With the federal election just around the corner on May 3, things are heating up on the campaign trail – and there’s plenty at stake for the staffing and recruitment industry. From job security and workplace laws to contractor rights and award changes, each of the major parties has made key policy commitments that could reshape the landscape. We’ve put together a straightforward summary of what’s on offer, and what it might mean for you and your business.
Labour (ALP)
Cracking Down on Non-Compete Clauses
Labor plans to ban non-compete clauses for workers earning under $175,000 a year (not including super). That’s in line with current contractor income thresholds.
They also want to ban wage-fixing and “no-poach” agreements unless workers agree to them.
There’ll be more consultation on the details, including possible exceptions, penalties, and how these changes will be rolled out. They’re also looking into rules around non-solicitation clauses and non-compete clauses for higher earners.
Impact on Recruitment Agencies:
This change could significantly alter the way recruitment agencies operate when managing placements. Agencies may find it harder to lock down candidates exclusively or prevent them from moving between competing businesses. Non-compete clauses, often used to protect agency-client relationships, would likely become less enforceable. This could lead to increased competition for talent, but also more flexibility for candidates to move freely between roles.Protecting Penalty Rates
Labour says it’ll lock in protections so penalty rates can’t be cut.
They haven’t released the exact legal steps yet, but the goal is to prevent any loopholes where employers might offer pay rises in exchange for giving up conditions like penalty rates. It’s not yet clear how this will affect awards that currently bundle salary and entitlements (like in hospitality).
Impact on Recruitment Agencies:
Agencies in industries where penalty rates are standard (like hospitality, retail, or healthcare) may need to adjust their pay structures and client rates to comply with these new protections. If employers can’t reduce penalty rates in exchange for other benefits, it could affect the type of salary packages agencies can offer and influence candidate expectations in those sectors.Support for Community and Disability Workers (SCHADS Award)
Labour says they’ll back better pay and clearer career paths for community and disability sector workers.
They’re committing funding for a workforce project to help modernise the SCHADS Award — especially how job classifications are structured.
Impact on Recruitment Agencies:
This would likely benefit recruitment agencies working in the community and disability sectors, as it could mean higher demand for qualified candidates. The focus on career pathways and pay increases could also make these sectors more attractive to job seekers, creating more opportunities for agencies to place candidates. However, agencies may need to adjust their recruitment strategies to meet the evolving classification and pay structures.
Liberal–National Coalition
No More Forced Redundancies or 5-Day Office Mandates in Public Service
They’re dropping the push for all federal public servants to be in the office five days a week.
Also, no forced redundancies — the planned reduction in public service numbers (41,000 over 5 years) will happen through natural attrition and hiring freezes.
Impact on Recruitment Agencies:
For agencies that work with public sector clients, this policy could reduce demand for public service recruitment, as the government scales back its workforce and adopts more flexible office arrangements. Agencies may also see shifts in demand for roles in government departments, with potentially fewer permanent positions available. However, this could boost demand for temporary and contract roles to fill gaps.Undoing ‘Right to Disconnect’ and Casual Work Definition Changes
If elected, the Coalition will scrap the new ‘right to disconnect’ laws and go back to the old definition of casual employment.
Impact on Recruitment Agencies:
Reversing the “right to disconnect” could ease some pressures for recruitment agencies that work with employers who need after-hours flexibility, especially in high-demand sectors. Changing the definition of casual employment back to its previous form could have implications for how agencies hire and classify candidates, particularly those working in casual, shift-based, or gig economy roles.
Building Industry Shake-Up
They’re planning a major overhaul of the construction sector. This includes deregistering the CFMEU union and bringing back a tougher version of the ABCC (Australian Building and Construction Commission), with powers similar to organised crime laws.
Impact on Recruitment Agencies:
This policy would likely create more instability and regulatory changes in the construction sector. Recruitment agencies working in this field might need to navigate a more complex industrial landscape, dealing with deregulated unions and stricter oversight from the ABCC. While this could lead to some cost reductions for businesses, it may also increase demand for compliance-focused recruitment services.
