The federal government won't have to worry about a by-election in former Labor minister Robert McClelland's electorate, after he missed out on a job with the NSW industrial umpire.


It's understood Mr McClelland, who's stepping down from his NSW seat of Barton at the September election, was on the shortlist for the role of a commissioner with the NSW Industrial Relations Commission.


A by-election could have been triggered in his seat if he had been given the job.


But NSW Treasurer and Industrial Relations Minister Mike Baird on Tuesday confirmed Sydney barrister Peter Newall had been appointed to the post ''following an exhaustive merit-based process''.


''We are delighted with his appointment and believe his significant experience in the military, as a member of the NSW Bar and more than 30 years as an industrial relations practitioner will ensure he makes a valuable contribution to the IRC,'' Mr Baird said in a statement.


A spokesman for Mr Baird could not confirm if Mr McClelland had applied for the job.


Mr McClelland was dumped from cabinet in 2012 after speaking out in favour of Kevin Rudd's unsuccessful quest to regain the Labor leadership from Prime Minister Julia Gillard.


A by-election loss would have taken Labor's numbers in the House of Representatives to 70. But the government could have survived with the support of the six independents and one Greens MP on the crossbenches.


AAP