Laws covering employment in NSW
In 2006, the former federal government made laws that resulted in substantial changes to the industrial relations rules that apply to employers and employees in NSW.
Further changes were made to the federal industrial relations system by the current federal government which commenced in March 2008. Additional changes will be implemented in July 2009 and January 2010.
All NSW employers and employees need to know the federal and NSW industrial relations laws that apply to their workplace, and their rights and responsibilities under these laws.
The following information is a guide for NSW employers and employees only. Businesses may need to seek legal advice to determine whether NSW industrial laws apply to them.
Check here if your workplace is covered by State or Federal legislation
Which laws apply to my workplace?
Constitutional corporations
An employer who is a constitutional corporation will generally be covered by federal laws.
Sole traders and partnerships
If an employer is a sole trader or a partnership this means that the employer is unincorporated, and the employment relationship does not involve a constitutional corporation. NSW industrial relations laws continue to apply to this employer.
You can use the State or Federal look-up tool on this website to find out which laws apply to your workplace.
topWhat is a constitutional corporation?
A constitutional corporation is a body incorporated under an Australian law and engaged in, or substantially engaged in, trading or financial activities. Generally, these are companies which carry out commercial activities with a view to earning revenue. Incorporated associations and co-operatives may also be constitutional corporations.
A trading corporation is one which buys, sells, exchanges or barters goods or services or, more generally, is in the business of commerce. Such trading activities must form a substantial or significant proportion of that corporation's activities.
A financial corporation is one which deals substantially or extensively in commercial dealings in finance. Financial activities may refer to borrowing or lending, banking or insurance and also to providing management and advisory services in relation to financial matters.
Federal industrial relations laws apply to all employers defined as constitutional corporations. For more information contact the Fair Work Infoline on 13 13 94.
From 27 March 2006, in relation to corporations, State awards became Notional Agreements Preserving State Awards (NAPSAs), while awards principally covering single enterprises became Preserved State Agreements (PSAs).
For information regarding NAPSAs and PSAs contact the Fair Work Infoline on 13 13 94.
Which NSW laws still apply to my business?
Several NSW laws continue to apply to all businesses operating in NSW, regardless of their industrial relations coverage. These include NSW laws on occupational health and safety, workers compensation, public holidays, long service leave, jury servic and trading hours.
Inspectors authorised under NSW industrial relations and occupational health and safety laws are permitted by NSW law to inspect all employers' employment records, including time sheets, wages books and leave records.
What will it cost if an employer decides to incorporate?
Costs associated with incorporation include registration fees, legal and accounting expenses, as well as additional paperwork. For more information contact the Australian Securities and Investment Commission (ASIC) on 1300 300 630.
Need more information?
The NSW IR provides a range of services to help employers understand their rights and obligations under NSW industrial laws.
