Strawberry Seed Update

If the start of 2026 is anything to go by, this is not shaping up to be a quiet year in the HR world!

April Focus: Managing performance before and after it becomes an issue

If there is one area that consistently trips leaders up, it is performance. Not because they do not care. Usually, the opposite.

It is because they are trying to balance being fair, being human, and still getting the outcome the business needs. And somewhere in that mix, things either get avoided for too long or escalated too quickly.

This month, we are focusing on both sides of that equation.

Start early: Performance feedback that actually works

Our April free webinar is all about what happens before things become formal. This is the space where most performance issues either get resolved or quietly grow legs.

We will be focusing on:

• how to give feedback that lands, not just gets delivered
• recognising early signs of performance concerns
• creating clarity and accountability without jumping straight to formal processes
• building confidence to have conversations when they matter most

This session is ideal for business owners and leaders who know they need to address things earlier, but are not always sure how to do it in a way that sticks. Because most disciplinary processes do not start with a warning. They start with something that was not addressed when it should have been.

Register Now

When it does escalate: Getting the process right

For those situations where feedback has not worked or the issue is more serious, our Performance Management Deep Dive takes it to the next level.

This is where we move into:

• the shift from feedback to formal warnings
• understanding what “procedural fairness” actually looks like in practice
• documenting issues properly so they hold up if challenged
• managing the balance between supporting improvement and managing risk
• knowing when it is appropriate to exit, and how to do that in a way that protects both the business and the broader team

Part of our new Leadership Deep Dive series, this 3 hour online session is designed to build confidence in handling the harder conversations, without defaulting to either avoidance or overly heavy-handed approaches.

Because the goal is not just to “follow a process”. It is to:

• give employees a genuine opportunity to improve
• make clear, defensible decisions
• and protect culture while you do it

Enroll Now

Why this matters now

With everything else happening in the HR landscape right now, performance management is one of the few areas you can actually control.

Handled well, it:

• lifts team capability
• reduces risk
• and avoids bigger issues down the track

Handled poorly, it tends to do the exact opposite.

Want to go further?

If you are looking to build these skills and more across your leadership team, we have a lot more leadership development coming up in 2026.

Our Leadership Essentials Workshops (next one in Brisbane in May, with future sessions coming in Sydney and Geelong) and our Lead With Impact 5-month online program are designed to help leaders build the core skills that prevent these issues in the first place. That includes:

• communication and feedback
• setting expectations and accountability
• handling difficult conversations early
• building trust so issues are addressed, not avoided

Both programs currently have early bird rates available, along with discounts for Strawberry Seed package clients. Reach out to our team for more details.

If you want to explore any of these options or register for the April sessions, you can find all the details here.

Because while we can never eliminate performance issues entirely, we can make them a whole lot easier to deal with.

Legislative and Fair Work Updates

Between legislative changes, Fair Work activity and a few bigger-picture shifts in how work is regulated, there are a number of issues already in motion that are likely to land over the next 6 to 12 months.

Below, we guide you through some of the most recent to hit the headlines in the last few weeks.

Junior wages decision: Fair Work moves to phase out lower rates for adult juniors

The Fair Work Commission has handed down a significant decision that will directly impact employers in retail, fast food and pharmacy, and is likely to influence how junior wages are treated across other industries.

The decision applies to the:

• General Retail Industry Award
• Fast Food Industry Award
• Pharmacy Industry Award
• and focuses on employees aged 18 to 20, who are currently paid a percentage of the adult rate based on age.

Importantly, this is not just a contained change. Decisions like this tend to be closely watched by unions and industry bodies, so it is very possible we will see similar arguments raised in other awards over time.

What has actually changed?

The Commission has drawn a clearer line between minors and adults.

• Under 18: no change, junior rates remain
• 18 and over: moving toward full adult pay

Rather than an immediate increase, the change will be phased in from December 2026 through to July 2029, with gradual increases each year until adult juniors reach the full adult rate (once they have more than six months’ service).

Why did the Commission make this call?

For employees under 18, the Commission accepted that factors like limited experience, legal restrictions and labour market disadvantage still justify lower rates. For employees aged 18 and over, it landed differently.

The key findings were:

• adult juniors are generally performing the same work as other adults
• current junior rates were not based on a clear work value assessment
• paying adults less purely because of age is increasingly difficult to justify

At the same time, the Commission acknowledged the cost impact on employers, which is why the change is being staged over several years.

What employers need to know

Nothing changes immediately. The first increase is not expected until December 2026, giving businesses time to prepare.

The six-month rule matters. The move to full adult rates applies to employees aged 18 to 20 who have more than six months’ service with their current employer.

