Government completes review on small claims procedure

The federal government has completed its review of the Fair Work Act small claims procedure, pledging that it will deliver a fairer industrial relations system.

Minister for Employment and Workplace Relations, Senator Murray Watt recently announced that the Review of the Fair Work Act Small Claims Procedure has been completed. According to the government, the review examined the ways in which small claims procedures for workers can be made both more accessible and effective.

The review came as a recommendation of the Migrant Workers’ Taskforce, which was undertaken by the Department of Employment and Workplace Relations.

By definition, the small claims procedure is a legal option that employees can take when a dispute cannot be resolved at the workplace level; this aims to settle disputes quickly and fairly, with low costs for both parties involved.

Various recommendations were mentioned in the review, recommendations that Watt claimed would be considered by the Albanese government. He explained that the review is an important step towards delivering a fairer industrial relations system for all workers, especially migrant workers.

“The completion of this review marks the delivery of another recommendation of the Migrant Workers’ Taskforce. The Albanese government is committed to making the small claims procedure an effective avenue for all workers who need it,” said Watt.

“Since 2022, the government has progressed significant measures to strengthen protections for workers, including migrant workers, who may face additional challenges in accessing the justice system to recover their unpaid entitlements.”

“The government is considering all the review’s recommendations.”

The government claims the review is in line with the government’s Secure Jobs, Better Pay, which commenced on 1 July 2023.

According to the government, these reforms increased the amount recoverable through the small claims procedure from just $20,000 right through to $100,000. It also confirmed that the courts can award the filing fees back to successful applicants as costs.

“In line with the review’s recommendations, the Department of Employment and Workplace Relations will consider whether any additional changes are needed once further data on the effects of the Secure Jobs, Better Pay reforms to the small claims procedure becomes available,” said the government statement.