Whether an employer was operating or employing staff prior to 27 March 2006 is important because it determines the instrument that the employer may be bound to.
27 March 2006 is an important date as it is when many employers moved into the national system from the state system. This has an impact on the rights and obligations of both employers and employees who were previously covered by the state system.
1 January 2010 is the date that many elements of the national Fair Work system started such as modern awards, the National Employment Standards and TAS, SA, NSW and QLD referring their industrial relations powers to the Commonwealth. This affected the vast majority of employers and employees, including many of those who were still covered by the state system.
Those corporations that fall under the definition of paragraph 51(xx) of the Constitution (Corporations power), being;
- a foreign corporation
- a financial corporation formed within the limits of the Commonwealth; or
- a trading corporation formed within the limits of the Commonwealth.
Employers who are not constitutional corporations may include:
- sole traders
- partnerships
- certain state government public sector employers
- corporations whose predominant activity is not trading or financial (for example some charities).