What Is Industrial Relations?
Industrial relations refers to the dynamic relationship between employers, employees, and the government in the regulation and negotiation of workplace conditions, rights, and responsibilities. It encompasses collective bargaining, dispute resolution, employee representation (e.g. unions), and employment legislation.
In Australia, industrial relations is shaped by a complex framework of laws, awards, enterprise agreements, and national employment standards, all designed to create a fair and productive working environment for both employers and employees.
Fair Work Ombudsman – Industrial Action and Bargaining
Key Elements of Industrial Relations in Australia
- Fair Work System
Australia's industrial relations framework is primarily governed by the Fair Work Act 2009, administered by:- The Fair Work Commission (FWC) – the national workplace tribunal
- The Fair Work Ombudsman (FWO) – enforcement and education
- The Australian Building and Construction Commission (ABCC) – for building industry-specific regulation
- National Employment Standards (NES)
A set of 11 minimum workplace entitlements that apply to all employees in the national workplace relations system, including:- Maximum weekly hours
- Flexible working arrangements
- Annual and personal leave
- Public holidays and notice of termination
- Modern Awards and Enterprise Agreements
- Modern Awards set minimum pay rates and employment conditions for specific industries or occupations
- Enterprise Bargaining Agreements (EBAs) are negotiated between an employer and employees (often with union involvement) and must be approved by the FWC
Learn More About Modern Awards
Goals of Industrial Relations
The primary goals of effective industrial relations include:
- Ensuring fair wages and safe working conditions
- Encouraging collaborative communication between employees and employers
- Preventing and resolving workplace disputes
- Promoting economic growth and productivity
- Balancing the rights and obligations of all workplace participants
Industrial Relations Stakeholders
- Employees – Seeking fair treatment, job security, and decent conditions
- Employers – Aiming for productivity, compliance, and a stable workforce
- Trade Unions – Representing employee interests, especially in collective bargaining
- Employer Associations – Representing business interests in policy and negotiations
- Government Bodies – Legislating and regulating employment law and standards
Industrial Disputes and Resolutions
Disputes can arise over a range of issues, such as:
- Wages and entitlements
- Disciplinary action
- Unfair dismissal
- Discrimination or bullying
- Safety concerns
Disputes may be resolved through:
- Enterprise bargaining and negotiation
- Mediation or conciliation via the Fair Work Commission
- Industrial action, such as strikes or employer lockouts
- Arbitration, where a binding decision is imposed by an authority
FWC – Dealing with Disputes
Types of Industrial Action
Industrial action refers to steps taken by employees or employers during bargaining or disputes. This includes:
- Strikes – workers refusing to work
- Work bans – refusal to perform certain duties
- Lockouts – employers refusing to allow workers to work
These actions are only legal when undertaken during protected bargaining periods and follow procedures outlined in the Fair Work Act 2009.
Recent Trends in Industrial Relations
- Flexible Work Arrangements – Rising demand for hybrid and remote work has prompted new negotiation points between employers and employees.
- Pay Transparency and Equity – Industrial relations now increasingly focus on equal pay, especially in female-dominated industries.
- Increased Union Involvement – Especially in sectors like health, education, logistics, and construction.
- Legislative Updates – Reforms such as changes to the Secure Jobs, Better Pay Act have adjusted bargaining rules, gender equality measures, and protections against sexual harassment.
Secure Jobs, Better Pay Bill Summary
How Microkeeper Supports Industrial Relations Compliance
While industrial relations can be complex, technology can make compliance easier. Microkeeper’s all-in-one HR and payroll software supports:
- Award interpretation and compliance: Automate pay rates, penalties, and entitlements based on the relevant Modern Award or EBA
- Roster transparency and fairness: Give staff visibility and input on scheduling
- Digital leave management: Simplify leave tracking and approval workflows
- Employee records: Securely store contracts, policies, and communications
- Accurate payslips and tax reporting: Stay compliant with STP, SuperStream, and Fair Work guidelines
See How Microkeeper Simplifies HR Compliance
FAQs About Industrial Relations
Is industrial relations the same as human resources (HR)?
Not quite. HR is more focused on people management, recruitment, and culture. Industrial relations deals with the legal and structural relationships between employers and employees.
Can small businesses be affected by industrial relations laws?
Yes, even small businesses must comply with minimum standards, NES, and awards.
Do all employees fall under the Fair Work Act?
Most Australian employees are covered, but there are exceptions for certain state public sector workers.
Final Thoughts
Industrial relations is at the heart of every Australian workplace. It ensures that the rights of employees are protected while giving employers the structure they need to operate fairly and efficiently. Understanding your responsibilities and using tools like Microkeeper can help businesses remain compliant and maintain positive relationships with their workforce.
Disclaimer: This glossary entry is for general information only and does not constitute legal advice. Please consult Fair Work or a legal professional for specific guidance.