The dropping of teacher protections is among the changes to a wide-ranging LGBTQI anti-discrimination bill to ensure it can get moving through state parliament during the week.

At present, non-government school employers can discriminate against school staff by terminating their employment because of their sexual orientation or transgender status. They can also expel students for the same reason.

Independent MP Alex Greenwich defended the compromise, saying urgently needed protections centered on the safety and dignity of transgender people, sex workers and rainbow families could become law.

“It breaks my heart that I’ve had to take out these reforms which I have worked on my entire political career,” he told reporters on Monday.

“But in the interest of achieving what we can today, I have scaled back my bill to some of the priority areas for the safety, dignity and identity of the LGBT community.”

Independent Education Union of Australia NSW/ACT Branch Secretary Carol Matthews said her organisation is ‘deeply concerned’ by Greenwich dropping the protections.

“We are disappointed that Mr Greenwich did not consult the union representing the teachers and school staff who are impacted,” Matthews said in a statement.

“Teachers, support staff and school leaders have shared heartbreaking stories with the IEU of the discrimination they’ve experienced in the workplace.”

At present, the NSW Anti-Discrimination Act allows private educational authorities to discriminate against people on the basis of their sex, disability, sexual orientation, transgender identity or marital or domestic status.

“Such treatment is unwelcome in schools and would be unlawful in every other industry,” Matthews said.

“School employers have nothing to fear from modern community standards – they can still thrive without the need to discriminate. Changes to the Act could still allow religious schools to build communities of faith central to their ethos and character.”

The union has asked that Greenwich restore protections for LGBTQI+ school staff and students to his Equality Bill, and for the NSW Government to implement full protections from all forms of discrimination in non-government schools.

Meanwhile, the watered-down changes will still likely face bitter opposition from conservative MPs, forcing the coalition party room to adopt a position days out from three crucial by-elections.

But it has won the support of NSW Premier Chris Minns, who will recommend state cabinet support the changes.

“Alex Greenwich’s amended Equality Bill, I think, should pass the parliament,” Minns said.

The reforms still on the table include protections for intersex children from unnecessary medical intervention and a domestic violence offence for “outing” or threatening to “out” an LGBTQI partner.

People will also be permitted to change their gender on birth certificates without the need for surgery, mirroring measures already in place in most other states and territories.

The bill has won support from LGBTQI communities, progressive faith groups and the Australian Medical Association.

Equality Australia said it was an opportunity to remove the “archaic, cruel and discriminatory laws” that impacted LGBTQI people every day.

“NSW has some of the worst laws when it comes to discrimination and disadvantage experienced by LGBTQI+ communities,” chief executive Anna Brown said.

“The Equality Bill will change this.”

Greenwich said it had become clear in recent months that Labor was unwilling at this stage to remove the exemption for private schools in the state’s anti-discrimination act.

That could change, with a comprehensive review of the act completed by the NSW Law Reform Commission in February.

“Once they make those recommendations, the Government and no member of parliament will be able to hide from them,” Greenwich said.