Losing Your Job: A Guide to Unfair Dismissal and the Fair Work Process

Losing a job is a stressful and often confronting experience. The Fair Work Act 2009 provides a safety net for employees who believe they have been dismissed in a way that is harsh, unjust, or unreasonable. This is known as an unfair dismissal claim.
Navigating this process can be daunting, especially when faced with strict deadlines and legal complexities. This post will guide you through the essentials of unfair dismissal claims, the process at the Fair Work Commission, and the critical timeframes you need to know.
What is Unfair Dismissal?
An unfair dismissal occurs when the Fair Work Commission finds that:
- You were dismissed, and
- The dismissal was harsh, unjust, or unreasonable, and
- The dismissal was not a case of genuine redundancy, and
- If you worked for a small business, the dismissal was not consistent with the Small Business Fair Dismissal Code.
Harsh refers to the disproportionate consequences of the dismissal on your personal and economic situation. Unjust means you were not guilty of the alleged misconduct or that the employer's reasoning was unfounded. Unreasonable suggests the employer acted without a sufficient evidentiary basis for their decision.
To be eligible to make an unfair dismissal claim, you must have completed a minimum period of employment:
- Six months for businesses with 15 or more employees.
- 12 months for small businesses with fewer than 15 employees.
Additionally, you must be covered by a modern award or enterprise agreement, or your annual earnings must be below the high-income threshold (which is updated annually).
The Clock is Ticking: The 21-Day Rule
This is the most critical aspect of an unfair dismissal claim. You have 21 calendar days from the date your dismissal took effect to lodge an application with the Fair Work Commission. The day your employment ends is day zero.
This deadline is strictly enforced. While the Commission can grant an extension in "exceptional circumstances" (such as a serious illness or a delay caused by your representative), these are rarely granted. It is vital to act immediately if you believe you have been unfairly dismissed.
The Unfair Dismissal Process: A Step-by-Step Guide
Once you lodge your application (Form F2) with the Fair Work Commission, a structured process begins:
Step 1: Application and Employer Response
After you file your application and pay the required fee, the Commission will send a copy to your former employer. The employer then has 7 days to lodge a response, which may include objections to your claim (for example, that you were not an employee or that you filed out of time).
Step 2: Conciliation
In most cases, the next step is a conciliation conference, which is typically held via telephone between three to five weeks after the application is lodged. This is an informal process where an independent conciliator from the Commission facilitates a confidential discussion between you and your former employer.
The goal of conciliation is to help both parties reach a mutually agreeable settlement without needing a formal hearing. A settlement could include financial compensation, a statement of service, or an agreement for the dismissal to be recorded as a resignation or all of the above. Anything said during conciliation is "without prejudice," meaning it cannot be used against you if the matter proceeds to a hearing.
Most cases settle at conciliation.
Step 3: Hearing or Conference
If the matter is not resolved at conciliation, it will proceed to a more formal stage. This could be a conference or a hearing before a Commission Member.
At this stage, both you and your former employer will need to present evidence and witness testimony to support your respective cases. The Commission will then make a formal decision based on the merits of the arguments presented.
Remedies for Unfair Dismissal
If the Fair Work Commission finds that you have been unfairly dismissed, it can order one of two primary remedies:
- Reinstatement: This is considered the primary remedy, where you are given your job back with no loss of continuity of service.
- Compensation: If reinstatement is not appropriate (for example, if the employment relationship has completely broken down), the Commission can order compensation. This is capped at the lesser of 26 weeks' pay or half the high-income threshold.
A Note for Small Businesses
The Fair Work Act has special provisions for small businesses. If a small business employer follows the Small Business Fair Dismissal Code, the dismissal will be deemed fair. The Code requires employers to have a valid reason for dismissal based on capacity or conduct and to provide warnings (unless the dismissal is for serious misconduct). This provides a clearer framework for small businesses to follow to ensure they are acting fairly.
If you have been dismissed and believe it was unfair, it is crucial to seek legal advice as soon as possible to understand your rights and ensure you do not miss the strict 21-day deadline.

Senior Solicitor
Email: kristen@hntlegal.com.au








