The Fair Work Commission is responding to a steep rise in general protections claims, which are workplace dismissal cases with no required service period and no limit on compensation. The increase has been fuelled by the use of AI tools and a rise in paid agents assisting claimants. Nearly 40% of settlements now exceed $10,000, a significant jump from the long-term average of 25%. This growing caseload is placing pressure on the commission and diverting resources from core areas such as enterprise bargaining and pay equity.
Unlawful dismissal claims are now the fastest-growing category before the commission. These involve allegations that employers acted for prohibited reasons, such as punishing employees for raising complaints. Last year, these claims rose 27% above the five-year average. From July to September, the trend accelerated further, with 2,120 claims lodged, representing a 57% rise against the average for that period over the previous three years.
In response, the Fair Work Commission has introduced a series of procedural changes to tighten the process. The previous simplified claim forms have been replaced with more detailed applications, and there is now early screening of paid agents who represent claimants. The commission is also enforcing stricter timelines, aiming to reject late applications more efficiently. These reforms are intended to focus resources on more complex claims while discouraging weaker or opportunistic applications.
Much of the rise in claims comes from individuals not eligible for unfair dismissal protections. Over half of all claimants had not met the required six to twelve months of employment, suggesting the system is being used in ways it was not intended. Both unions and employer groups support reform, despite their usual differences. Some employer bodies are advocating for stronger measures, including caps on compensation and the removal of the reverse burden of proof that currently benefits employees.
A growing concern is the influence of paid agents, who are not lawyers but often represent workers in these claims. Just eight agents were responsible for 25% of represented claims over a yearlong period. These agents are unregulated at the federal level. As a result, new commission rules now require transparency regarding fees and allow for the approval or disqualification of agents in proceedings.
The second stage of the commission’s reforms includes an emphasis on faster mediations with a focus on settlements. This will be trialled before being implemented more broadly later in the year. A third stage is planned to examine other areas, including general unfair dismissal and non-dismissal protection claims, both of which have also seen marked increases.
