The Federal Labor Government recently announced plans to establish a new Fair Work Court, describing it as a way to deliver simpler, fairer and faster workplace justice. While many of the details are yet to be confirmed, and will be subject to a consultation process that’s proposed to commence later this year, it’s clear that the Government wants a specialist, more accessible pathway for resolving workplace disputes, particularly where delays and legal costs can make smaller matters difficult to pursue.
Our suggestion is that employers use the coming months to tighten up the basics, especially wage compliance and record keeping, so you’re better positioned in advance of more accessible enforcement mechanisms coming online.
What is being proposed: a new Fair Work Court
Based on the limited information released so far, it appears the Government’s intention is for the proposed Fair Work Court to be a specialist federal court staffed by judges with workplace relations expertise. The stated aim is to support a faster, simpler and more accessible pathway for resolving workplace relations disputes, and to operate in a way that works “seamlessly” with the Fair Work Commission (FWC).
The Government has pointed to the current system as being costly and slow, with some workers and small businesses spending more than two years seeking a resolution, noting that there are circumstances in which the cost of running the case exceeds the value of the claim.
What we still don’t know (and why it matters)
Open questions to be (hopefully!) answered through the consultation process include:
- Jurisdiction: Will the Court focus mainly on underpayment claims, or will it take on a broader range of workplace matters currently dealt with by existing federal courts?
- Structure: Will it be a new standalone court, or a specialist division within an existing court?
- Overlap: Will existing courts continue to hear some workplace matters in parallel, or will the new Court become the primary forum?
- Interaction with the FWC: How will matters move between FWC conciliation/mediation and court proceedings, and what will the “handover” look like in practice?
These details will determine whether the new Court delivers a genuinely streamlined pathway, or whether it adds yet another layer that employers need to navigate.
Additional workplace relations changes being discussed
Alongside the Fair Work Court proposal, further workplace relations changes were discussed at Labor’s National Conference as part of its 2026 Draft National Platform (the Platform). While these are not yet final policy, they are useful indicators of what may appear on the Government’s agenda.
1) Increased focus on AI in the workplace
The Platform indicates that the Government will give consideration to whether the Fair Work Commission has appropriate capacity and expertise to address AI issues, including the possible establishment of an AI Expert Panel within the FWC.
It also flags potential review of whether existing regulatory frameworks adequately protect workers in areas such as:
- intrusive surveillance
- privacy protections
- use of personal or biometric data (including data used to train AI systems), and
- whether anti-discrimination laws are fit for purpose in an AI-enabled workplace.
A stated policy position is that significant and consequential decisions affecting workers should be able to be reviewed and explained by a human decision-maker.
An increasing focus on AI in the workplace relations context is in our view a good thing. We’ve seen it present both significant opportunities and challenges in our recent work, so a close examination of just what’s happening and how it can best be managed is we think a useful step.
2) Long service leave (LSL) minimum standard
The Platform also suggests that the federal Government will be working with State and Territory Governments to establish a national minimum standard for long service leave as part of the National Employment Standards (NES). Because long service leave is currently regulated through a patchwork of State and Territory laws, any move toward a national minimum standard could have practical implications for employers operating across jurisdictions.
3) Consistent treatment of public holidays on weekends
The Platform also signals potential work to ensure consistent treatment of public holidays where they fall on weekends. Depending on how this is approached, it could affect payroll handling and leave practices, particularly for those employers with staff in multiple States or Territories.
Practical tips for small business employers: what you can do now
While the policy, consultative and legislative processes need to play out, there are several steps small business employers can take to reduce risk and improve readiness.
1) Do a wage compliance health check
Underpayment disputes often turn on the basics:
- correct award coverage
- correct classification levels
- correct application of penalty rates, overtime and allowances
- correct handling of annualised salary or “set salary” arrangements
If you haven’t reviewed these settings recently, now is a good time. Reach out to us if you need support.
2) Strengthen time and wage records
Good records are one of the most practical protections an employer can have. Ensure you can readily produce:
- rosters and timesheets
- start/finish times and break records
- overtime records/approvals
- leave records and accruals
3) Pressure-test your payroll process
Consider running a small internal audit:
- pick a sample of employees over a sample of time and re-check pay calculations against the applicable Award (this is particularly important if you are “absorbing” Award entitlements such as overtime, penalties and/or annual leave loading into annual salaries or above-Award rates)
- confirm superannuation, leave accruals and deductions are being handled correctly, and
- document who checks what (and when) so that errors don’t slip through.
4) If you use AI tools, set clear guardrails
If your business uses AI in recruitment, performance management, rostering, monitoring, or to support decisions relating to employment, start with a simple inventory:
- where AI is used
- what data it relies on, and
- who reviews outcomes.
A practical safeguard is to ensure that any decision that materially affects an employee (for example, hiring, discipline, termination, significant roster changes or pay decisions) is reviewed by a human who can explain the reasoning.
What to keep an eye on
The next major milestone will be the Government’s consultation process on the design of the Fair Work Court. This will shape how the Court operates, how it interacts with the Fair Work Commission, and whether it delivers a genuinely accessible pathway for resolving disputes.
If you’d like help reviewing your award coverage, pay practices, or record-keeping systems, we can help you identify and fix issues early, before they become disputes, and before the potential introduction of streamlined, more accessible claim mechanisms. Give us a call to discuss the options.
Note that this is general information only. It is not formal or legal advice. Information is current and we believe accurate at the time of publication – 05/08/2026.
