Last updated: February 2026
Employment law refers to the body of laws that govern the relationship between an employee and their employer.
In short: Employment law in Western Australia determines which industrial relations system applies to your business and what obligations you must meet. Most private employers fall under the Fair Work Act 2009, while some operate under WA’s Industrial Relations Act 1979 – affecting pay, leave, termination and compliance duties.
This article outlines how to determine your coverage and what employers should check to stay compliant.
What is the employment law in Western Australia?
Employment of all workers in Western Australia is governed by a complex relationship of Federal (or national fair work system) and State legislation (or State industrial relations system) as well as common law.
In some areas, such as workers’ compensation and superannuation, regulation can extend to the relationship between principals and independent contractors.
The various pieces of legislation relevant to Western Australia make provision for:
- A process to determine minimum wages and a safety net of terms and conditions of employment (the award process);
- The regulation of employer and employee associations;
- Equal remuneration for work of equal value;
- Minimum leave entitlements, for such areas as annual leave, parental leave, personal leave (which includes sick leave and carer’s leave) and family and domestic violence leave;
- Minimum termination entitlements;
- Regulation of workers’ compensation and occupation health and safety;
- Minimum entitlements to superannuation contributions;
- Prohibitions against unlawful discrimination;
- Prohibitions against unlawful termination of employment;
- A framework for collective bargaining and the arbitrated resolution of industrial disputes; and
- Minimum notification and consultation entitlements in circumstances of redundancy or workforce restructure.
Overview on latest workplace law changes
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How does employment law work in Western Australia? Key Federal and State legislation
The Fair Work Act 2009 (FW Act) governs national system employers, primarily constitutional trading corporations. It provides unfair dismissal protections, workplace representation rights, and a safety net of 10 National Employment Standards (NES), alongside industry-specific modern awards. The FW Act promotes collective bargaining while phasing out individual agreements, ensuring employees are "better off overall" under negotiated agreements.
The Industrial Relations Act 1979 (IR Act) applies to non-constitutional corporations, including sole traders and partnerships. It establishes the Western Australian Industrial Relations Commission (WAIRC), regulates employer and employee organisations, and allows for state awards and industrial agreements. The IR Act favours collective bargaining but permits individual arrangements known as “employee employer agreements” (EEAs), provided they do not disadvantage employees.
The Minimum Conditions of Employment Act 1993 (MCE Act) sets baseline entitlements for wages, leave, redundancy, record-keeping, and public holidays for employees of non-constitutional corporations in WA.
FAQs: employment law in WA
Which employment law applies to my business in Western Australia?
Most private sector employers in WA are covered by the national system under the Fair Work Act 2009. However, certain sole traders, partnerships and unincorporated businesses may fall under WA’s state system governed by the Industrial Relations Act 1979.
How do I know if I am in the national or WA state industrial relations system?
Your coverage depends on your business structure. Constitutional corporations (such as Pty Ltd companies) are generally in the national Fair Work system, while some non-incorporated entities may remain in the WA State system.
What are the key employment law obligations for WA employers?
WA employers must comply with minimum pay rates, leave entitlements, award or agreement conditions, lawful termination processes, workplace health and safety duties, and anti-discrimination laws.
What happens if a WA employer gets employment law wrong?
Non-compliance can result in underpayment claims, penalties, unfair dismissal applications, adverse action claims and regulatory investigation.
Key employer considerations
- Unlawful and unfair dismissal protections: Both State and Federal laws provide extensive rights, with tribunals empowered to order reinstatement, back pay, or compensation.
- Transfer of business provisions: National system employers must comply with transfer of business rules, potentially carrying over employee entitlements from previous employers unless a strategic approach is adopted.
- Freedom of association: Employees and unions are protected against discrimination based on union membership. Employers must exercise caution when dealing with union-related matters to avoid statutory penalties.
Free legal document review
Business Law WA is offering a complimentary Red Flag Review of documents including employment contracts and workplace policies (the terms of which can be accessed here).
Employment laws in WA are complex and supplemented by common law principles. Employers should seek legal advice to ensure compliance.
To speak to one of Business Law WA's employment lawyers, please contact the team at [email protected] or 08 9365 7746.
Our Employee Relations Helpline can also offer timely, expert support on 08 9365 7660 or at [email protected].
CCIWA Members receive a discounted rate on our legal services and free unlimited use of our Employee Relations Helpline. Not a Member? No problem, our team can support you, too!
This article is authorised by Business Law WA, an incorporated legal practice and wholly-owned subsidiary of CCIWA. The content of this article is general in nature and is not legal or professional advice and should not be relied upon as such.
