The Australian Chamber of Commerce and Industry (ACCI) has warned that the Albanese government's proposed Fair Work Court could increase costs and complexity for employers. The warning comes despite the government's pledge to simplify and speed up workplace dispute resolution.
As per media reports, the federal government announced last week that it will establish a Fair Work Court. It said the new body will deliver simpler, fairer and faster justice for workers and businesses.
According to the government, the current system is costly and difficult to navigate. Some workplace disputes take more than two years to resolve. In some cases, legal costs exceed the value of the original claim.
Concerns over complexity
ACCI chief executive Andrew McKellar said, "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.”
“Industrial relations cases should remain within the existing Federal Court system. A specialist industrial court,” he said.
Risks separating workplace law from broader commercial, administrative, constitutional and statutory legal principles.
"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.
He also noted that the Fair Work Court was not an election commitment. In his view, the proposal reflects the growing complexity of Australia's workplace relations laws.
"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
The government said it will consult employers, workers and the legal profession before finalising the court's design.
Gazelle Kalk, associate director of content and training at Peninsula Australia, took a more measured view. She said the proposal could address one of the biggest frustrations facing employers. However, its success would depend on how the new system is implemented.
"One of the biggest frustrations for businesses is the length of time and expense involved in resolving workplace disputes," Kalk said.
The consultation process will shape the final design of the Fair Work Court. Employers will be watching closely to see whether it delivers faster dispute resolution without increasing legal costs or adding administrative complexity.