What is happening in the world of HR for small businesses?

Workplace Relations on the Radar: What to Expect from Labor’s Second Term

With the Albanese Government securing a second term, workplace relations reform remains a key focus. Several changes are on the horizon that may impact small businesses over the next three years.

While many proposed reforms are still in development and not yet law, it’s worth being aware of what’s likely to unfold so you’re not caught off guard. Here’s a quick look at what’s been announced (so far) and when you might expect to see changes.

What’s Coming

Ban on Non-Compete Clauses (by 2027)

One of the headline proposals is a ban on post-employment non-compete clauses for employees earning below the high-income threshold (currently $175,000).
This move follows international trends:

• In the US, the Federal Trade Commission has proposed a nationwide ban.
• In the UK, time limits on such clauses are under consideration.
• In Europe, some countries require employers to pay workers during a non-compete period, making them less common.

The Australian Government argues that removing these clauses will increase job mobility, boost wages, and support productivity.

This change is on the agenda for 2027 and will most likely be staged, in line with previous changes. We will keep you updated as more details are released.

Other Workplace Relations Proposals Announced

• Abolishing junior pay rates for adult workers (date TBA): Focused on wage equity in sectors like retail and hospitality.
• A national portable long service leave scheme (date TBA): Would allow casual and mobile workers to take leave entitlements between jobs.
• Expanded minimum standards for gig workers (further legislation is expected): This builds on earlier reforms for digital platform workers.
• Formalising penalty rates in law (timeline not yet confirmed): Aims to protect penalty rates from future reductions.

What This Means for You

None of these changes have taken effect yet; in many cases, the details are still being worked out. At this stage, small business employers are not required to act, but staying informed is important.

We’ll continue to monitor legislative developments and provide updates as more information becomes available. Our role is to help you stay prepared and confident in your obligations, without jumping the gun.

Questions or concerns?

Feel free to contact our team for a chat. As always, we’ll update you with any confirmed timeframes or requirements as they’re announced.

FAQ: Can I Make an Employee Pay Back the Cost of Training If They Leave?

We hear this question regularly, especially from small business owners who invest in professional development for their team. If you’ve paid for a course and had the employee sign an agreement to repay it if they leave early, you’re not alone. But recent conversations in the HR and legal space suggest it’s not as straightforward as it used to be.

Q: I paid for a course for an employee. We both signed a specific agreement that they’d repay 50% if they left within 2 years. Can I enforce this now that they’ve resigned?

A: Possibly – but with some big caveats.

While there’s been no specific change to the law banning these clauses, there’s growing scrutiny under the Fair Work Act, particularly regarding unlawful deductions and underpayment risks. Just having an agreement doesn’t mean you can automatically recover the money.

For these agreements to be considered enforceable, they must be reasonable. That means considering factors such as:

• The cost and nature of the training (e.g. a $3,000 external course vs. a short online module).
• Whether the training provides a long-term benefit to the business.
• How long must the employee stay before the repayment clause expires?
• The employee’s understanding of what they were agreeing to – the clause should be clearly worded and specify what training it covers.

The clause may be considered void and unenforceable if it feels excessive or unclear.

You also can’t withhold final pay (e.g. notice, annual leave) without express written permission – and not just once.

Even with a signed agreement, you need the employee’s clear written consent on each occasion you deduct money from their pay. You cannot simply deduct the training amount from their final wages if they refuse. Doing so could expose you to underpayment claims.

Pursuing the debt through legal channels is usually more expensive and time-consuming than the cost of the training itself, and success is not guaranteed.

Consider the bigger picture: culture and retention.

While wanting some protection is understandable, overly rigid or punitive training agreements can backfire. They may create resentment or reduce uptake of development opportunities. If professional growth is framed as something that comes with strings attached, it may unintentionally undermine trust and engagement.

Alternatives to a Formal Training Repayment Agreement

There are other ways to support professional development while encouraging commitment and reducing risk:

• Annual training allowance: Provide a set amount each year that employees can use on relevant training of their choice, with the option to accrue unused funds for more expensive courses over time.
• Staged reimbursement model: Ask employees to pay upfront and reimburse them in instalments over 6 – 12 months, pausing future instalments if they resign.
• Offer training after probation or performance reviews, when you have more confidence in the employee’s commitment.
• Tie training to internal progression pathways, showing employees the long-term value of staying.
• Use in-house development or peer mentoring, which embeds knowledge and strengthens team capability.
• Build a clear professional development policy, so everyone knows how training is approved, funded, and supported, and when formal agreements may apply.

At Strawberry Seed, we still offer a Training Reimbursement Agreement template to help manage risk where appropriate, but we recommend a balanced approach that supports your culture and long-term goals.

Want help creating a tailored training and development approach for your business? Contact us – we’re here to help you build a skilled team without the stress.

