ACCI raises alarm over new court despite promises of faster workplace dispute resolution
The Australian Chamber of Commerce and Industry (ACCI) has raised concerns that the federal government's proposed Fair Work Court could increase costs and complexity for employers, despite the Albanese government's assurances the new body will speed up workplace dispute resolution.
The Albanese Labor Government announced last week that it will create a new Fair Work Court to provide simpler, fairer, and faster justice for working Australians.
The government cited the need for a new court, saying the current system can be costly, complex to navigate, and slow to respond to the needs of modern workplaces, with some workers and small businesses spending more than two years fighting for a resolution, sometimes on cases that cost more to run than the original claim is worth.
Concerns over cost, complexity
ACCI chief executive officer Andrew McKellar said business has yet to see the full detail of the proposal, but he warned of potential drawbacks.
"Business is concerned today's announcement will lead to higher costs and complexity, especially given there is no evidence that existing courts lack the expertise or jurisdiction required to deal with industrial relations matters," McKellar said.
The CEO pointed to several benefits of retaining industrial relations matters within the existing Federal Court system, warning that a specialist industrial court risks isolating legal doctrine from broader principles of commercial, administrative, constitutional, and statutory law.
"History has shown us that when it comes to debates about industrial relations or workplace disputation, there is a tendency for them to become a focal point for broader ideological debates," he said.
McKellar also flagged that the Fair Work Court was not a policy taken to the last election, suggesting it may reflect the increased volume and complexity of workplace legislation in recent years.
"Changes to workplace relations laws over the last few years have vastly increased complexity and uncertainty, and expanded their coverage and jurisdiction, resulting in more litigation and a greater role for courts and tribunals in resolving workplace disputes," he said.
"Business has always been concerned that this would result in a lawyer's picnic. The announcement today may be evidence that we were right."
Potential benefits for businesses
The government has said it will consult with workers, businesses, and the legal profession on the design of the court before the proposal is finalised.
Gazelle Kalk, associate director of content and training at Peninsula Australia, offered a more measured view, acknowledging the potential benefits for small and medium-sized businesses while echoing some of the same concerns about execution.
"One of the biggest frustrations for businesses is the length of time and expense involved in resolving workplace disputes," Kalk said.
"Currently, employment claims sent to the Federal Circuit Court can sit in backlogs for 18 to 24 months. For a small business, two years of lingering litigation and contingent liability is paralysing."
Kalk said a dedicated Fair Work Court could make the system more accessible by providing a clearer pathway for resolving employment matters, particularly if judges bring specialist expertise in employment and industrial relations law, potentially leading to more consistent decisions and helping employers better understand their obligations.
Small and medium-sized businesses, she added, stand to benefit most from a more streamlined process that reduces the burden of lengthy and costly litigation.
Kalk stressed, however, that how the court integrates with the Fair Work Commission would be critical to whether it delivers on that promise.
"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. Streamlining this transition from FWC conciliation directly to a specialised bench will be the true test of this reform."
