Two systems of employment law operate for the private sector in Western Australia, the state industrial relations system and the national fair work system.

The state system covers the following businesses:

• Private sector businesses and their employers that operate as:
• Sole traders
• Unincorporated partnerships
• Unincorporated trust arrangements, where none of the trustees or other entities in the trust arrangement are Pty Ltd entities.

To work out which system covers you, please see the following link:

https://www.commerce.wa.gov.au/labour-relations/guide-who-wa-state-system

Before hiring a new employee, employers need to make sure they know their rights, responsibilities and obligations, whether they relate to pay, minimum terms and conditions, tax or superannuation. See the Department of Mines, Industry Regulation and Safety for an overview of the key employment obligations for state system employers at the following link:

https://www.wa.gov.au/organisation/private-sector-labour-relations/pay-rates-awards-and-work-arrangements-state-system-employees

When hiring a new employee, an employer should ensure that all relevant documents are given to an employee, through an induction package. From a best practice perspective, the following documents should be included:

• Job description, letter of offer, employment contract, a copy of the business’ employee handbook;
• Employee details form;
• Tax file declaration form; and
• Superannuation nomination form.

All state system employers are legally required to keep employment records that detail employment details, time worked, leave taken and pay received by employees. Employers can access record keeping templates at the following link:

https://www.wa.gov.au/government/publications/wagelines-record-keeping-templates

New employees must complete a tax file number (TFN) declaration. They may also complete a withholding declaration. Employers must lodge TFN details with the ATO, unless their employee has completed the employee commencement forms in ATO Online Services.  For further information, please visit the Australian Tax Office website:

https://www.ato.gov.au/Business/PAYG-withholding/Payments-you-need-to-withhold-from/Payments-to-employees/Tax-file-number-and-withholding-declarations/