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FWCFair Work Commission · 2026

the Applicant v Bungree Aboriginal Association Ltd

Citation: [2026] FWC 2656

At a glance

Employees affected
1

What happened

the Applicant was employed by Bungree Aboriginal Association (Bungree) until her dismissal on 24 July 2025, while she was receiving workers’ compensation payments for a psychological injury. the Applicant raised concerns about management and workload pressures in late 2024, leading to stress leave in December 2024. Bungree contends the dismissal was due to the Applicant's incapacity to perform her job.

What was decided

The Fair Work Commission found Bungree did have a valid reason for dismissing the Applicant because of her inability to perform the inherent requirements of her position. The Commission considered whether the Applicant could return to work and if adjustments could be made, but determined there was no scope for reasonable adjustment. Compensation was awarded to the Applicant.

What it means for employers

Employers must carefully consider an employee's capacity when dealing with psychological injuries and workers’ compensation claims. It is crucial to have objective evidence supporting the inability of an employee to perform their job, especially regarding inherent requirements. A dismissal based on incapacity requires careful assessment of future capacity and potential reasonable adjustments.

What it means for employees

Employees experiencing work-related stress or mental health issues should seek medical advice and communicate concerns to their employer. If dismissed due to perceived incapacity, employees have the right to challenge the fairness of the dismissal process and seek remedies if it is deemed harsh, unjust, or unreasonable.

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unfair-dismissalunderpaymentpenalty-ratesgeneral-protectionsmisclassificationlong-service-leaveparental-leavesexual-harassment

Every statement above is drawn from the published decision. Read the original here:

https://www.fwc.gov.au/documents/decisionssigned/pdf/2026fwc2656.pdf

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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections

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