Most, but not all employers and employees in Australia are part of the national workplace relations system (national system). It's sometimes known as the Fair Work system. This sets the rights and obligations of employers and employees in the workplace.
The national system makes sure employers and employees have clear entitlements and rules to follow.
If an employer or employee is not part of the national system, the industrial relations system in their state or territory covers them.
The Fair Work Act defines national system employee (section 13) and national system employer (section 14).
Who the national system covers
You are part of the national system if you work or employ people:
- anywhere in Australia in a constitutional corporation (see definitions to understand this)
- in the private sector in New South Wales, Queensland or South Australia
- in the Australian Capital Territory
- in Victoria, except as a law enforcement officer or an executive in the public sector
- in the Northern Territory, except as a member of the Police Force
- in the private sector or local government sector in Tasmania
- on Norfolk Island, the Territory of Christmas Island or the Territory of Cocos (Keeling) Islands.
Who is not part of the national system
Some employers and employees are outside the national system. You are outside the system if you work or employ people:
- based in Western Australia and are not a constitutional corporation (see definitions to understand what this covers)
- as an independent contractor or sole trader
- as an unpaid volunteer
- as an unpaid trainee or intern through a school, university or other institution
- in New South Wales, Queensland, South Australia or Western Australia in the state public sector or local government
- in Tasmania in the state public sector.
Coverage by location
See who the national system covers in each location.
Location |
In the national system |
Outside the national system |
Australia-wide |
Commonwealth employees Employees of Commonwealth authorities Employees of waterside employers, maritime employers, and flight crew officers in interstate or overseas trade or commerce. |
None |
Australian Capital Territory |
All employees |
None |
New South Wales |
Private enterprise employees |
State public sector employees Local government employees |
Northern Territory |
All employees except members of the Police Force |
Members of the Police Force |
Queensland |
Private enterprise employees |
State public sector employees Local government employees |
South Australia |
Private enterprise employees |
State public sector employees Local government employees |
Tasmania |
Private enterprise employees Local government employees |
State public sector employees |
Victoria |
All employees except some in the State public sector |
State public sector employees at executive and higher managerial levels Law enforcement officers |
Western Australia |
Employees of employers that are constitutional corporations* (including Pty Ltd companies). |
Local government employees State public sector employees Employees of employers that are not constitutional corporations including an individual, a sole trader or partnership |
Norfolk Island, the Territories of Christmas Island and Cocos (Keeling) Islands |
All employees |
None |
Definitions
‘constitutional corporation’
An employer is a constitutional corporation if the business is:
- a financial corporation formed in Australia
- a trading corporation formed in Australia, or
- a foreign corporation (a corporation incorporated outside Australia) that does business in Australia.
Note: local governments in Queensland, New South Wales, South Australia, and Western Australia can be constitutional corporations, but are not national system employers. These workplaces may still be covered by the general protections, bullying and sexual harassment laws.
The definition is in section 12 of the Fair Work Act 2009 and paragraph 51(xx) of the Commonwealth Constitution.
'partnership'
A partnership is an organisation in which two or more people carry on a business together. It is not a constitutional corporation.
‘private enterprise’ and ‘private sector’
Most businesses, small, medium or large, are private. They are managed by individuals or by independent companies, not by the government. Most private companies are constitutional corporations.
‘public sector’
The public sector refers to Commonwealth (Federal) government, State and Territory governments and local government. It includes departments, agencies and authorities such as:
- Federal Police
- Australia Post
- SafeWork Australia
- the ATO
- the ABC.
‘foreign or overseas company’
A company formed overseas may have employees in Australia. Usually, these employees are covered by the national system.
‘labour hire worker’
A labour hire worker, or agency staff, is someone who has a work contract with a labour hire agency.
Examples of labour hire workers or agency staff are:
- a nurse working for a nursing agency
- a cook working for a hospitality agency.
These employees are part of the national system because their employer is a private enterprise.
Note: in an unfair dismissal claim, labour hire workers can make a claim against the agency that employs them. They cannot claim against the ‘host’ company that their agency places them in.
State industrial relations tribunals
If you are not covered by Australia's national workplace relations system, one of the state industrial relations tribunals may be able to help.
- Industrial Relations Commission of New South Wales — The Industrial Relations Commission of New South Wales regulates industrial affairs within the NSW state.
- Queensland Industrial Relations Commission — The Queensland Industrial Relations Commission is an independent tribunal established to conciliate and arbitrate industrial matters within the Queensland state.
- South Australian Employment Tribunal — The South Australian Employment Tribunal is the forum for resolving workplace-related disputes and issues.
- Tasmanian Industrial Commission — The Tasmanian Industrial Commission is the industrial tribunal for Tasmania. The Commission primarily conciliates and arbitrates to resolve industrial disputes.
- Western Australian Industrial Relations Commission — The Western Australian Industrial Relations Commission is an independent tribunal dealing with industrial matters in Western Australia.