Defining NSW’s Fair Work Battles of 2025: Pay, Power, and the Changing Shape of Work

2025 has been a landmark year for workplace relations in New South Wales, with a series of high-profile Fair Work and industrial disputes redefining the balance between employers, workers, and the state. From the rail networks to hospitals and the gig economy, the year’s legal battles have highlighted the growing tension between fair pay, flexible work, and accountability.

At the centre of attention was the Sydney Trains industrial dispute, one of the longest-running public sector negotiations in recent memory. Rail unions and the NSW Government clashed over pay and conditions, prompting Fair Work Commission intervention to halt industrial action early in the year. By May, a compromise was finally reached — a 12% wage rise over three years — ending months of disruption and setting a precedent for other public sector agreements.

Meanwhile, the State Wage Case of 2025 saw the NSW Industrial Relations Commission consider whether to align with the Fair Work Commission’s national 3.5% minimum wage increase. The decision underscored the continuing debate over how closely state wage systems should mirror federal rulings, particularly as cost-of-living pressures persist across NSW.

In the private sector, the Helensburgh Coal case reached the High Court, challenging what constitutes a “genuine redundancy.” The ruling clarified that employers must explore realistic redeployment options before cutting roles, especially when contractors are still engaged — a decision that could reshape redundancy practices in resource-heavy industries.

The year also saw major progress in gig worker protections, with new rules requiring platforms like Uber and DoorDash to follow due process before deactivating drivers. These changes, alongside NSW’s proposed reforms to extend basic employment rights to gig transport workers, mark a turning point in how digital labour is governed. Complementing this, the NSW Court of Appeal’s decision on Uber’s payroll tax obligations could have lasting effects on how platform businesses are taxed and regulated.

Finally, the 20% pay increase awarded to public hospital psychiatrists highlighted the strain on the state’s health workforce. The Industrial Relations Commission recognised severe staffing shortages and burnout, prompting an interim wage boost to help retain critical specialists.

Taken together, these cases paint a clear picture of a state in transition — one striving to balance innovation and flexibility with fairness and stability. In 2025, NSW’s Fair Work rulings didn’t just resolve disputes; they redefined what fair work means in an economy that’s changing faster than ever.

NSW’s Fair Work Battles of 2025