In any country, corporate practice on human resource management (HRM) and employment relations (ER) is constrained and shaped by the legislative framework. In New Zealand and Australia, particularly the latter, this framework has been especially important. In this chapter, we look at how and why this has occurred. We commence by considering the initially similar, then subsequently divergent, trend in the institutional frameworks in thl' two countril's, showing that both countries experienced radical changes in the ER framework, but that New Zealand achieved stability earlier and possibly more sustainably. In order to understand why this has happened, we look at the politics of ER, finding specific historical factors relating to the award systems in both countries that hl'lp explain political parties' focus on ER. We also see how ER has played a big role in recent elections in Australia, where ER remains highly regulated. In both countries, ER regulation has major implications for work, but the implications are greater in Australia where state regulation is more extensive and complex.