Outcome 6

Shape and influence industrial relations systems in Western Australia

Key effectiveness indicator O6.1: The extent to which employers comply with the requirements of Labour Relations laws

What we measure

This measure relates to the department’s effectiveness in influencing the extent to which employers comply with the requirements of State industrial laws. This is assessed in terms of the degree to which workplaces meet set criteria for labour relations priority areas. The five key effectiveness measures (KEMs) assessed are: payment of appropriate ordinary time rates of pay; providing employees with annual leave and sick leave entitlements; recording start and finishing times; recording total hours worked; and recording employment under correct status.

Some employers have multiple complaints brought against them during the reporting period and therefore have several investigations undertaken. Hence the difference between the reported number of formal investigations and the number of employers investigated.

How we measure

Industrial inspectors assess employer time and wage records against all or part of the five KEMs, resulting in a total number of elements being reported. The total number of elements inspected is divided by the number of compliant elements to determine the overall percent of compliance.

Our Performance

During 2017–18 the department reviewed 50 employers’ time and wage records during 53 formal investigations against all or part of the five key elements during the formal investigation phase.

In 2017–18, a total of 173 elements were assessed, with 97 (56 per cent) being found to be compliant. This is four per cent higher than 2016–17 and nine per cent lower than the target.

Data for this measure has been based on employers who have had complaints made against them and are therefore more likely to have breached industrial laws, hence the relatively low compliance rates compared with other areas of the business.

Table 28: Key effectiveness indicator O6.1: The extent to which employers comply with the requirements of labour relations laws

2017–18 Target Actual Target +- Status
Overall results 65% 56% -9%
Comparison with previous year

Results in detail

  • Compliance with employment under correct status was 79%.
  • Compliance with keeping of total hours worked per day was 66%.
  • Compliance with keeping of start and finish times was 39%.
  • Compliance with payment of ordinary time rates of pay was 41%.
  • Compliance with provision of annual leave and sick leave was 48%.