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What is adverse action?

Adverse action is when an employer treats a worker badly for exercising a workplace right, like firing or demoting them.

Adverse action is when an employer does something harmful to an employee because they exercised a workplace right. This includes dismissal, demotion, changing someone's duties to their disadvantage, or refusing to hire them.

It's illegal under the Fair Work Act. If you make a complaint about your pay and then get fired, that could be adverse action — and the employer has to prove they didn't sack you for that reason.

Key facts

  • Includes dismissal, demotion, discrimination, and altering duties to an employee's detriment
  • The employer bears the burden of proof — they must show the action wasn't for a prohibited reason
  • Applies to employees, contractors, and prospective employees
  • Maximum penalties of over $93,000 per contravention for companies

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Frequently asked questions

What's an example of adverse action?

If you ask your employer about unpaid super and they cut your shifts in response, that's adverse action. They treated you badly because you exercised a workplace right.

How do I prove adverse action?

You don't fully have to — the Fair Work Act reverses the burden of proof. Once you show the action happened and you exercised a right, the employer must prove the two weren't connected.

General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.