A new specialist court for workplace disputes is coming. Peninsula’s Gazelle Kalk explains what small business needs from it.
The federal government has confirmed it will create a new Fair Work Court, promising simpler, fairer and faster justice for both workers and employers navigating workplace disputes.
Announcing the plan, Prime Minister Anthony Albanese pointed to how long people are currently left waiting. “Australians who have been underpaid hundreds, even thousands, of dollars shouldn’t have to wait years for justice, or be told their case will cost more than their claim,” he said. “That’s why Labor will fix it, with the Fair Work Court to resolve disputes faster and at lower cost, benefiting employees and employers alike.”
Why the system needed fixing
The government says the current court system is costly, complex and too slow for modern workplaces, with some workers and small businesses spending more than two years fighting for a resolution that should be straightforward. The new Fair Work Court will operate as a specialist forum, staffed by judges with workplace relations expertise, designed to work alongside the existing Fair Work Commission rather than replace it.
Minister for Employment and Workplace Relations Amanda Rishworth said the specialisation was central to the design. “A Fair Work Court will make a significant difference to help workers receive the entitlements and pay they worked hard for,” she said. “Specialist judges with workplace relations expertise would ensure workplace matters are considered by people with appropriate expertise.”
Attorney-General Michelle Rowland framed the reform as part of a broader access to justice push. “The new Fair Work Court will create a streamlined dispute resolution pathway, drawing on the expertise of specialist judges to make it easier and simpler for workers and businesses to navigate the legal system,” she said.
The government will consult on the court’s design this year, with workers, employers and legal experts invited to give feedback before a final structure is settled. More detail on that consultation process is expected soon.
What business needs from it
For Gazelle Kalk, Associate Director of Content and Training at Peninsula Australia, the announcement addresses a problem she sees regularly. “For many employers, particularly small and medium-sized businesses, workplace disputes can be costly, time-consuming and difficult to navigate. With the volume of workplace claims steadily rising, businesses need quick closure on unmeritorious claims just as much as workers need fast resolution on underpayments,” Kalk said. “Speed and finality must be the court’s core metrics.”
She says the current backlog in the Federal Circuit Court, where employment claims can sit for 18 to 24 months, is untenable for small operators. “For a small business, two years of lingering litigation and contingent liability is paralysing. Delays create uncertainty for both employers and employees, while legal costs can quickly escalate.”
Kalk also sees value in the specialisation the government is proposing. “Having workplace matters heard by judges with expertise in employment and industrial relations law may lead to more consistent and informed decisions, helping employers better understand their obligations and manage workplace risks,” she said. It’s a point echoed in Dynamic Business’s coverage of this year’s Annual Wage Review, where accurate compliance, not just headline figures, was flagged as the real factor determining outcomes for workers and employers alike.
What success looks like
Kalk says the detail of how the new court connects to the Fair Work Commission will matter as much as the court itself. “Business owners will also be watching closely to see how the new court integrates with the Fair Work Commission, as a well-connected system could make workplace disputes easier to navigate and help avoid unnecessary procedural delays,” she said.
Her clearest message is about the smaller claims that make up much of what small businesses actually face. “For this court to succeed where past models stalled, it must deliver a genuinely informal small claims pathway. When an underpayment claim is under $100,000, neither party should have to spend $30,000 in legal fees waiting two years for an outcome,” she said. “Streamlining this transition from FWC conciliation directly to a specialised bench will be the true test of this reform.”
Kalk also points out that the reform doesn’t remove the need for good compliance in the first place. “This announcement is a timely reminder that workplace compliance remains critical,” she said. “Employers should ensure they have robust systems in place for pay, entitlements and workplace policies, as disputes are always easier and less costly to prevent than they are to resolve.”
Whether the Fair Work Court delivers what Kalk and the government are both promising will come down to the consultation process now underway, and whether the final design actually prioritises the fast, low-cost pathway that small claims need most.
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