NES Updates - Staying Ahead of Evolving Employment Standards and Payroll Requirements

Staying Compliant with NES Updates

The National Employment Standards continue to evolve with significant updates impacting payroll compliance. Most notably, government-funded Paid Parental Leave is expanding to 24 weeks from July 2025 (26 weeks from July 2026) and will now include 12% superannuation contributions for recipients. Combined with recent additions like 10 days' paid family and domestic violence leave, these changes require constant vigilance to avoid underpayments and penalties. At Pay Australia, our compliance experts continuously monitor NES developments and proactively update your payroll systems to seamlessly incorporate new requirements, ensuring accuracy and eliminating compliance risks.

Australia's National Employment Standards (NES) form the foundation of minimum employee entitlements, providing 11 core protections that apply to nearly all workers in the national workplace relations system. These include maximum weekly hours, flexible working arrangements, annual leave, personal/carer's leave, parental leave, family and domestic violence leave, community service leave, public holidays, notice of termination, redundancy pay, and the Fair Work Information Statement.

The NES is not static - it exists as a set of core minimum entitlements that are stable but subject to legislative review and interpretation. Separate from the NES, Australia’s government-funded Paid Parental Leave (PLP) scheme is being progressively expanded — increasing to 24 weeks from 1 July 2025 and further to 26 weeks from 1 July 2026 — and, from July 2025, government-funded parental leave includes a 12% superannuation contribution paid into recipients’ funds.

Family and domestic violence leave has also been strengthened in prior years, entitling employees to 10 days of paid leave annually—a critical support mechanism that underscores the NES's role in promoting workplace safety and wellbeing.

Falling behind on these updates can expose businesses to significant risks, including underpayments, disputes, Fair Work claims, and penalties. Compliance requires vigilant monitoring of legislative changes across the NES, modern awards, enterprise agreements, and related payroll obligations.

That's where Pay Australia steps in. Our experts stay abreast of all NES developments and proactively update your payroll systems to incorporate the latest requirements. We ensure seamless adaptations, from leave calculations to wage integrations, minimising errors and administrative burdens.

Partner with Pay Australia to navigate NES evolution confidently. Stay compliant, reduce risks, and focus on what matters most—your people and your business growth.

FAQ

Q: What changes are coming to Paid Parental Leave, and how do they affect employers?

A: Australia's government-funded Paid Parental Leave (PLP) scheme is undergoing significant expansion over the next two years. From 1 July 2025, eligible employees will receive 24 weeks of paid parental leave (increasing from the current duration), and this will further expand to 26 weeks from 1 July 2026. Critically, from July 2025 onwards, the government will also pay a 12% superannuation contribution on PLP payments directly into recipients' superannuation funds—addressing a longstanding gap in retirement savings for parents taking leave. While this is government-funded leave (not paid by employers), businesses must ensure their payroll systems accurately track employees' eligibility, coordinate with employer-funded parental leave entitlements, where applicable, and properly manage interactions between PLP and other leave types. Pay Australia ensures your systems are configured to handle these complexities, preventing confusion and ensuring employees receive their full entitlements.

Q: Beyond legislative changes, what are the biggest NES compliance risks employers face?

A: The most significant NES compliance risks stem from the interaction between the 11 minimum standards and the specific requirements of modern awards or enterprise agreements, which often provide additional or more generous entitlements. Employers must ensure they're meeting whichever provides the greater benefit to employees. Common pitfalls include miscalculating leave accruals (particularly for part-time or casual employees), failing to properly assess and respond to flexible working arrangement requests, incorrectly applying maximum weekly hours provisions, and overlooking notice and redundancy pay obligations during terminations. Family and domestic violence leave, with its 10 days of paid entitlement, is sometimes missed entirely by employers unfamiliar with the provisions. Additionally, the requirement to provide the Fair Work Information Statement to all new employees is frequently overlooked. These seemingly administrative requirements carry real penalties when breached, and systemic failures can trigger Fair Work audits and back-payment obligations affecting multiple employees.