The states and the unions challenged the validity of the new laws, saying they were unconstitutional because they were set up under the corporations power in the Constitution.
However the High Court has found the laws are valid, and that it was appropriate for the Government to base its new laws on the corporations power.
The court also rejected the challenges to particular sections of the Act.
Two of the seven judges, Micheal Kirby and Ian Callinan, dissented from the majority.
The chief executive of the Australian Industry Group, Heather Ridout, says the High Court's decision provides companies with more stability.
13 Nov. 2006
High Court dismisses workplace law challenge:
at 5:55:00 pm