The head of the workplace watchdog will not seek reappointment when her term ends in July, allowing the Albanese government to task a new leader to enforce its promised criminalisation of underpayments.

Fair Work Ombudsman Sandra Parker confirmed she told Workplace Relations Minister Tony Burke in February she would not seek to renew her term when it expires in July. The government advertised the $455,000 position in The Australian Financial Review this week.