News · Industrial and public law
The Minns Government's IRC reforms: workplace bullying, sexual harassment and safety in NSW.
The Minns Labor Government has reshaped the NSW Industrial Relations Commission. A package of workplace reforms has expanded the Commission's jurisdiction, powers and membership, so it now works as a specialised hub for worker safety, disputes and anti-bullying. The Commission can issue stop-orders and award damages of up to $100,000, the small claims cap has risen from $20,000 to $100,000, and new statutory objectives on gender equality and the elimination of bullying and harassment have been written into the Act. This note explains what changed and what it means for workers.
By Aaron Kernaghan · Published 28 August 2026
What the reforms did.
The NSW Government has passed a set of workplace reforms that significantly expand the Industrial Relations Commission. The change is not a single new power. It is a shift in what the Commission is for. It has been built into a specialised hub for three things: worker safety, industrial disputes, and the handling of bullying and harassment at work. The expansion runs across jurisdiction, powers and membership, and it is paired with amendments to the underlying legislation.
For workers in the public sector and local government, and for the agencies and councils that employ them, this changes where a complaint goes and what the forum can do about it. The sections below take the main changes one at a time.
A one-stop shop for bullying and sexual harassment.
The headline change is that the Commission now operates as a one-stop shop for public sector and local government employee complaints about workplace bullying and sexual harassment. Two powers sit behind that description. The first is the power to make stop-orders, which are orders directing that the bullying or harassing conduct stop. A stop-order is forward-looking. It is designed to end the conduct and make the workplace safe, rather than only to compensate after the event. The second is the power to award damages of up to $100,000, which allows the Commission to compensate a worker for the harm the conduct has caused.
Together these give affected workers a dedicated state forum for complaints that previously had no clear single home in the NSW system. A worker no longer has to piece together a remedy from scattered avenues. There is now a body with the power both to stop the conduct and to award compensation for it.
The small claims cap: from $20,000 to $100,000.
The reforms also lifted the cap on the Commission's small claims jurisdiction from $20,000 to $100,000. The small claims stream is a simpler, lower-cost process than full litigation, and it is used mainly to recover underpayments. Raising the cap to $100,000 aligns the NSW limit with the federal standard and brings far more underpayment claims within reach of the simpler process. A worker owed a substantial sum in unpaid wages or entitlements can now pursue it in the small claims stream, rather than being forced into a larger and more expensive case.
New statutory objectives.
The Industrial Relations Act was amended to add two new statutory objectives: gender equality, and the elimination of workplace bullying and harassment. This is more than symbolic. The objects of an Act guide how a court or commission reads its provisions and exercises its discretion. When gender equality and the elimination of bullying and harassment are written into the objects, they become a lens through which the whole Act is applied. Over time, that shapes how individual cases are decided and how the Commission approaches the balance in a dispute, not just the outcome of any one matter.
A bigger Commission.
New jurisdiction needs people to run it. To carry the increased workload, including oversight of certain psychological injury disputes and return-to-work coordination, the Commission was expanded with new members through the middle of 2026. The appointments included Deputy President Janet McDonald and Deputy President Tony Howell, along with additional commissioners. A larger bench matters in practice. Anti-bullying, harassment and safety work is time-sensitive, because the point of a stop-order is to end conduct that is happening now. Without enough members to hear these matters promptly, the new powers would lose much of their value. The expansion is what makes the reforms workable.
Work health and safety and compliance.
The reforms also touched the enforcement side of work health and safety. Compliance with approved codes of practice became mandatory. Previously an approved code of practice was largely guidance, admissible as evidence of what was reasonably practicable but not a rule in itself. Making compliance mandatory raises the codes from guidance to obligation, which changes what a duty-holder has to do and what a failure looks like. Alongside that, safety enforcement powers were broadened, including expanded union entry permit rights connected to testing for hazardous substances. The combined effect is a stronger enforcement framework, backed by a Commission with a wider role.
What it means, and how to use it.
For a worker facing bullying, sexual harassment, an unpaid entitlement or a safety failure, the practical message is that there are now clearer avenues, and the Commission can do more than it once could. But the reforms do not make the process automatic. Each avenue has its own rules, its own evidence needs and, in most cases, a time limit. A bullying or harassment application is stronger when the conduct is documented as it happens. An underpayment claim depends on the pay records. A safety complaint depends on the state of the workplace being captured.
The through-line is the same one that runs through any legal matter. The early steps decide a great deal. Our note on the first thirty days of a matter is written for criminal cases, but the lesson holds here too: identify the right forum, act within time, and preserve the record before it is lost. Where the choice of avenue is not obvious, advice at the start is worth more than it costs.
Primary sources: the reforms are set out in the NSW Government's announcements on the workplace reform package, passing major reforms to protect workers, the flagship legislation to prevent psychological and physical workplace injuries, and the boost to the Industrial Relations Commission. The changes amend the Industrial Relations Act 1996 (NSW) and connect to the Work Health and Safety Act 2011 (NSW).
Common questions
What did the Minns Government's IRC reforms do?
They expanded the jurisdiction, powers and membership of the NSW Industrial Relations Commission so it can act as a hub for worker safety, disputes and anti-bullying. The Commission can now deal with public sector and local government bullying and sexual harassment complaints, issue stop-orders, and award damages up to $100,000. The small claims cap rose from $20,000 to $100,000, new statutory objectives were added, and the Commission was expanded.
Can the NSW Industrial Relations Commission deal with workplace bullying and sexual harassment?
Yes. It operates as a one-stop shop for public sector and local government employee complaints about workplace bullying and sexual harassment. It can make stop-orders directing that the conduct stop and can award damages of up to $100,000. This gives affected workers a dedicated state forum alongside existing federal options.
What is the small claims cap in the NSW Industrial Relations Commission?
It rose from $20,000 to $100,000, aligning the state limit with the federal standard. The small claims stream is a simpler, lower-cost process used mainly to recover underpayments, so more underpayment claims, up to $100,000, can now be dealt with there.
What are the new statutory objectives of the NSW Industrial Relations Act?
Gender equality and the elimination of workplace bullying and harassment were added as explicit statutory objectives. Objectives guide how the Commission exercises its powers and how the Act is read, so they shape the whole framework, not just individual cases.
Why was the NSW Industrial Relations Commission expanded?
To handle the increased workload and new jurisdictions, including oversight of certain psychological injury disputes and return-to-work coordination. Through mid-2026 new members were appointed, including Deputy President Janet McDonald and Deputy President Tony Howell, along with additional commissioners, so the new work can be heard promptly.
What changed for work health and safety in NSW?
Compliance with approved codes of practice became mandatory, rather than only guidance. Safety enforcement powers were broadened, including expanded union entry permit rights connected to testing for hazardous substances. Together with the Commission's expanded role, these strengthen work health and safety enforcement.
To speak to a lawyer about an industrial, employment or public sector matter, call Aaron Kernaghan on 0421 717 019.
This article is written by Aaron Kernaghan at Good Legal Lawyers, as at 28 August 2026. It is commentary and reflects the personal opinion of the author only. It is not legal advice, it is not a substitute for advice on your own matter, and it does not purport to be accurate or complete. Any matter referred to may be before a court or tribunal. For advice on a specific matter, contact Aaron Kernaghan on 0421 717 019 or contact the firm.
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