Role of the Fair Work Commission
The Fair Work Commission is an independent statutory agency that plays a central role in Australia's workplace relations system. It was established under the Fair Work Act 2009.
Tribunal functions
- Unfair dismissal decisions
- General protections disputes
- Enterprise agreement approval
- Industrial action orders
Regulatory functions
- Annual wage reviews
- Modern award variations
- Award modernisation
- Minimum conditions setting
Key functions of the FWC
The Fair Work Commission performs several critical functions in the Australian workplace relations system:
Primary functions
Annual wage review
One of the FWC's most significant functions is conducting the annual wage review. This process determines increases to:
- National minimum wage: The base rate for award-free employees
- Modern award minimum wages: All rates in modern awards
- Transitional instruments: Wages in older instruments being phased out
The review considers submissions from employer groups, unions, and government, as well as economic data, before deciding on percentage increases that typically take effect from 1 July each year.
Unfair dismissal time limits
Employees must lodge an unfair dismissal application within 21 days of their dismissal taking effect. This is a strict deadline—late applications are only accepted in exceptional circumstances. Employers should ensure termination processes are properly documented and compliant to avoid successful claims.
Types of matters handled
Employee applications
- Unfair dismissal claims
- General protections disputes
- Anti-bullying orders
- Flexible work disputes
Employer/union applications
- Enterprise agreement approval
- Protected action ballot orders
- Award variation applications
- Right of entry disputes
Common employer mistakes with FWC matters
Ignoring conciliation
Not engaging properly in FWC conciliation processes. Most matters can be resolved at conciliation, saving time and legal costs.
Poor documentation
Lacking proper records of performance management, warnings, or dismissal reasons. Documentation is crucial evidence in FWC proceedings.
Missing response deadlines
Failing to respond to FWC applications within required timeframes. Late responses can result in adverse outcomes.
Key takeaways
The Fair Work Commission is central to Australia's workplace relations system—setting minimum wages, approving agreements, and resolving disputes. Understanding its role helps employers navigate compliance and dispute resolution.
Prevention is better than litigation. Good workplace practices, proper documentation, and compliant workforce management systems reduce the risk of FWC disputes. RosterElf helps with accurate time tracking and award interpretation to support compliance.
