successful, these proposals will radically alter how small to medium businesses operate, staff their teams, and manage payroll. 

This article breaks down the three major union proposals: five weeks of annual leave, a four-day work week, and 10 days of paid reproductive leave. We explore the context behind these demands, highlight the core arguments driving them, and explain what these proposed changes will mean for your business. 

The push for five weeks of annual leave 

The Australian Council of Trade Unions (ACTU) demands an increase in standard annual leave from four weeks to five weeks for full-time workers, and up to six weeks for shift workers.  

If passed, this would represent the first increase to this entitlement since the 1970s. 

The argument behind it

Union leaders argue that Australians work relatively long hours and suffer from high rates of stress. According to the unions, Australian workers perform an average of 4.5 weeks of unpaid work every year. They position this extra week of leave as a fair way to compensate workers for unpaid overtime, bridge the gap in real wage growth, and align Australia with European countries like France and Austria. 

What it means for businesses

For employers, this proposal introduces financial and operational challenges. Labour economists estimate an extra week of leave will add roughly two per cent to employment costs. Australian workers currently hold about 160 million days of banked annual leave, averaging 16 days per worker. If the government mandates a fifth week, businesses face higher leave liabilities on balance sheets and increased difficulty covering staff absences. 

The demand for a four-day work week and roster justice 

The Australian Services Union (ASU) has submitted a formal demand for a four-day work week with no loss of pay, alongside strict rules for “roster justice” and protections against artificial intelligence (AI). 

The argument behind it

Unions argue that the modern workforce faces soaring living costs, increasing care responsibilities, and rampant work intensification. They claim workers need a fundamental reset to protect their time.  

The demand for roster justice includes a mandate for employers to provide at least two weeks of notice for shift rosters, arguing that unpredictable schedules prevent workers from organising childcare and healthcare. 

What it means for businesses

Implementing a four-day work week without reducing pay requires a monumental shift in how you measure productivity. Small businesses that rely on five-day or seven-day trading may need to hire additional staff to cover the gaps. Strict roster justice rules could present challenges when responding to sudden changes in customer demand or staff illness.  

If passed, businesses will need highly disciplined scheduling processes and robust HR software to ensure compliance and avoid costly penalties. 

The introduction of 10 days paid reproductive leave 

Unions NSW is leading a campaign to introduce 10 days of paid reproductive leave, flexible working arrangements, and workplace adjustments for all employees. 

The argument behind it

Current personal leave provisions often fail workers experiencing chronic reproductive health issues. A recent survey of 1,029 workers revealed that 49 per cent of respondents delayed receiving medical treatment because they could not take leave from work. Furthermore, 81 per cent experienced reproductive health issues that impacted their ability to fully participate in work.  

Unions argue that the standard 10 days of sick leave can’t safely cover long-term treatments like IVF, endometriosis, menopause management, or preventative cancer screenings. 

What it means for businesses

If the government adopts this mandate, businesses will need to overhaul their leave policies and update payroll systems to track a new category of paid leave. Beyond the financial cost of covering 10 additional days of absence, businesses will need to train managers to handle sensitive health conversations appropriately.  

However, offering flexible working arrangements and adjustments can also serve as a powerful retention tool, helping keep valuable staff who might otherwise resign due to health struggles. 

Proposed changes to redundancy pay 

In addition to leave and scheduling reforms, unions are also advocating for significant updates to redundancy entitlements within the National Employment Standards (NES). 

The argument behind it

Unions have called for stronger redundancy pay, arguing that existing standards don’t fully protect workers in the evolving job market, especially as technology and AI increasingly influence workforce needs. They’ve proposed removing the current small-business exemptions to redundancy pay, so all workers, regardless of employer size, would receive the same protections.  

Another key proposal is to include prior service as a casual employee when calculating redundancy entitlements, benefiting employees with continuous work history who transition from casual to permanent roles. There are also calls for explicit protections regarding job losses driven by AI or technological change. 

What it means for businesses

 If these changes were implemented, small businesses, which are currently exempt from many redundancy obligations, could face new financial responsibilities when restructuring or downsizing their workforce. Employers would need to update HR and payroll processes to track all prior service (including from casual employment) and be prepared for additional costs if roles are impacted by AI.  

For businesses investing in automation or AI, these proposals may influence workforce planning and require more robust transition strategies for affected staff. While these measures aim to offer greater job security and fair compensation, they could increase employer obligations and advance the need for accurate workforce records and smart payroll systems. 

Get your systems ready now 

While these proposals are under consideration, it’s a good time to explore how a flexible HR and payroll system can help your business adapt quickly if new laws are introduced in the future.  

The right systems can make it easier to update leave categories, track compliance, and manage changing workforce needs – all without major disruption. Instead of making urgent changes, consider reviewing your current HR and payroll software to ensure it can easily adapt to new requirements if these proposals become law. Flexible systems will put your business in the best position to respond quickly and confidently to future workplace changes.  

Need industry-leading HR software for your business? Get in touch with our friendly team for a confidential, no-obligation chat. Our software solutions allow for:  

• Employee database management: a central hub for all employee records. 

• Payroll and compensation: management of salaries, benefits, and payroll processing. 

• Time and attendance: tracking work hours, managing shifts, and monitoring attendance. 

• Leave management: automating request and approval processes for all types of leave. 

• Performance management: tools for reviews, goal setting, and feedback. 

• Reporting and analytics: generating insights from your workforce data. 

• Compliance management: storing documents and tracking key compliance dates. 

Contact us today to discuss your compliance needs.