Preparing for the EOFY

With the end of the financial year just approaching fast, now is the time for small business owners to get their HR in order. Here are five key areas to focus on this month:

1. Review your employment contracts – Are they current and aligned with award changes?
2. Check pay rates and classifications – With the 2025 national minimum wage review due mid- to late June, now is the time to audit your payroll.
3. Look at leave balances – High accruals can create future cash flow issues. Plan ahead!
4. Update performance records – Capture feedback and set goals before the new financial year begins.
5. Ensure compliance – Check award obligations, superannuation, and record-keeping requirements.

Taking time in May to review your HR practices means fewer surprises at EOFY. Learn more in our 5 EOFY HR Questions for Small Business article.

And don’t miss our Free June Webinar ‘Award Increase 2025 – What Do Employers Need to Know?‘ on the 25th June 2025. It is our most popular webinar every year! Book here.

Have you visited our new Seeds of Support – Free Resource Hub?

Last month, we were excited to launch our Seeds of Support Resource Hub, a free collection of practical tools and guides designed to help small businesses create inclusive, confident, and compliant workplaces.

Created by our qualified HR team, the hub’s first release of resources includes easy-to-read fact sheets on supporting neurodivergent employees (including ADHD, Autism, and Dyslexia), navigating workplace adjustments, and improving communication with your team.

It’s ideal for business owners, managers, and HR professionals who want clear, actionable advice grounded in Australian workplace law.

Our next release of resources (coming later in 2025) will focus on supporting Mental Health in the workplace.

Explore the Seeds of Support Hub

Upcoming Training and Development.

Free May Webinar – Understanding Sexual Harassment Obligations

In our May webinar, small business owners and people managers will learn how to meet their legal obligations around preventing and responding to sexual harassment in the workplace. With clear, real-world guidance and actionable advice, you’ll walk away more confident about protecting your employees, your business, and yourself. Key Takeaways include:

Understanding the Legal Landscape: Carli Saw, Director of Strawberry Seed Consulting, will break down the key elements of the Sex Discrimination Act and the Fair Work Act, including the positive duty to eliminate sexual harassment and hostile work environments, recent legislative changes, and their implications for employers.

Creating a Safe Workplace Culture: Explore the proactive steps small businesses should take to prevent sexual harassment, including establishing appropriate policies, implementing effective reporting procedures, providing training, and setting clear behavioural expectations.

Responding to Issues Confidently and Legally: Learn what to do when a complaint arises – including how to respond appropriately, investigate fairly, protect all parties, and meet your legal obligations throughout the process.

We understand that small business owners lead busy lives, so we’ve scheduled this session for the evening. Feel free to join us with a cup of tea or wine.

Click here to register for this webinar on Wednesday, 21st May 2025, at 7.30 pm. If you cannot attend, register to receive a webinar recording via email after the session.

Leadership Training 

Our public Leadership Training Workshops bring together small business people managers to share their experiences and build practical leadership skills. This interactive, in-person session is designed to help leaders get the most out of their people, improve team performance, and reduce organisational risk.

Workshops will be held throughout 2025, starting in Brisbane on 30 May. Later in the year, additional sessions are scheduled for Sydney and Geelong.

Click here to download the brochure or visit our website for dates and booking details.

Discounts apply for returning clients, affiliated organisations, and early bird bookings. Contact our team to receive your discount code before you register.

Lead With Impact – July 2025 Intake Now Open!

A 5-month online leadership program to help you lead with clarity, confidence and impact.

Enrolments are now open for the next intake of our flagship leadership course, Lead With Impact: Grow Your Leadership Skills, which begins on 21 July 2025.

This blended program combines five live 2.5-hour online workshops with three one-on-one coaching sessions, providing real-world strategies to strengthen leadership. You’ll gain skills in self-management, team communication, delegation, feedback, conflict resolution and more.

Each participant also receives a DISC behavioural assessment with a personalised debrief, and a suite of tools and resources to support implementation.

Earlybird pricing available until 30 June 2025. Additional discounts available for Strawberry Seed Package clients and group bookings (2+ participants from the same business)

Spaces are limited – click here to learn more and enrol now.

Mental Health First Aid

Mental Health First Aid training teaches practical first aid skills to help a team member or co-worker experiencing mental health issues. We’ll teach you how to approach someone struggling, ask the right questions and assist them in accessing professional help. In 2023, we delivered 13 courses nationwide, educating 128 people on Mental Health First Aid, including the whole team at Strawberry Seed.

Our Principal HR Advisor and Mental Health First Aid Instructor, Frances Orr, is an accredited MHFA trainer who has delivered public and in-house MHFA training for many clients since 2021. In 2025, we will have several options for attending public and private in-house Mental Health First Aid training and Refresher courses available.

Visit our Upcoming Training page for dates and details on how to book. For more information on MHFA, contact mhfa@strawberryseed.com.au.