In March 2006, the Federal Coalition Government made significant amendments to the Workplace Relations Act 1996 (Cth), commonly referred to as WorkChoices. WorkChoices redefined the federal and state industrial relations systems by bringing all incorporated employers (companies) under the federal system. Unincorporated employers (sole traders and partnerships) remain in the state system, subject to some transitional arrangements.
There are now different wages for employees of an incorporated employer and employees of an unincorporated employer. In order to pay the correct wages and avoid penalties, an employer must determine in which category they operate.
