Previously the Western Australian Industrial Commission, the change of title reflects the Government's policy to emphasise industrial relations rather than arbitration. The Commission has authority to enquire into any industrial matter and to make an award, order or declaration in respect of the dispute.

The 1963 Industrial Arbitration Act brought about a complete restructuring of the arbitration system in Western Australia. The repeal of Sects. 44 - 60 in the principal Act saw the abolition of the Court of Arbitration and the establishment of the Industrial Commission. The Commission consisted of a Chief Industrial Commissioner and three other Commissioners and had the power to inquire into any industrial matter or dispute within its jurisdiction and to make orders or awards in respect of these matters or disputes.

The Industrial Arbitration Act of 1912 reflected the emphasis on arbitration rather than conciliation, and the Court of Arbitration became the centre of the system rather than a court of last resort. The court continued to operate with arbitral and judicial powers and a minor conciliatory role. The Courts powers were broadened under some of the amendments to the 1912 Act.

On the 1 March 1922, the responsibility for the registration of unions passed from the Registrar of Friendly Societies to the Clerk of the Court of Arbitration.