What is unfair dismissal in Australia?

Under the Fair Work Act 2009 (s.385), a dismissal is unfair if it was harsh, unjust, or unreasonable — for example, because the employer had no valid reason, did not provide an opportunity to respond, or the reason was inconsistent with how other employees were treated. The Fair Work Commission (FWC) has the power to order reinstatement or pay compensation up to 26 weeks' pay (capped at half the high income threshold, approximately $46,500 for 2026/27).

To make an unfair dismissal claim you must: be an employee (not an independent contractor); have completed the minimum employment period (6 months for employers with 15+ employees, 12 months for small businesses); and not be covered solely by an award or enterprise agreement that provides access to an equivalent remedy. High income earners without an award or enterprise agreement are excluded if they earn above the high income threshold (~$175,000 for 2026).

The application must be lodged with the FWC within 21 days of the dismissal taking effect. Late applications are only granted in exceptional circumstances. There is a $88.90 lodgement fee (waived for financial hardship). The FWC will attempt conciliation first — over 70% of claims are resolved at this stage.