HR managers are expected to know their obligations under federal and state industrial relations legislation, such as what their minimum obligations are in regard to employees' pay and conditions, what role union officials can play, and managing potential industrial action. 

Industrial relations in Australia was for many years regulated by the federal Australian Industrial Relations Commission and its State counterparts (the Territories were regulated by the federal Commission). In the early 1990s, Victoria referred its constitutional industrial relations powers to the Commonwealth, thus entering the federal system. The federal government used the Corporations power in the Constitution to further federalise the industrial relations system in 2006, with the Workplace Relations Act (colloquially known as ‘WorkChoices’) extending to all employees of ‘constitutional corporations’.

 

Certain categories of employees were exempt from the federal system, including 'crown employees' ie. state and federal government employees, and employees of non-constitutional corporations, such as trusts, sole traders and some partnerships.

 

On 1 January 2010, the remaining States (with the exception of Western Australia) referred their industrial relations powers to the Commonwealth, allowing the Fair Work Act to cover most of Australia’s employers and their employees.  A new tribunal, Fair Work Australia, replaced the Australian Industrial Relations Commission.

 

As Western Australia was the only jurisdiction that did not refer its industrial relations (IR) powers to the Commonwealth on 1 January 2010, the WA IR system continues to cover employers that are not a ‘constitutional corporation’ and their employees. In general terms, this includes an employer who is a sole trader, some partnerships and some trust arrangements.