Review of ‘Same Job, Same Pay’ Laws
Peter Dutton has said they won’t scrap the laws outright, but Senator Michaelia Cash confirmed the Coalition would review recent changes to the industrial relations system.
Impact on Recruitment Agencies:
The review of the ‘Same Job, Same Pay’ laws could affect how agencies handle pay equity between contractors and permanent employees. If the laws are altered or repealed, recruitment agencies may have more flexibility to negotiate pay rates for temporary or contract workers, especially in industries like construction, healthcare, or mining. However, this may also lead to more complexity in ensuring compliance with different pay structures.
The Greens
Trialling a 4-Day Work Week
The Greens want the Fair Work Commission to run a test case for a national four-day work week – same pay, fewer hours.
They’d also create a new national body to guide the transition.
Impact on Recruitment Agencies:
This policy could disrupt traditional work schedules, especially in industries that rely on full-time availability. Recruitment agencies may need to adapt quickly, working with clients to shift their recruitment strategies and adjust for a potential four-day week. However, this could also create new opportunities in sectors that embrace more flexible working arrangements, attracting candidates who are seeking better work-life balance. There could also be temp recruitment opportunities to back full roles where full time needs are required such as nursing or teaching.
Leave for Casual Workers
They support giving casual workers pro-rata access to personal and annual leave.
Impact on Recruitment Agencies:
Agencies would need to adjust how they manage casual workers, ensuring they are offering the correct pro-rata entitlements. This could increase the administrative burden for agencies, but it would also level the playing field for casual employees, making it easier to recruit casual staff who may now feel more secure in their employment rights.
Stable Rosters
They’d change the law so employers must give more notice before changing rosters — goodbye to last-minute shift changes.
Impact on Recruitment Agencies:
This would affect recruitment strategies, especially in industries like retail, hospitality, and healthcare, where shift work is common. Agencies may need to work more closely with clients to ensure roster stability and clear communication, particularly for clients in sectors with unpredictable or fluctuating demand.
52 Weeks of Paid Parental Leave (PPL)
They’re aiming big here:Double paid parental leave from 26 to 52 weeksIncrease “use it or lose it” leave for secondary parents from 4 to 12 weeks Pay at full replacement wage (government funds up to $100K, employers top up the rest)Pay super on all 52 weeks. Extend access to PhD students
Impact on Recruitment Agencies:
This could have a positive impact on agencies recruiting for industries with high female participation, as better PPL policies may make it easier for workers to return to the workforce after parental leave. Recruitment agencies might see more candidates entering or re-entering the workforce following an extended PPL, and could play a larger role in managing temporary replacements during parental leave.
So, Who’s Likely to Have the Biggest Impact?
Labor’s platform is set to have the most direct and significant impact on the staffing and recruitment sector -particularly through their push to ban non-compete clauses, wage-fixing agreements, and no-poach clauses. These changes could fundamentally shift how agencies manage talent mobility and contracts. Their focus on award modernisation, worker protections, and career pathways in the care sector also speaks to areas of real growth for recruiters.While the Coalition’s approach leans more toward maintaining flexibility and reducing regulation -which some businesses may prefer – it’s less likely to bring major structural changes to the sector in the short term. The Greens offer bold, worker-focused ideas, but without the likelihood of forming government, their policies may influence the conversation rather than become reality.
Final Thoughts
With such a broad mix of policies on the table, it’s clear this election will shape the future of work in Australia. For staffing and recruitment professionals, staying on top of these changes is key. We’ll continue to keep you in the loop as the campaign unfolds.
NB: Some information referenced from the RCSA Election Policy Commitments Article: https://www.rcsa.com.au/Site/Site/News/LatestInsightsTheBrief.aspx?hkey=bfc6dc21-f57e-48f9-af0d-e2e04dbf
