Fired for Medical Condition / Illness? — Your Rights
Dismissing an employee because of a medical condition or illness is generally not a valid reason and may constitute disability discrimination. Employers have obligations to make reasonable adjustments before considering termination.
Last verified: 1 July 2025Medical Condition / Illness Is Generally Not a Valid Reason for Dismissal
Dismissing an employee because of a medical condition or illness is generally not a valid reason and may constitute disability discrimination. Employers have obligations to make reasonable adjustments before considering termination.
When Is Dismissal for Medical Condition / Illness Unfair?
Dismissal for a medical condition is almost always unfair unless the employer can demonstrate the employee has a permanent incapacity that prevents them from performing the inherent requirements of the role, even with reasonable adjustments. Dismissing during a period of temporary illness or while the employee is on personal leave is particularly problematic.
General Protections
Disability discrimination protections under the Fair Work Act (s351) and the Disability Discrimination Act 1992 (Cth) apply. Employers must make reasonable adjustments under both pieces of legislation. An employee dismissed because of a disability or medical condition can bring both an unfair dismissal claim and a general protections claim.
Process Your Employer Must Follow
The employer must: (1) obtain a current medical assessment of the employee's capacity, (2) consider what reasonable adjustments could be made, (3) consult with the employee about their medical situation and return-to-work options, (4) allow a reasonable period for recovery, (5) consider alternative duties or roles, and (6) only dismiss as a last resort after exhausting all alternatives.
FWC Case Examples
In X v Commonwealth (1999), the High Court established that employers must consider reasonable adjustments before concluding an employee cannot perform the inherent requirements of their role. The FWC regularly reinstates employees dismissed during illness where reasonable adjustments were not considered.
Steps to Take If Dismissed for Medical Condition / Illness
- Obtain medical evidence documenting your condition and any work capacity
- Ask your employer what reasonable adjustments they considered
- Request a return-to-work plan with your treating doctor
- Lodge an unfair dismissal application and/or a disability discrimination complaint
- Contact the Australian Human Rights Commission if you believe you were discriminated against
Time Limit to Lodge
21 days
From the date your dismissal takes effect. Strictly enforced.
Maximum Compensation
26 weeks’ pay
For unfair dismissal. Consider a general protections claim (no cap) for stronger protection.
Calculate Your Entitlements
Frequently Asked Questions
Is medical condition / illness a valid reason for dismissal in Australia?
Medical Condition / Illness is generally not a valid reason for dismissal. Termination for this reason may constitute unfair dismissal and may also breach general protections provisions under the Fair Work Act. The employer bears the reverse onus of proof to show this was not a reason for the dismissal.
Can I claim unfair dismissal if fired for medical condition / illness?
Yes, provided you meet the eligibility requirements: you must have completed the minimum employment period (6 months for large employers, 12 months for small business) and earn below the high-income threshold ($175,000) unless covered by an award or enterprise agreement. You must lodge within 21 days.
What is the difference between unfair dismissal and general protections?
Unfair dismissal focuses on whether the dismissal was harsh, unjust, or unreasonable (capped compensation at 26 weeks' pay). General protections claims apply when dismissal is for a prohibited reason such as discrimination, exercising a workplace right, or union activity. General protections have no compensation cap and the employer bears the reverse onus of proof.
How long do I have to make an unfair dismissal claim?
You have 21 calendar days from the date your dismissal takes effect to lodge an application with the Fair Work Commission. This deadline is strictly enforced and extensions are only granted in exceptional circumstances.
What compensation can I get for unfair dismissal?
The FWC can order reinstatement (getting your job back) or compensation of up to 26 weeks' pay. The amount depends on factors including how long you worked there, your remuneration, efforts to find new employment, and any misconduct that contributed to the dismissal.
Other Dismissal Reasons
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.