EXPLANATORY STATEMENT
Issued by authority of the Minister for Employment and Workplace Relations
Fair Work Act 2009
Section 14
Fair Work (State Declarations — Employer Not To Be National System Employer) Endorsement (No. 1) 2026
The Fair Work (State Declarations – Employer Not To Be National System Employer) Endorsement (No. 1) 2026 (the endorsement) is made under paragraph 14(4)(a) of the Fair Work Act 2009 (Fair Work Act), and endorses a declaration made under subsection 28(5) of the Northern Parklands Act 2025 (SA) that the Northern Parklands Trust (the declared employer) is not a national system employer. The endorsement will commence on the day after it is registered on the Federal Register of Legislation.
The Fair Work Act sets out the workplace relations framework for national system employers and national system employees.
Under subsection 14(1) of the Fair Work Act a national system employer means any of the following in its capacity as an employer of an individual:
- a constitutional corporation;
- the Commonwealth or a Commonwealth authority;
- a person who employs a flight crew officer, maritime employee or waterside worker in connection with constitutional trade or commerce;
- a body corporate incorporated in a Territory; or
- a person who carries on an activity in a Territory and employs a person in connection with the activity.
A national system employee is an individual employed by a national system employer (section 13 of the Fair Work Act).
Under subsection 14(2) of the Fair Work Act a particular employer is not a national system employer if it is declared as such by or under a law of a State or Territory and a written endorsement by the Minister administering the Fair Work Act is in force in relation to the employer. This recognises that certain entities are integral to State, Territory and local government administration and the employment relationships of these entities may be appropriately regulated by the States and Territories.
A State or Territory declaration may only be made in respect of an employer that is:
- a body established for a public purpose by or under a law of a State or Territory, by the Governor of a State, by the Administrator of a Territory or by a Minister of a State or Territory; or
- a body established for a local government purpose by or under a law of a State or Territory or an entity that is a wholly owned subsidiary of or controlled by such a body.
Under subsection 14(6) of the Fair Work Act, unless the employer is a local government employer (or an entity that is wholly owned or controlled by such an employer), a State or Territory declaration cannot be made in relation to an employer that:
- generates, supplies or distributes electricity;
- supplies or distributes gas;
- provides services for the supply, distribution or release of water; or
- operates a rail service or a port.
A State or Territory declaration cannot be made in relation to an employer that is an Australian university within the meaning of the Higher Education Support Act 2003 established under a law of a State or Territory (subsection 14(7) of the Fair Work Act).
The Northern Parklands Trust is a statutory trust and body corporate established under the Northern Parklands Act 2025 (SA). It was established for a public purpose, namely to be responsible for the care, control and management of the area of land established as the Northern Parklands in South Australia. Under the Northern Parklands Trust Act 2025 (SA), its functions include administering and developing the Northern Parklands in accordance with long-term strategic and annual business plans as a sporting, cultural and recreational complex of State-wide significance and as a tourist attraction and resort.
The effect of the endorsement is that the declared employer will not generally be subject to the Fair Work Act and will instead be subject to the workplace relations arrangements under South Australian laws. The endorsement has the effect that the declared employer’s employees are not generally subject to the Fair Work Act, because only employees of national system employers can be national system employees. However, some parts of the Fair Work Act, including Parts 6-3 and 6-4 (which relate to unlawful termination of employment, notice of termination, parental leave and paid family and domestic violence leave), apply to all employers and employees, and will continue to apply.
The endorsement is a legislative instrument for the purposes of the Legislation Act 2003 (Legislation Act) but is not subject to disallowance or sunsetting under that Act (subsection 14(5) of the Fair Work Act and item 27 in the table in s 12 of the Legislation (Exemptions and Other Matters) Regulation 2015 (2015 Regulation)). The Explanatory Memorandum to the Fair Work Amendment (State Referrals and Other Measures) Bill 2009 explains that the instrument is not subject to disallowance and sunsetting to ensure certainty of rights and entitlements for the employers and employees that will be subject to exclusion.
The Explanatory Statement to the 2015 Regulation similarly outlines the objective behind the exemption of instruments made under subsection 14(4) of the Fair Work Act from sunsetting, including that it ‘is designed to ensure certainty for the employment arrangements that apply to the relevant State or Territory employers and employees’ and that such instruments are ‘enduring and not appropriate for sunsetting’.
