More than 100 workers are expected to lose their jobs when AGL's Torrens Island Power Station B closes in 2028, as the company transforms the island into a low-emissions industrial energy hub.
The facility is the first power station to be scheduled to close since the Net Zero Economy Authority Act was introduced.
The new laws are expected to set a precedent as a Fair Work hearing starts in Adelaide this week determining what obligations power operators have to employees facing redundancies due to the energy transition.
AGL has proposed a $7500 cap on training and financial advice for each of the 100 workers.
The amount is well short of the $33,500 per worker being sought by the Australian Services Union, Professionals Australia, Australian Worker's Union and Communications, Electrical and Plumbing Union.
That includes $25,000 for retraining, $8500 for career and financial advice and between 160 and 240 hours of paid time off for workers to help transition from the industry.
ASU national assistant secretary Scott Cowen said the laws should deliver a just transition for the workers they were designed to protect.
"I don't think it's going to be an easy transition at all," he said.
"Some of these workers have worked for decades in the power station, and they're facing redundancy when the plant closes without significant assistance."
He said many workers would find it difficult to gain employment or the level of pay and conditions they previously held.
The Fair Work Commission's decision is likely to shape how other power station closures handle workforce redundancies, with the outcome to be closely watched by workers from NSW's Eraring and Victoria's Yallourn power plants.
The Net Zero Economy Authority pressed the energy giant to provide further financial support to workers losing contracts in November 2025 after the authority reportedly found "deficiencies" in AGL's support proposals.
The original offer which included a $5000 assistance package for individuals impacted was found to be "insufficient" for suitable financial advice and tailored support.
The company, which made a net profit of $631 million in the 2026 financial year, announced it would be closing its Torrens Island B gas station seven years earlier than expected after the first of the station's four power units was mothballed in 2021.
The remaining three will cease operations in June 2028.
The office of federal Industry Minister Tim Ayres referred questions about the case to NZEA, which has been contacted for comment.
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