Unfair dismissal

An unfair dismissal occurs when an employer terminates an employee in a manner that is excessively harsh or without a fair reason. For example, firing someone without proper warning or for a minor mistake could be seen as unfair. This term also applies if the process used for dismissal was unfair, even if the reason for dismissal might be valid. It's important to note that dismissals due to genuine redundancy, where the job no longer exists are not considered unfair.

Who can claim unfair dismissal

Rates current from 1 July 2026.

An employee can make a claim if they have completed the minimum employment period (6 months, or 12 months with a small business employer) and are covered by a modern award or enterprise agreement, or earn less than the high income threshold of $190,100. Claims must be lodged with the Fair Work Commission within 21 days of the dismissal. The maximum compensation is $95,050 or 26 weeks' pay, whichever is less. For example, dismissing an employee without giving them a chance to respond to the allegations can make a dismissal unfair.

Read our guide to unfair dismissal, or get Fair Work representation for employers.