New Fair Work Court

This morning, the Prime Minister has announced plans to establish a new federal Fair Work Court, aimed at delivering a simpler, faster and more accessible pathway for resolving workplace disputes, including underpayment claims.

The introduction of the Fair Work Court will be a specialised forum consisting of Judges, designed to work in conjunction with the Fair Work Commission. This will be a significant reform to Australia’s workplace relations and dispute resolution system, representing a return to the former Industrial Relations Court abolished in 1997.

The Government has indicated it will undertake consultation during 2026 on:

• the scope of the Court’s jurisdiction;
• how matters will transition between the Fair Work Commission and the Court;
• the procedural rules governing claims;
• measures to improve access to justice; and
• how the Court can better support workers, employers and small businesses in resolving disputes.

Employers should begin considering how the proposed reforms will impact the progression and resolution of disputes. This may include:

• more streamlined progression of disputes from conciliation to litigation;
• clearer pathways for enforcement of workplace rights and obligations;
• shorter timeframes for resolving disputes; and
• greater active case management and shorter timeframes accelerating claim progress.

The commencement date of the Fair Work Court is yet to be announced. However, the proposal reinforces the Government’s continuing focus on improving access to workplace justice and strengthening the enforcement of workplace rights. Employers should expect further developments over the coming months as consultation progresses and draft reform proposals emerge.