In Australian workplace relations, two government bodies play an essential role in maintaining a fair and productive environment for business owners and employees.
The Fair Work Ombudsman (FWO) and the Fair Work Commission (FWC).
While they sound similar, they are two separate government organisations with very distinct, but equally important roles.
Understanding which organisation deals with workplace disputes, compliance issues and employee entitlements can save employers significant time and frustration. External HR advice services can help businesses navigate workplace obligations and compliance requirements.
What is the Fair Work Ombudsman (FWO)?
The Fair Work Ombudsman is Australia's national workplace regulator. Its primary role is to provide information on the Fair Work Act 2009 (the Act) and modern awards, promote compliance with workplace laws and related employment legislation, the national minimum wage, and registered agreements.
Another function of the FWO is to monitor compliance across industries. It has the power to conduct an audit, respond to complaints, and investigate any case of non-compliance. This enhances the FWO’s approach to creating a fair workplace.
Workplace investigations may involve the FWO
If a dispute occurs against your business and you and your employee are unable to resolve the situation, the FWO can act as a mediator. Employers who need support during these situations can access our Fair Work mediation support for employers. They can appoint a Fair Work Inspector to investigate an alleged breach of the Act. These inspectors have the authority to enforce action and compliance with Australia’s workplace laws.
This can range from issuing a compliance notice to taking an employer to court for a breach. The FWO's focus is on educating the business owners and workers, ensuring employment rules are followed and rectifying non-compliance.
What the Fair Work Ombudsman doesn’t do
There are several types of disputes where FWO participation would not occur, including:
- Deal with unfair dismissals and unlawful terminations.
- Change legislation, minimum wages, industry awards or registered agreements.
- Investigate bullying complaints.
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What is the Fair Work Commission (FWC)?
The FWC is Australia’s national workplace relations tribunal. Its role is to act independently, helping to resolve disputes and setting the standard for Australia's workplaces. The FWC issues legally binding decisions via its tribunal process.
The FWC help with disputes relating to:
- Workplace bullying and sexual harassment.
- Discrimination.
- The right to disconnect.
- Flexible working arrangements.
- Extending unpaid parental leave.
- The terms in an award, agreement, order or guideline.
- Employment status (casuals moving to permanent employment).
- Fixed term contracts.
- Unfair contracts.
What the Fair Work Commission doesn't do
- Provide employees and employers with advice on award entitlements and/or entitlements acquired under a registered agreement.
- Enforce minimum pay and award entitlements.
Minimum wage updates fall under the FWC
An important function of the FWC, which can impact over two million employees, is to review and set the National Minimum Wage and modern award wages each year. This is the minimum pay and conditions for specific industries and occupations.
The FWC also approves enterprise agreements. These are workplace-agreements negotiated between business owners, unions and your employees.
Unsure what the Fair Work Act means for you?
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Resolving workplace disputes in Australia
For small business owners, the FWC plays a crucial role in dispute resolution. The Commission is the body that handles workplace claims. These could be for various reasons such as unfair dismissal, bullying and harassment, agreement disputes, or general protections disputes.
If an employee believes they have been unfairly dismissed and lodge a claim, the FWC is the body that facilitates a tribunal hearing. The aim is to resolve the matter between you as the business owner and your employee.
The FWC also has the power to issue orders to stop bullying or sexual harassment in the workplace.
The key distinction in their functions: the FWO is the regulator and educator, focused on compliance and providing information, while the FWC is where tribunal hearings are conducted. They also focus on resolving disputes and making decisions.
Protect your business
While the FWO and FWC websites offer a range of helpful resources, they can be confusing. It’s often difficult to find the exact information you’re looking for as it relates to your business and current circumstances. This could lead to misinterpreting information and making an unintentional, yet costly, error.
Understanding the difference between the Fair Work Ombudsman and Fair Work Commission is only one part of managing workplace obligations. Employers should also understand how workplace laws, awards and employee entitlements apply to their specific circumstances. Peninsula can help employers navigate Fair Work compliance and workplace disputes.
This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.
