News
Which workplace system am I covered by?
10th May 2010
There are different state and federal workplace relations systems operating in Australia. It can be difficult to tell which system you're covered by.
Before 1 January 2010, the national employment system covered approximately 85% of businesses in Australia. The system features a number of rights and obligations that employers and employees must make sure that they comply with:
- The National Employment Standards (NES) take effect from 1 January 2010 and replace the non-pay rate provisions of the Australian Fair Pay and Conditions Standard (the Standard).
- Modern awards (which include pay rates), also generally take effect from 1 January 2010.
The national workplace relations system
Employees covered by the national workplace relations system include those:
- employed by a constitutional corporations (these are corporations that are trading or financial, usually Pty Ltd or Ltd companies)
- employed in Victoria, the Northern Territory or the ACT
- employed by the Commonwealth or a Commonwealth authority
- a waterside employee, maritime employee or flight crew officer employed in connection with interstate or overseas trade or commerce.
From 1 January 2010, sole traders, partnerships, other unincorporated entities and non-trading corporations in New South Wales, Queensland, South Australia and Tasmania are covered by the national system rather than their own specific state system. Employers that were already operating under the national system continue to be covered (eg. Pty Ltd businesses, employers in the ACT, NT and Victoria).
There are special transitional rules for employers in these states to help them move into the national system, including:
- State awards that covered these employers and employees before 1 January 2010 continue to apply and are known as Division 2B State awards. They automatically terminate at the end of 31 December 2010 (except for State enterprise awards). These employers and employees are then covered by a relevant modern award.
- State employment agreements that covered these employers and employees continue to operate until terminated or replaced and are known as Division 2B State employment agreements.
However, state awards and state employment agreements operate alongside the National Employment Standards (NES). This means that employees must receive at least the minimum entitlements in the NES (to the extent that they apply), along with any other entitlements in their state award or workplace agreement (provided that these are at least as beneficial as the corresponding NES entitlement(s)).
The Western Australian government has chosen not to join the national system at this stage. Sole traders, partnerships other unincorporated entities and non-trading corporations in West Australia continue to be covered by their state system.
Who isn’t covered by the national system?
The following are generally NOT covered by the national system:
- Most state government public sector and local government employers (however in Victoria most of these employees are covered)
- Western Australian corporations whose main activity is not trading or financial
- Western Australian sole traders, partnerships or unincorporated private sector employers. However some of those Western Australian employers may be covered by federal transitional awards until 27 March 2011 if they were covered by these awards on 27 March 2006.
Need help with modern awards? Call the Fair Work Infoline on 13 13 94
From www.fairwork.gov.au
