The Fund came into existence in June 1989. It was established by the creation of a Trust, with the sole purpose for its existence being to accept employee redundancy entitlements.

When the Trust was established it had six sponsors, three from the Union Movement and three from Employer Organisations.

Up until 2004 this was the vehicle into which employers paid contributions and out of which workers claimed their redundancy entitlements. With the introduction of new laws imposing Fringe Benefit Tax on redundancy contributions and the requirement that redundancy funds require registration with the Australian Taxation Office, a new Fund had to be established so the WACIR (no2) Fund came into existence.

The creation of the No. 2 Fund does not in any way hinder or restrict unemployed workers from claiming their full entitlements.