The Fair Work system

What is the Fair Work system?

The Fair Work system is Australia’s national workplace relations system. It is the name used in reference to the minimum employment laws and regulatory bodies that were created by the Fair Work Act.

The Fair Work system was created by the Fair Work Act 2009 and started on 1 July 2009.

Who is responsible for the Fair Work System?

Australia’s workplace relations laws are enacted by the Commonwealth Parliament. The practical application of the Fair Work Act in workplaces is overseen by the Fair Work Commission and the Fair Work Ombudsman.

Key elements of the Fair Work system

As set out in the Fair Work Act and other workplace legislation, the key elements of the workplace relations framework include:

• A safety net of minimum terms and conditions of employment (the National Employment Standards or NES), including the National Minimum Wage
• Awards that apply nationally for specific industries and occupations
• A system of enterprise-level collective bargaining underpinned by bargaining obligations and rules governing industrial action.
• Protections against unfair or unlawful termination of employment.
• Protection of workplace rights such as the right to engage in industrial activities, the right to be free from unlawful discrimination at work, and the right to be free from undue influence or pressure in negotiating individual arrangements.

The National Employment Standards, awards and the National Minimum Wage make up a safety net of entitlements for employees covered by the Fair Work system. Other workplace participants in the Fair Work system (such as regulated workers) have different rights and entitlements.

Who is covered by the Fair Work system?

The Fair Work system covers the majority of private sector employees and employers in Australia.

Employers that are an incorporated entity are generally classified as national system employers.

Who is not covered by the Fair Work System?

Some employees in Australia are not covered by the Fair Work system. They’re known as non-national system employees.

Non-national system employees include employees of the state public sector or local government in some states, some employees in Western Australia, and those not considered part of the national workplace relations system. This smaller group can include independent contract and seasonal workers.

As a general rule, if an employer or employee is not part of the national system, the industrial relations system in their state or territory covers them.

While certain employees in Australia are not formally covered by the Fair Work system, the Fair Work Act 2009 extends the following entitlements to non-national system employees:

• protection from unlawful termination
• unpaid parental leave and related entitlements under the National Employment Standards (NES)
• notice of dismissal or payment in lieu of notice under the NES
• prohibition on sexual harassment.
• paid family and domestic violence leave under the NES (from 9 June 2024).

The Fair Work system (and for employers, particularly the Awards component) can often seem difficult to navigate. But there is help out there. Step one? Ensure anything you research on Google is from the Fair Work Commission or Ombudsman (this will have .gov.au at the tail of their website domain name). Step two? Find yourself someone with expertise to give you good advice. Like to know more? If you’re an employer, give Bare Bones Consulting a call or shoot us a message here. We’ll point you in the right direction.