State or National? Which Employment System Covers You in WA
Western Australia is the only State that still runs its own private-sector industrial relations system alongside the national one. Which system covers a job is decided by how the employing business is structured, not by what the business does. Two businesses doing identical work can sit in different systems because one is incorporated and the other is not.
Who is in the WA state system
- Sole traders.
- Unincorporated partnerships, where none of the partners is a Pty Ltd entity.
- Unincorporated trust arrangements, where none of the trustees or other entities in the arrangement is a Pty Ltd entity.
- Incorporated associations and other not-for-profits without sufficiently substantial trading or financial activities to be a constitutional corporation.
Who is in the national Fair Work system
- Pty Ltd businesses.
- Partnerships where one or more partners is a Pty Ltd entity.
- Trust arrangements where one or more trustees or other entities is a Pty Ltd entity.
- Incorporated associations and not-for-profits with sufficiently substantial trading or financial activities.
The trap
A partnership or trust only sits in the state system if none of the partners or trustees is incorporated. A single Pty Ltd participant tips the whole arrangement into the national system. This catches small WA businesses that restructure without realising their employees' rights, awards and time limits have moved with them.
Why it matters
- Unfair dismissal time limits differ between the two systems.
- State system employees are covered by WA State Awards, not national Modern Awards.
- Western Australia sets its own State Minimum Wage through the WA Industrial Relations Commission, separate from the national minimum wage. Check the current rate with Wageline before relying on a figure.
- Claims go to different bodies: the WA Industrial Relations Commission, or the Fair Work Commission.
If you are unsure which system applies, Wageline (part of the Department of Energy, Mines, Industry Regulation and Safety) is the practical first check, and our employment page explains how we can help.
Sources
- Private Sector Labour Relations — WA's state industrial relations system
- Which system of employment law applies
General information only, current at 26 July 2026. It is not legal advice and does not take account of your circumstances.