Australian Prime Minister Anthony Albanese makes a speech during the Victorian ALP state conference in Melbourne, Australia on May 23, 2026. Asanka Ratnayake/Getty Images
The Australian Labor government has announced plans to reinstate another tier of court to deal with industrial relations matters.
In a speech at Labor’s 50th national conference in Adelaide on July 23, Prime Minister Anthony Albanese said the government would establish the Fair Work Court to handle simpler disputes between workers and employers.
These matters currently fall under the Fair Work Commission (FWC) and the Federal Court.
The move would restore a specialist industrial relations court abolished by the Howard government in 1997 amid broader workplace reforms aimed at reducing the role of unions and eliminate duplication in the court system.
The Labor government argued that the current court system is costly and complex for workers and employers to navigate, and too slow to respond to the needs of modern workplaces.
“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,” Albanese 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.”
A panel of specialist judges with expertise in workplace relations would sit on the new court, with consultation on its design to begin later this year.
Employment and Workplace Relations Minister Amanda Rishworth said it was important that the new court system “works fairly and efficiently for workers and employers.”
“Specialist judges with workplace relations expertise would ensure workplace matters are considered by people with appropriate expertise,” she said.
“We want to get this right, which is why consultation will be central to shaping the design of the proposed court.”
The announcement of the Fair Work Court comes amid a rise in disputes between workers and employers over pay and other workplace issues.
In its latest annual report (pdf), the FWC revealed that it received 44,075 lodgments in 2024-25, up 10 percent compared to the previous year.
Of those, 16,500 were unfair dismissal claims, up from 14,772 in 2024–25, an increase of 11.7 percent.
The FWC said it achieved a clearance rate of 98 percent for applications, with 81 percent of cases reaching final settlement within eight weeks.
