Our lawyer John Dasey and I work with numerous organisations on their HR Legal and HR Team performance. Lately, we’ve noticed something quite concerning.
An uptick in General Protections claims!
And now the evidence is out to confirm this – 70% higher!
Why General Protections?
Unlike unfair dismissal where in most cases you have to have completed a minimum period (often called probation, usually six months) and earn less than $183,100 in annual salary a general protection claim is a lot easier to lodge.
65% of General Protections claims don’t meet the above criteria and 4 out of 5 don’t proceed to Federal Court.
It has become a burden on employers with a revers onus of proof, it’s a mental and emotional toll, and almost always ends in a settlement payment.
This makes it easy for employees to pursue and pay for lawyers. Multiple employer representatives cited concerns about “go away money” settlements for meritless claims.
It has resulted in employers being fearful of managing employee conduct or performance, as even fair terminations are open to litigation.
Fair Work Commission President Justice Adam Hatcher theorised that some paid agents have developed a business model treating general protection claims as a substitute for unfair dismissal claims. This matters because general protections laws have significant advantages: no minimum employment period, uncapped damages, and reverse burden of proof.
Australia’s Fair Work Commission is experiencing an unprecedented surge in workplace disputes that threatens to overwhelm the system.
Total applications lodged with the commission in 2024-25 jumped to a record 44,075 claims – nearly 50 per cent higher than 2020-21 and 24 per cent above the five-year average. If trends continue, the commission could face 54,000 applications by next July, marking the third consecutive record high.
What’s Driving the Increase
The most dramatic growth is in general protections claims, where dismissal-related claims were 27 per cent above their five-year average, whilst non-dismissal claims soared 59 per cent above average.
Recent quarterly data showed even more alarming trends: from July to September, general protections dismissal claims were 70 per cent higher than the three-year post-COVID average, unfair dismissal claims were 45 per cent higher, and non-dismissal general protections claims doubled with a 142 per cent increase.
Pro-Employee Bias?
The Albanese Labor government has faced sharp criticism from employer groups for appointing Fair Work Commission (FWC) members with strong union and plaintiff lawyer backgrounds, allegedly creating a pro-employee bias that exacerbates the surge in dismissal claims. Since 2023, Labor has made over 25 such appointments, shifting the bench to 31 Labor picks versus 26 from the Coalition era
It’s worth noting that Justice Adam Hatcher, who now leads the commission and expressed concern about the unsustainable surge, was actually appointed by Labor in 2022, suggesting the crisis transcends simple partisan divisions about appointee backgrounds.
If you need HR legal advice reach out to john@marvinhr.com