Overview
The Fair Work (State Declarations – Employer Not To Be National System Employer) Endorsement (No. 1) 2026 was enacted to endorse a declaration that the Northern Parklands Trust in South Australia is not considered a national system employer under the Fair Work Act 2009. This endorsement ensures that the Trust, established for public purposes to manage the Northern Parklands, will be governed by South Australian workplace relations laws rather than the federal Fair Work Act. This approach recognises the integral role of certain entities within State and Territory government administration and aims to appropriately regulate their employment relationships under state laws. The endorsement is made under the authority of the Minister for Employment and Workplace Relations and is intended to provide certainty for the employment arrangements that apply to the Trust and its employees.
The endorsement signifies that the Trust, and its employees, will not generally be subject to the Fair Work Act, which governs national system employers and employees. However, certain provisions of the Fair Work Act, such as those relating to unlawful termination of employment, notice of termination, parental leave, and paid family and domestic violence leave, will continue to apply to the Trust and its employees. This endorsement ensures that the Trust’s employees are protected under these specific federal provisions, while the broader employment arrangements are managed under state legislation.
Scope and Application
The Fair Work (State Declarations – Employer Not To Be National System Employer) Endorsement (No. 1) 2026 applies to the Northern Parklands Trust, a statutory trust established under the Northern Parklands Act 2025 in South Australia. This endorsement, made under the Fair Work Act 2009, recognises that the Trust is not a national system employer, thereby exempting it from the Fair Work Act's regulations. This exclusion recognises that the Trust is integral to the state's public administration and its employment relationships are better regulated under South Australian laws. The endorsement ensures that the Trust's employees are not subject to the Fair Work Act, except for specific provisions such as those concerning unlawful termination of employment, notice of termination, parental leave, and paid family and domestic violence leave, which apply universally. This legislative instrument is not subject to disallowance or sunsetting, ensuring ongoing certainty for the Trust's employment arrangements.
Key Provisions
The main operative sections of this endorsement are subsections 14(2), 14(4)(a), and 14(6) of the Fair Work Act 2009, which allow for the exclusion of certain employers from the national system. Section 14(2) of the Act provides that a particular employer is not a national system employer if it is declared as such by or under a law of a State or Territory and a written endorsement by the Minister administering the Fair Work Act is in force in relation to the employer. This endorsement under section 14(4)(a) of the Act recognises that certain entities are integral to State, Territory and local government administration and their employment relationships may be appropriately regulated by the States and Territories. Additionally, section 14(6) of the Fair Work Act outlines the criteria that must be met for an employer to be excluded from the national system. The endorsement ensures that the Northern Parklands Trust, as a declared employer, will not be subject to the Fair Work Act and will instead be governed by South Australian workplace relations laws. This exclusion applies to both the employer and its employees, except for certain provisions of the Fair Work Act that apply to all employers and employees, such as those related to unlawful termination of employment and leave entitlements.
The endorsement imposes obligations and requirements on the Northern Parklands Trust and its employees. Firstly, the Trust must adhere to the workplace relations arrangements under South Australian laws, as it is no longer subject to the Fair Work Act. This means that any employment-related matters, such as disputes or grievances, will be resolved according to the laws of South Australia rather than the national system. Additionally, the Trust must ensure that its employees are aware of the change in governing legislation and that they understand the implications for their employment rights and obligations. The endorsement also requires the Trust to comply with any relevant South Australian workplace relations laws and regulations that apply to its operations and employees.
Breaches of the Fair Work Act, including the endorsement, can result in civil and criminal penalties. The maximum penalties for contravening the Act can vary depending on the specific provision breached. For example, section 546 of the Fair Work Act imposes a maximum penalty of 120 penalty units ($22,260) for an individual and 600 penalty units ($111,300) for a corporation for offences related to contraventions of the Act. Additionally, section 547 of the Act imposes a maximum penalty of 540 penalty units ($99,180) for an individual and 2,700 penalty units ($495,900) for a corporation for offences related to serious contraventions of the Act. It is important for the Northern Parklands Trust and its employees to be aware of their rights and obligations under the endorsement and to ensure compliance with relevant South Australian workplace relations laws to avoid any potential penalties or consequences.