Small Claims Procedure Review Released

Senator the Hon Murray Watt
Minister for Employment and Workplace Relations

The Albanese Government is continuing to ensure workers are getting paid what they are entitled to with the completion of the Review of the Fair Work Act Small Claims Procedure.

The review examines ways in which the Fair Work Act's small claims procedure can be made more accessible and effective for workers seeking to recover unpaid entitlements.

The small claims procedure is a legal option for employees to take action when a dispute cannot be resolved at the workplace level. It aims to settle disputes quickly and fairly, with low costs for parties involved.

The review was a recommendation of the Migrant Workers' Taskforce and was undertaken by the Department of Employment and Workplace Relations.

Work is already underway on several of the review's recommendations, including measures to enhance safeguards for vulnerable workers.

Minister for Employment and Workplace Relations Senator Murray Watt said the completion of the review is an important step towards delivering a fairer industrial relations system for all workers, including 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," Minister Watt said.

"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 review complements the Government's Secure Jobs, Better Pay amendment to the small claims procedure, which commenced on 1 July 2023.

These reforms increased the amount recoverable through the small claims procedure from $20,000 to $100,000 and confirmed that the courts can award filing fees as costs to successful applicants.

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.

This review builds on the work the Albanese Labor Government has already done to get wages moving for working people and making sure people are getting paid what they are owed.

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