Yet another of the recent reforms in the employment law space, small claims process changes will come into effect on 1 July 2023.
Small claims processes are often used as a tool in the recovery from employers of underpaid wages or unpaid entitlements.
The amendments to the small claims court procedures:
- increase the cap on the amount that can be awarded through small claims court proceedings from $20,000 to $100,000 (making the small claims procedure available to a greater number of workers); and
- clarify the courts’ ability to award filing fees as costs to successful small claims applications (reducing the deterrent effect of filing fees on the making of claims).
Employers should be mindful that, as a result of these changes, there will likely be an increase in these types of claims being made, making it as important as ever to ensure that wages and entitlements are being identified, calculated, accrued and paid correctly.
Employers who receive notice of a small claim having been made against them should obtain specialist workplace advice for assistance in assessing and responding to claims. Whilst often employers will be unable to use legal representation in small claims matters hearings, obtaining advice to understand the risk and to assist with the process is important.
If your business needs help with compliance toward avoiding underpayment risks, or in relation to a small claim, Emplawyer is here to help.
