There are different state and federal workplace relations systems operating in Australia. it is important to understand which system you are covered by.

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
• employed by sole traders, partnerships, other unincorporated entities and non-trading corporations in New South Wales, Queensland, South Australia and Tasmania.

Special rules for sole traders, partnerships and others moving into the national workplace relations system

From 1 January 2010, sole traders, partnerships, other unincorporated entities and non-trading corporations in New South Wales, Queensland, South Australia and Tasmania joined the national workplace relations system. These employers were previously covered by their own specific state systems

There are special rules for these employers to help them move into the national workplace relations system, including:

• State awards that covered there employers and employees before 1 January 2010 (known as Division 2B State awards) will continue to apply until 31 December 2010, after which employees will be covered by the relevant Modern Award. Employees under State awards must receive conditions that are at least equal to the minimum entitlements in the NES (to the extent that they apply) and the national minimum wage.
• State employment agreements (known as Division 2B State agreement) will continue to apply until terminated or replaced. Employees under State employment agreements must also receive conditions that are at least equal to the minimum entitlements in the NES (to the extent that they apply) and the base rates of pay in an applicable State award (while operative), or the relevant modern award or, if there is no operative State award or relevant modern award, the national minimum wage.

Who isn’t covered by the national workplace relations system?

The following are generally NOT covered by the national workplace relations 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.

The Western Australian government has chosen not to join the national workplace relations system, so sole traders, partnerships, other unincorporated entities and non-trading corporations in Western Australia remain in their state system. Some of these employers in Western Australia may be covered by transitional awards if they were covered by a Federal award as at 26 March 2006. These transitional awards continue to apply until 27 March 2011.