Prime Minister Anthony Albanese used his opening speech at Labor's national conference in Adelaide on Thursday to announce the creation of the Fair Work Court.
The court would operate alongside the Fair Work Commission and will be headed up by expert judges in the field.
"It will resolve disputes faster and at lower costs for both workers and employers," Mr Albanese told the conference.
"Good for workers, good for businesses, good for the country and we're going to do that."
It will be the first federal industrial relations court to be set up since it was abolished by the Howard government in 1997.
Consultation on the design of the court will be carried out in coming months.
The consultation will focus on how the court will work alongside the workplace watchdog and how people would be able to access support.
Mr Albanese said the court would aim to expedite workplace disputes and be a dedicated forum to solving issues.
"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 clam," he said in a statement.
Workplace Minister Amanda Rishworth said the court would make a difference to workplace disputes.
"It is important the system works fairly and efficiently for workers and employers," she said.
"Specialists judges with workplace relations expertise would ensure workplace matters are considered by people with appropriate expertise."
Attorney-General Michelle Rowland said workers would have access to timely support for workplace issues.
"The new Fair Work Court will create a streamlined dispute resolution pathway, drawing on the expertise of specialist judges to make it easier and simpler for workers and businesses to navigate the legal system," she said.
"The government looks forward to consulting with workers, businesses and the legal profession on the final design of the court."
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