This is a cost planning issue. For businesses with a higher proportion of younger workers, particularly in retail and fast food, this will have a real wage impact over time, not overnight.

This signals a broader shift. The Commission has effectively said that once someone is legally an adult, lower pay based purely on age is harder to defend. That thinking is unlikely to stop with these three awards.

The bottom line

This decision does not overhaul junior wages overnight, but it does set a clear direction. Junior rates for under 18s stay. Junior rates for adult employees are being phased out.

For now, the focus is awareness and forward planning. Because while 2029 feels a long way off, these changes have a habit of creeping into payroll faster than expected.

Fair Work flags new rules on AI in applications

If you’ve had the sense lately that Fair Work claims are getting longer, more polished, and occasionally a bit… off, you’re not imagining it.

The Fair Work Commission has released draft guidelines on the use of generative AI, responding to a sharp increase in AI-assisted applications. The issue is not just volume; it is quality. Documents can look convincing but include irrelevant arguments, incorrect facts, or completely made-up legal references.

What has actually changed?

These are draft guidelines, but they signal where things are heading.

If AI is used to prepare material lodged with the Commission, the expectations are simple:

• Disclose it: Be upfront if AI has been used
• Check it: You are responsible for accuracy, including facts, evidence and legal references
• Own it: Witness statements must still reflect the person’s actual knowledge

There is also a clear warning not to input confidential or sensitive information into public AI tools.

Why is this happening?

AI has made it easier for people to draft applications without legal support, which is not a bad thing. But it has also led to:

• overly ambitious or unrealistic claims
• incorrect or invented legal references
• long submissions that miss the actual issue

The result is more time, cost and frustration for everyone involved.

Who is affected?

Anyone lodging something with the Commission. That includes employees, employers, HR professionals and legal representatives.

What should employers know?

• AI is fine. Invisible AI is not. You cannot blame the tool. If it is wrong, it is on you.
• Poor-quality material may have consequences, including how your matter is handled.
• Disclosure is likely to become standard practice, built into forms and processes.

The bottom line

This is not a ban on AI. It is a reality check. Use it if it helps. Just make sure what you submit is accurate, relevant and defensible. Because the Commission has made one thing very clear. A human still needs to be in charge.

Fairer Fuel Act sparks urgent Fair Work case on fuel cost recovery

A new law, the Fair Work Amendment (Fairer Fuel) Act 2026, commenced on 2 April 2026 and gives the Fair Work Commission a faster process for dealing with urgent issues in the road transport industry. It allows the Minister to declare certain applications an emergency application, which means the Commission can consider a time-sensitive road transport contractual chain order on an expedited basis.

On the same day, the TWU and ARTIO lodged a joint application seeking an order to address rising fuel costs across the road transport chain. The application says fuel prices are rising at an unsustainable rate and proposes a framework for fuel cost recovery, including potentially weekly rate reviews.

This issue is most relevant for businesses operating in, or contracting within, the road transport and freight supply chain, including transport businesses, contractors, digital platform operators and parties higher up the chain who influence pricing.

It is not yet a final order, but it is one to watch closely. The Commission has already set up an Expert Panel and listed an initial hearing for 8 April 2026.

For employers in affected sectors, now is a good time to review transport contracts, pricing arrangements and any mechanisms for passing through sudden fuel cost increases.

What we are keeping an eye on

In addition to those listed above, there are several broader reviews and consultations happening behind the scenes that could lead to more significant changes.

• The NES review is underway, with early discussions around annual leave entitlements and redundancy provisions.
• The gender-based undervaluation review is continuing across several modern awards, with further wage and classification changes expected.
• Proposed changes to restraint clauses and non-compete provisions are still moving through consultation, with potential commencement flagged for 2027.

These are the ones where nothing has changed yet, but it would be a mistake to ignore them.

What this means for employers

The common thread across all of this is not just “more change”, it is a shift in focus. We are seeing:

• greater scrutiny on fairness and work value
• more attention on how costs and risks are shared across businesses
• increased expectation that employers are proactive, not reactive

In practical terms, that means now is a good time to:

• sense-check your pay structures and classifications
• review how your contracts and commercial arrangements handle change
• make sure your documentation and processes would stand up to scrutiny if tested

Nothing dramatic. Just fewer assumptions and a bit more intention. And don’t forget we are here to help you navigate through and stay compliant.

The bottom line

There is no single reform that changes everything overnight. But there are multiple changes, moving at once, that are gradually reshaping the landscape. We will keep tracking what actually lands, what gets delayed, and what quietly disappears, and we will keep you updated as things become clearer.

