What is unfair dismissal?
Unfair dismissal is when an employee is sacked in a way that is harsh, unjust, or unreasonable under the Fair Work Act.
Unfair dismissal is when an employee is fired and the dismissal was harsh, unjust, or unreasonable. The Fair Work Commission can order the employer to reinstate the worker or pay compensation.
To claim unfair dismissal, you generally need at least 6 months' service (12 months for small businesses with fewer than 15 employees) and earn under the high-income threshold.
Key facts
- •Must lodge a claim within 21 days of dismissal taking effect
- •Need 6 months' service (12 months for small businesses under 15 employees)
- •Employee must earn below the high-income threshold ($175,000 in 2025-26) or be covered by an award/EA
- •Remedies include reinstatement or up to 26 weeks' pay in compensation
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Can casuals claim unfair dismissal?
Only if they were employed on a regular and systematic basis for at least 6 months and had a reasonable expectation of ongoing employment.
What is the Small Business Fair Dismissal Code?
Small businesses (under 15 employees) can follow a simplified dismissal code. If they follow it correctly, the dismissal is considered fair regardless of other factors.
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.