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Starting of the 1990 the majority of the workers in Australia were employed under the protective system of the labor laws. These systems were based on the legislation which both constitute and regulate the industrial tribunals that have the power to deal with the industrial disputes between the employees, employees and their institutions like trade unions. So among these powers the tribunals were fully authorized to make the awards that were developed with the rights and the conditions of the workers in the industries, workplace and other occupations. Such types of awards help to see the standards for employment for more than ninety percent of the employed people in the terms of wages, working hours, leave provisions, over time, penalty rates for strange hours, separation pay etc. they also provided limited scope regarding the employment of the certain forms of irregular labor like contractors, part time employees etc. in short we can say the Australian required adjudication system was a through going system regarding industrial regulations that are based on the fair and equal wages conditions. These fair and equal wages conditions are particularly guaranteed by the recognitions and the representation rights. So as a consequence of all these there were clear limits regarding the managerial prerogative and on the work related to free labor markets. (Marshall, 1999). The Australian labor government in their mid 1980 open up the Australian economy so as to increase the worldwide competition that led to rethinking regarding the nature of industrial relations. So in particular this system was made for the centralized award regulations with the fixed job classification structures.
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