Maurice Blackburn warns reforms tip balance of power towards employers and insurers at expense of Queensland workers

Maurice Blackburn has warned that the Queensland Government's proposed industrial relations and workers' compensation reforms represent the most significant rollback of workers' rights in more than a decade, shifting power away from workers and their unions and towards employers and insurers.

The firm's Queensland head of Employment and Industrial Law, Patrick Turner, said the Industrial Relations and Other Legislation Amendment Bill 2026 would fundamentally alter the balance of Queensland's workplace relations system while making it harder for injured workers to access compensation and support.

"Taken together, these reforms weaken the ability of workers to bargain collectively, restrict their capacity to take industrial action, and make it harder for injured workers to access compensation when they need it most."

"When the employer writes the rules, appoints the decision-maker and can effectively end disputes by ministerial declaration, the balance has shifted too far."

Mr Turner said proposed industrial relations changes would significantly curtail workers' bargaining power by reducing the window for protected industrial action and creating broad new powers for government intervention.

"The ability to withdraw labour, or the prospect of doing so, is workers' most important source of bargaining power. Curtailing that ability inevitably shifts leverage towards the employer."

Mr Turner also expressed concern about provisions allowing ministerial intervention in industrial disputes and changes that could further restrict outcomes available to workers in arbitration.

"Queensland workers have seen versions of these measures before. They risk creating a system where government employers hold substantially greater power in negotiations while workers and their representatives face increasing constraints."

Mr Turner said the reforms extended beyond industrial relations, with significant changes proposed to Queensland's workers' compensation scheme.

"At a time when there is growing recognition of psychosocial hazards and workplace mental health risks, Queensland is moving in the opposite direction by making it harder for psychologically injured workers to access compensation."

He said the broader community would ultimately bear the cost of excluding injured workers from support.

"When workers cannot access compensation, the consequences do not disappear. The burden is simply transferred to families, the public health system and social security services."

Maurice Blackburn Principal Alison Barrett said the proposed workers' compensation reforms would create new barriers for injured workers while expanding the powers of insurers and prospective employers.

Under the proposed legislation, workers suffering psychological injuries would face a higher threshold to have claims accepted, with employment needing to be "the major significant contributing factor" to their condition rather than simply "a significant contributing factor".

"These changes create higher hurdles for injured workers at almost every stage of the process. Instead of focusing on making workplaces safer, the reforms focus on reducing access to compensation."

Ms Barrett said the reforms were particularly concerning for workers experiencing psychological injuries.

"People suffering psychological injuries are often already dealing with trauma, stress and uncertainty. Raising the legal threshold is designed to reduce the number of accepted claims, but it does nothing to prevent psychological harm occurring in the first place."

Maurice Blackburn also criticised proposed changes affecting police, firefighters, paramedics and other first responders by narrowing existing PTSD protections.

"Queensland's first responders should not have established mental health protections wound back. These workers are repeatedly exposed to traumatic events in the course of protecting the community and deserve strong support when injury occurs."

The firm has also raised concerns about changes that would reduce the time available to challenge a rejected workers' compensation claim or claim closure decision from three months to just 20 business days.

"People who have been injured are already under enormous pressure. Cutting the review period from three months to 20 business days creates a significant risk that workers will lose their right to challenge a wrong decision simply because they have not had enough time to obtain advice."

Another significant concern is a new power allowing insurers to effectively reverse previously accepted claims.

"An accepted claim should mean something. These reforms would allow insurers to stop compensation payments on the basis that they later form a different view about information they say should have been considered from the outset."

Ms Barrett said injured workers would also face additional red tape through new monthly reporting obligations backed by penalties, payment suspensions and potential fraud allegations.

"Workers recovering from injury should be focused on their rehabilitation, not navigating unnecessary bureaucratic hurdles with serious consequences if mistakes are made."

The reforms would also allow prospective employers, with a worker's written consent, to access information about previous compensation claims.

"A workers' compensation claim should not follow someone into their next job interview. Many workers will feel pressured to consent if they want to remain in contention for a job, creating a real risk that past injuries become a barrier to future employment."

Ms Barrett said unions and worker advocates were right to be deeply concerned by the cumulative effect of the proposed changes.

"Higher thresholds to get in. Less time to challenge decisions. More power for insurers after a claim is accepted. More reporting obligations on injured workers. More access for prospective employers to a worker's compensation history."

"These reforms collectively move Queensland's workers' compensation system away from supporting injured workers and towards limiting access to entitlements. Queensland workers deserve better."