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: 21 May 2026Dismissing 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.
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.
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.
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.
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.
21 days
From the date your dismissal takes effect. Strictly enforced.
26 weeks’ pay
For unfair dismissal. Consider a general protections claim (no cap) for stronger protection.
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.
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 ($183,100) unless covered by an award or enterprise agreement. You must lodge within 21 days.
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.
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.
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.
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FairWork Mate is an independent commercial service. We are not affiliated with, endorsed by, or associated with the Fair Work Ombudsman, the Fair Work Commission, or any Australian Government agency. Content is 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.
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