Adverse action claims just got harder to fight

Adverse action claims under the Fair Work Act are becoming a tool used more frequently by employees and former employees to press claims against employers.

A recent decision of the Federal Court compounds the effects that is likely to have on employers’ abilities to defend those claims. A majority of the Court found that the Fair Work Act makes it more difficult for employers to defend claims of this kind.

Fair Work Australia reported in its quarterly statistical reports for September and December 2010 that the number of adverse action claims under the Fair Work Act is on the rise. The number of claims in each of those quarters were 434 and 464 respectively. That compares to a total number of claims in the year ending June 2010 of nearly 1200.

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