What Is the Fair Work Act?
The Fair Work Act 2009 is Australia’s central piece of workplace legislation. It sets out the rules and responsibilities for employers and employees across the national workplace relations system. This law governs employment conditions, dispute resolution, enterprise agreements, termination, and much more.
Introduced on 1 July 2009, the Act replaced the previous WorkChoices system and established a more balanced and consistent national framework for industrial relations, particularly for private-sector employers.
Fair Work Act 2009 – Federal Register of Legislation
Key Objectives of the Fair Work Act
The Fair Work Act aims to:
- Provide a safety net of fair and enforceable minimum employment terms
- Promote flexible working arrangements and fair bargaining
- Ensure fair and effective dispute resolution
- Protect against unlawful workplace discrimination and unfair treatment
- Encourage enterprise-level agreements through good faith bargaining
- Support economic prosperity through balanced workplace rights and responsibilities
What Does the Fair Work Act Cover?
The Act is broad-reaching and applies to most Australian employees and employers. Key areas include:
- National Employment Standards (NES): 11 minimum entitlements (e.g. annual leave, personal leave, public holidays, notice of termination)
- Modern Awards: Industry-specific pay and condition frameworks
- Enterprise Agreements: Rules for negotiating and approving EBAs
- Unfair Dismissal Protections
- General Protections: Safeguarding workplace rights and freedom of association
- Minimum Wage Setting
- Transfer of Business Rules
- Industrial Action and Protected Action Ballots
- Fair Work Commission Powers and Dispute Resolution
Who Enforces the Fair Work Act?
The Act is enforced by two main bodies:
- Fair Work Commission (FWC) – Australia’s national workplace relations tribunal. It approves agreements, manages disputes, and sets award conditions.
- Fair Work Ombudsman (FWO) – Investigates complaints, provides education and advice, and takes legal action where breaches occur.
Who Is Covered by the Fair Work Act?
The Fair Work Act applies to:
- All national system employers and employees, including most private businesses across Australia
- Full-time, part-time, and casual employees
- Apprentices and trainees
- Some not-for-profits and incorporated associations
It generally does not apply to:
- State public sector employees (in some states)
- Local government workers (depending on the state)
- Sole traders or independent contractors (except under sham contracting laws)
Implications for Employers
Understanding and complying with the Fair Work Act is critical for any Australian business. Non-compliance can result in:
- Fines (up to $18,780 for individuals and $93,900 for companies per breach, and more for serious contraventions)
- Legal action from employees, unions, or the FWO
- Back payments and reputational damage
Microkeeper helps you stay compliant by automating many of the obligations set out in the Act, such as minimum wages, record-keeping, rostering, and employee entitlements.
See how Microkeeper simplifies compliance
Recent and Upcoming Changes to the Fair Work Act
The Act is regularly amended to reflect changing workplace trends. Recent and proposed changes include:
- Pay secrecy clause bans (2023)
- Right to request flexible work extended (2023)
- Criminalising intentional wage theft from January 2025
- Paid parental leave superannuation guarantee contribution expected to be introduced from 1 July 2025
Stay updated with Fair Work legislation changes
FAQs About the Fair Work Act
Is the Fair Work Act the same as a modern award?
No. The Act provides the legal framework; modern awards set specific pay and conditions within that framework.
Can a business opt out of the Fair Work Act?
No. All national system employers must comply, regardless of size or industry.
Does the Fair Work Act apply to casual workers?
Yes. Casual employees have rights under the NES, including access to casual conversion and protection from unfair dismissal after regular employment.
Where can I get help with interpreting the Fair Work Act?
You can contact the Fair Work Ombudsman or seek advice from a qualified employment law professional. Microkeeper also offers automation tools to help you remain compliant.
Final Thoughts
The Fair Work Act is the foundation of workplace relations in Australia. For employers, it’s not just a legal obligation, it’s a roadmap to fair, transparent, and sustainable employment practices. By aligning your processes with the Act and using technology like Microkeeper to manage compliance, you can reduce risk and build a stronger, more resilient workforce.
Disclaimer: This content is general in nature and does not constitute legal advice. For specific guidance, consult the Fair Work Ombudsman or a qualified employment law professional.
