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The Albanese Government will establish a new federal Fair Work Court to handle workplace relations disputes, saying the current system is too slow, too costly and too complex for the workers and small businesses that use it.

The court would operate as a specialist forum alongside the existing Fair Work Commission, staffed by judges with workplace relations expertise.

The Government says some workers and small businesses are waiting more than two years for a resolution to disputes that should be simple, and that legal costs shouldn’t exceed the value of the claim being pursued.

Prime Minister Anthony Albanese said underpaid workers should not face years of delay to recover what they were owed.

“Australians who have been underpaid hundreds, even thousands, of dollars shouldn’t have to wait years for justice, or be told their case will cost more than their claim,” Albanese said.

The proposal would revive a specialist industrial jurisdiction that has not existed at the federal level since the Howard Government abolished the previous industrial relations court in 1997.

Employment and Workplace Relations Minister Amanda Rishworth said specialist judges would ensure workplace matters were heard by people with the appropriate expertise.

“We want to get this right, which is why consultation will be central to shaping the design of the proposed court,” Rishworth said.

Attorney General Michelle Rowland said the court would create a streamlined dispute resolution pathway and make the legal system simpler for workers and businesses to navigate.

Key details remain unresolved. The Government will consult this year on the court’s design, including how it would work with the Fair Work Commission, with workers, employers and legal experts invited to give feedback before a final design is settled.

Further details about the consultation process are expected soon.