In brief
- In WA, sole traders, unincorporated partnerships and some trusts are in the state employment system; Pty Ltd companies are in the national Fair Work system.
- In the national system, every new employee gets the Fair Work Information Statement, plus the casual or fixed-term statement where it applies.
- Whether someone is an employee or a contractor depends on the real substance of the relationship, not just what the contract calls it.
- WA employers must hold workers’ compensation insurance for their workers, which can include some contractors.
Hiring in Western Australia
Hiring in WA has its own challenges. Large resources, construction and infrastructure projects compete for many of the same trades and professionals as smaller businesses, so good candidates can have more than one offer at once.
To compete, it helps to move quickly and communicate clearly: a realistic job description, a pay range that matches the market, a short interview process and a prompt decision. For roles that are hard to fill, it can help to approach people directly or to use a recruiter.
Before you hire, check which employment system applies to you. WA has two. The state system covers sole traders, unincorporated partnerships and trusts that don’t have a company as trustee. Pty Ltd companies, and partnerships and trusts that include one, are in the national Fair Work system. You can’t choose: it depends on how your business is set up.
What every employer must do
Whichever system applies, the basics are similar:
- Work out the award or agreement that covers the job, and the minimum pay, penalty rates and allowances it sets
- In the national system, give the Fair Work Information Statement before or as soon as possible after the employee starts, plus the Casual Employment Information Statement or Fixed Term Contract Information Statement where it applies
- Put the main terms in writing: full-time, part-time or casual, hours, pay and notice
- If the person holds a visa, check their work rights in VEVO before they start
- Ask for a tax file number declaration and the employee’s choice of super fund; if they don’t choose one, ask the ATO for their stapled fund
- Have workers’ compensation insurance in place, and set up Single Touch Payroll and Payday Super in your payroll software
Employee or contractor?
Calling someone a contractor doesn’t make them one. Since 26 August 2024, the Fair Work Act decides whether a worker is an employee by looking at the real substance, practical reality and true nature of the relationship, including how the work is done in practice, not just the written contract.
Telling a worker they’re a contractor when they’re really an employee, without a reasonable belief that they’re a contractor, is sham contracting, and it’s illegal. Some signs that point one way or the other:
| Factor | Usually an employee | Usually a contractor |
|---|---|---|
| Control | You decide how, when and where the work is done | They decide how to do the work to deliver an agreed result |
| Tools and equipment | You provide them, or pay an allowance | They supply their own |
| Delegating | They must do the work themselves | They can subcontract or send someone else |
| Risk and insurance | Your business carries the commercial risk | They carry their own business risk and insurance |
| Super | You pay the super guarantee | Super may still be due if you pay them mainly for their labour |
Onboarding and keeping good people
The first weeks set the tone. A planned start, with the tools ready, a clear explanation of the job, someone to ask, and regular check-ins over the first three months, helps a new employee settle in and lets you deal with problems early.
When your own team is stretched, a recruiter can find and screen candidates, and labour hire can supply workers for a project or a busy period. WA doesn’t have a general labour hire licensing scheme, but Queensland, Victoria, South Australia and the ACT do, so check the rules if workers will be placed interstate.
Before the first day, know which award applies, how you’ll pay super, and what you need to give the new employee in writing.
What to do next
Hiring well in WA means moving quickly for good candidates while getting the basics right: the right system and award, the right paperwork, and the right type of engagement.
Talk to Talent Connect 360 about finding candidates or labour hire. For payroll and super, My Biz Books can help.
