If you thought the last few years were heavy on workplace reform, strap in.
2026 is shaping up to be the year regulators shift from change to enforcement, and small to medium-sized businesses will be front and centre.
While many of the major amendments from the Closing Loopholes legislation and Respect@Work reforms have already rolled out, 2026 will focus on tightening expectations, refining definitions, and boosting compliance inspections.
Here’s what’s coming—and what you need to prepare for now.
What to Expect from Fair Work in 2026
1. Enforcement of Wage Theft Criminalisation
With criminal penalties embedded in the Fair Work Act 2009, expect:
- More investigations
- Larger penalties
- Zero tolerance for poor recordkeeping
If you’re still relying on outdated payroll systems, 2026 is not the year to gamble.
2. Stronger Oversight of Labour Hire and Contractor Arrangements
As “same job, same pay” rules stabilise, the focus will shift to whether SMEs:
- Are engaging contractors appropriately
- Are avoiding sham contracting
- Can justify pay differentials
If your contractors look, act, and behave like employees, you’ll face more scrutiny.
3. Consolidation of Casual Employment Reforms
2026 will bring:
- Further clarity around casual definitions
- Tighter obligations on casual conversion
- Increased auditing of casual loading practices
Casual employment has been a hot topic for years—2026 is when the rules will bite.
4. Expanded Psychosocial Safety Enforcement
The WHS regulators will increase proactive inspections around:
- Workplace culture
- Workload impacts
- Sexual harassment prevention
- Psychological harm controls
This flows directly from the Respect@Work and WHS amendments.
Policies alone won’t protect you—regulators want evidence of action.
5. Minimum Standards for “Employee-Like” Workers Become Business-as-Usual
Delivery drivers, gig workers, platform-based roles—2026 will cement:
- Minimum pay standards
- Protection from unfair deactivation
- Rights to dispute resolution
Any SME relying on flexible contractor models will need airtight documentation.
What You Should Be Preparing for Right Now
✓ Review every employment classification
Misclassification is the biggest emerging risk area.
If an audit happened tomorrow, could you justify each engagement?
✓ Tighten your Awards, pay rates and rostering
Awards aren’t relaxing.
Underpayments are still the number-one issue triggering enforcement.
✓ Bring your HR policies into 2026 — literally
Outdated documents = compliance gaps.
Update:
- Sexual harassment and psychosocial safety
- Casual employment
- Remote work
- Contractor engagement
- Labour hire obligations
✓ Upskill your managers before expectations lift
2026 will demand leaders who actually understand:
- Their obligations
- Their responsibilities for culture
- Their active role in health, safety and behaviour
✓ Strengthen recordkeeping and payroll audit trails
When wage theft becomes criminal, “I didn’t know” won’t cut it.
Now Is the Time to Check Your HR Health
Most SMEs underestimate their compliance risks—until a complaint or an inspector lands at the door.
This is why we created the ForgeHR Compliance Readiness Survey.
Your call to action: Complete the survey today.
You’ll get:
- A tailored compliance report
- Clear insights into weak spots
- Prioritised recommendations
- A snapshot of where your HR systems may fall short heading into 2026
2026 isn’t about new rules — it’s about proving you’re compliant with the ones already introduced.
Stay ahead of the curve.
Complete the ForgeHR Compliance Survey now
Your business. Your people. Your peace of mind for 2026
