Inspection of workplaces
The Role of the Office of Industrial Relations
NSW Industrial Relations (NSW IR) is part of the NSW Department of Services Technology and Administration. It is responsible for ensuring that employers and employees comply with NSW industrial relations laws. These laws cover matters such as minimum pay rates, conditions of employment, leave entitlements and employment records.
Why are workplaces inspected?
Inspectors may visit a workplace as part of an investigation into an alleged breach of NSW industrial relations laws by a current or former employee. Inspectors also undertake regular inspections of workplaces in key industries and regions throughout NSW.
topWho has the power to inspect employment records?
Every Inspector carries a certificate of authority. An employer is entitled to request the Inspector to produce his/her official certificate of authority.
Other government inspectors (including Australian Taxation Office and WorkCover NSW inspectors) also have rights to inspect workplace records. In certain circumstances, authorised union officials also have rights to inspect employment records.
What happens during a workplace inspection?
An Inspector will first contact the employer or person in charge at the workplace. Information may be provided about the purpose of the inspection.
Usually, a workplace assessment will be conducted during the Inspector's first visit to the workplace.
The employer will be interviewed about the employment records and employment conditions in the workplace. The Inspector may also interview some or all of the employees. By law, if requested by the Inspector, employers are required to provide employment records.
Depending upon the result of the workplace assessment, the employer will be advised by the Inspector of any action that is to be taken.
How long will a workplace inspection take?
Usually, the workplace assessment will take up to an hour. The Inspector may schedule additional meetings after this to obtain further information, or to clarify information that has already been provided.
What are the benefits of being inspected?
Workplace inspections ensure that employers are aware of and understand their responsibilities to their employees. Through these inspections, employers and employees gain more information about their rights and entitlements.
Workplace inspections protect the legal rights of employees and ensure that employers who are complying with NSW industrial relations laws are protected from unfair competition from unscrupulous employers.
Are employers told about the outcome of the inspection?
Employers are encouraged to stay in contact with the Inspector who is undertaking their workplace inspection. If workplace compliance issues are identified, they will be contacted by an Inspector. Usually, this will occur within six to eight weeks of the inspection.
Will employees find out about the workplace inspection?
Yes. In some cases, Inspectors may need to interview employees to confirm employment records.
Employees will not be advised formally of the outcome of the workplace inspection. Under NSW's freedom of information laws, employees can seek to obtain information relating to their employment records. The employer will be contacted if an employee requests information.
Who else will find out about the workplace inspection?
The NSW IR will not disclose information to any third party, except where obliged by State or Commonwealth law. The OIR will co-operate with any lawful investigation undertaken by another government agency. Employer details are not provided to unions, other employers or employer associations.
What happens if an Inspector identifies a breach of a law or award?
Inspectors have general powers to investigate any suspected breach of NSW industrial relations legislation or an award.
If a breach is identified, the Inspector may prosecute the employer. If this occurs, the employer will receive a formal document called a 'Notice to Employer' setting out the alleged breaches.
If the Inspector considers that a breach is relatively minor in nature, the Inspector may instead issue a Penalty Infringement Notice (an on-the-spot fine), and direct the employer to fix the breachs and/or formally caution them.
How can an employer check compliance with NSW industrial relations laws?
Employers have the responsibility to comply with NSW industrial relations laws.
Information for employers concerning NSW industrial relations laws (pdf - 217kb) describes the major legal responsibilities of employers.
At the back of this booklet, a checklist (pdf - 145kb) is provided to assist employers to check their workplace compliance with NSW industrial relations laws.
Need more information about NSW industrial relations laws?
Information concerning pay rates and employment conditions is available from the Office of Industrial Relations on 131 628.
If an employer is unaware of their rights and responsibilities, they may wish to obtain advice from an employer association, accountant or solicitor.