Because if the last few months are anything to go by, “we’ll deal with that later” is not a strategy that is ageing particularly well.

REMINDER: Health Professionals Award update

If your business is covered by the Health Professionals Award, there are further changes on the way, particularly around classifications, with updates expected following the final review in the coming weeks.

We have set up a dedicated update stream for Allied Health employers, so you only receive information that is relevant and practical. We will not be addressing these in our usual Punnet updates.

If this applies to you, click below to be added to this list.

Opt-in For Updates

We will share clear updates, practical guidance and next steps as soon as the final position is released. Also, keep an eye out for our first lunchtime webinar in the next few weeks.

When Commuting Starts to Feel Like a Pay Cut

Let’s call it what it is. For a lot of employees right now, getting to work is quietly becoming one of their biggest weekly expenses.

Fuel prices have jumped sharply, and for anyone who drives to work, especially in regional areas or client-facing roles, that cost is not optional. It is not a lifestyle choice. It is the price of showing up. Recent commentary has even framed rising fuel costs as effectively reducing take-home pay once commuting is factored in.

At the same time, businesses are feeling it too. Higher transport costs, higher supplier costs, tighter margins. It is hitting both sides, just in slightly different ways.

From an HR perspective, this is where things get interesting. Because fuel costs are no longer just a personal issue. They are becoming a workplace issue. And like most workplace issues, ignoring it tends to cost more in the long run.

The reality check

Before we get into solutions, a quick reality check. Most small to medium businesses are not in a position to:

• absorb everyone’s commuting costs
• significantly increase wages overnight
• completely redesign how work gets done

So this is not about big, expensive fixes. It is about practical, proportionate support that shows awareness and flexibility.

Because in a tight labour market, the employers who acknowledge what people are dealing with tend to be the ones people stay with.

Where employers can start

There is no single solution, and what works will depend on your business. But there are a few areas where employers can make a meaningful difference without blowing up their cost base.

Use flexibility where it actually works

This is the obvious one, but also the one that still gets treated like a philosophical debate. If a role can be done from home, even partially, this is one of the most effective ways to reduce commuting costs. Even a couple of days per week can materially reduce fuel spend for employees.

We are already seeing renewed pressure from unions and employees to revisit flexible work arrangements in response to fuel costs. This does not mean “everyone works from home forever”. It means being a bit more pragmatic about when physical presence actually matters.

A good starting point is asking:

• Which roles genuinely need to be on-site?
• Which days actually require collaboration?
• Where are we asking people to come in out of habit rather than necessity?

Rethink how and when people work

If people do need to come in, small changes can still make a difference.

• Flexible start and finish times to avoid peak traffic
• Compressed work weeks where appropriate
• Clustering onsite days rather than spreading them across the week

These are not revolutionary ideas, but they can reduce time on the road and fuel consumption, particularly in high-traffic areas.

Look at practical commuting support

For employees who must be on-site, this is where the pressure really sits. Some options employers are starting to explore include:

• temporary fuel or travel allowances
• reviewing motor vehicle reimbursement rates
• one-off cost of living payments where financially viable
• supporting public transport or parking options

There is also a growing push from unions to increase vehicle allowances to reflect current fuel prices, which is something to keep an eye on.

For small businesses, this does not need to be permanent or across the board. Even short-term or targeted support can take the edge off.

Encourage shared solutions

Not everything has to sit with the employer. Some of the more practical, low-cost approaches we are seeing include:

• carpooling or ride-sharing between team members
• coordinating team schedules to reduce unnecessary trips
• using technology to reduce travel between sites or clients

These are simple, but they work, particularly in smaller teams where coordination is easier.

Communicate like a human

This one sounds obvious, but it is often missed. Employees do not expect their employer to solve the fuel crisis. But they do expect:

• acknowledgment that it is happening
• clarity on what support is available
• openness to reasonable conversations

Silence is usually interpreted as indifference.

The bigger shift

What we are seeing is not just a temporary spike in fuel prices. It is part of a broader cost-of-living pressure that is changing how employees think about work. Commuting is no longer just time. It is money. And for some employees, a lot of it.

That is why flexibility is becoming less of a “perk” and more of an expectation. You do not need to overhaul your business overnight. But doing nothing is also a decision.

The employers who navigate this well will be the ones who:

• stay practical
• stay flexible
• and actually pay attention to what their people are dealing with

Have a conversation with your team and listen to what they have to say. Consider the options available and get their feedback.

Because right now, getting to work is not just part of the job. For some employees, it is starting to feel like a cost of doing business.

If you are looking for help to navigate this issue, reach out to the Strawberry Seed team for guidance and support.