Employers are facing a sustained and significant increase in general protections (GP) claims under the Fair Work Act 2009 (Cth), particularly dismissal-related claims. The Fair Work Commission (FWC) has described this growth as “unsustainable”, with a 57% increase on the three-year average reported in the first quarter of the 2025-26 financial year. This has prompted procedural reforms in late 2025, with further changes signalled for 2026.
A key driver behind this surge is the increased use of artificial intelligence (AI) and paid agents to generate GP applications. While many of these claims ultimately lack merit, they often require employers to expend significant time and resources, creating pressure to settle matters early regardless of the strength of the claim.
Why GP claims are increasing
GP claims are attractive to employees because they:
- do not require a minimum employment period
- involve uncapped compensation
- operate under a reverse onus of proof once a prohibited reason is alleged
The FWC has also raised concerns about the growing role of paid agents in GP claims. Unlike lawyers, paid agents operate outside any regulatory or professional conduct framework and often rely on high-volume, no-win no-fee business models. This has contributed to an increase in GP claims being pursued with a focus on early settlement rather than the resolution of genuine disputes.
The increasing use of AI tools has significantly reduced the time and effort involved in commencing GP claims. While these applications may be generically framed, they still require employers to devote time and resources to responding.
2025 reforms introduced by the Fair Work Commission
In response, the FWC introduced a series of case-management reforms in late 2025 aimed at improving efficiency and strengthening early case management.
Key changes include:
- More detailed application and response requirements: These must clearly set out alleged breaches and jurisdictional objections, replacing the previous “tick-the-box” approach.
- Early determination of representation: Parties must explain their requests for legal or paid-agent representation, which will generally be determined before conciliation.
- Stricter treatment of late applications: Out-of-time applications must justify exceptional circumstances and may be dismissed without requiring an employer response.
While these reforms are welcome, they primarily address how claims are managed rather than the factors driving the increase in GP claims. Employers should expect increased scrutiny when responding to GP claims. Jurisdictional objections must be clearly articulated, and poorly prepared responses may limit an employer’s ability to rely on those objections later.
Looking ahead to 2026
Further reform is already underway. In 2026, the FWC will commence broader reviews of:
- general protections claims not involving dismissal, and
- unfair dismissal applications.
These reviews are expected to consider additional procedural changes to manage workload and address the continued rise in claims.
How we can help
GP claims require a different approach to unfair dismissal claims. Early strategy and careful handling are critical.
We regularly assist employers to:
- assess GP risk before disciplinary action or termination
- prepare strong, strategically framed responses to GP applications
- identify and run jurisdictional objections early
- manage conciliation and settlement strategy
- review internal procedures to reduce future GP risk
If you are dealing with a GP claim, or are considering action that may expose your business to one, contact the HMB team at admin@hmblaw.com.au.
