The primary legislation relating to contracts of employment in South Australia is the Fair Work Act 1994 (SA), which creates the Industrial Relations Court of South Australia and the Industrial Relations Commission of South Australia. The Industrial Relations Commission of SA has the power to hear and determine any industrial matter and by making awards it determines standards for particular occupations, industries or enterprises.

The Industrial Relations Commission of SA can make an award for all employers and employees in an industry. This is sometimes referred to as a common rule award. It does not matter that the employee is not a member of the union that lodged the claim, or that the employer was not represented in the hearing or was not a member of an organisation that appeared at the hearing - if the Industrial Relations Commission of SA determines that the award will apply to all the industry, then it does so for all employers and employees in that industry not covered by Federal law. The Industrial relations Commission of South Australia also has the power to make an award of general application on matters such as the minimum rate of pay, and this applies to all employees covered by the Fair Work Act 1994 (SA).