Unfair Dismissal Payouts Explained

Having a stable job is paramount in order to provide your daily needs. Day in and day out, you work tirelessly to make sure that you are giving your best whether it is in hope of getting a promotion, a raise, or even as simple as keeping your job. What if, one day, that suddenly gets taken away from you? What if you walk into a meeting only to be told that you have been dismissed from your post? You may have just experienced an unfair dismissal.

Unfair dismissal is one of the many issues plaguing employment in Australia. A dismissal is considered unfair when it is harsh (dismissal was overly severe in the context of the worker’s situation), unjust (dismissal was on the grounds of unfair treatment, bias, or discrimination), or unreasonable (no valid reason was given for the dismissal, or the worker was not given a chance to defend themselves).

If you believe that your dismissal falls under any of these three, then you can lodge an application at the Fair Work Commission for unfair dismissal. At Close Consulting, we can help you lodge an unfair dismissal claim.

How to Lodge an Unfair Dismissal Claim

Losing your job out of nowhere may leave you confused or distraught. Whether you have been with your company for years or even just a few months, you are entitled to make a claim as it is your right under the Fair Work Act 2009. Here’s a rundown of how we can help you with your claim, and what you can expect moving forward.

Free Consultation

We understand that being dismissed suddenly is already a big problem to deal with on its own so we offer free consultations for it. With this consultation session, you can share your story with us so that we can better understand your situation.

Feel free to share the duration of your employment, your duties and responsibilities, and most importantly, what happened on the day you were dismissed – who from your company spoke with you, what they advised you, when it happened, and, if possible, the reason behind it. This will ultimately give us an idea of whether or not we can give you a win for your unfair dismissal case.

Case Assessment

After hearing your story, our team of unfair dismissal experts will look further into the details you have shared and how it fits with the criteria set under the Fair Work Act for unfair dismissals. During this phase, we will evaluate your working relationship with your employer and colleagues, your employment contract, and any enterprise agreements that may impact your dismissal rights. This is to find out if your dismissal was in accordance with the terms they have set prior to the start of your employment.

To give you an idea, among the minimum criteria set by the Fair Work Commission is your period of employment. You are eligible when you have been employed for at least six months if your employer has 15 employees or more, and at least 12 months if they have less than 15 employees. Your salary must also be less than the high income threshold, which is at $175,000 as of 1 July 2024. Should you exceed this, you may still be eligible if you are covered by a modern award or enterprise agreement.

Documentation Preparation

Once you have met the minimum criteria for unfair dismissal based on our assessment, it is time for the paperwork. Get ready to prepare all the necessary documents you can provide in relation to your case. Some of the most important documents to have are your termination letters, performance reviews, signed contracts and agreements, and other related documents like emails and text messages pertaining or leading up to your dismissal.

We’ll also help you in securing and filing forms from the Fair Work Commission. It’s important to note that you have a 21-day time limit since you were dismissed when filing for a claim, so time is of the essence. We will work closely with you to ensure that your application is complete before we submit them to the Commission.

Representation and Negotiation

Once the Fair Work Commission deems that you are eligible to make an unfair dismissal claim, Close Consulting will be representing you in all of the discussions moving forward. This includes providing conciliation support to ensure that your rights as an employee are defended and that you get the entitlements you deserve.

At this stage of the process, the Commission will arrange a conciliation with your employer where you have an opportunity to air your grievances. This is also where you and your employer may enter into a settlement with a combination or all of the following outcomes: compensation for lost income, reinstatement, for your dismissal to be recorded as a resignation, statement of your service, and a written or verbal apology.

Reaching a settlement may already be considered a conclusion to your claim since you will be asked to sign a deed. This deed essentially prevents you from pursuing any further legal action against your employer, releasing them from any other liabilities that may come up thereafter. As your legal counsel, this is something we can definitely discuss before you make your decision.

If a settlement has not been reached, you have the option to escalate your unfair dismissal claim to a hearing at the Fair Work Commission. Both parties will have the opportunity to try their cases in front of the Commission and present and cross-examine witnesses until a verdict is reached.

Unlike conciliations, the Commission’s outcomes are only limited to the following: dismissal of your case if you do not meet the criteria for unfair dismissal, order for compensation, or order for reinstatement.

Eligibility Assessment

The duration of the unfair dismissal process varies widely depending on the complexity of the case. From consulting with us up to reaching a conclusion with the Fair Work Commision, this may take several weeks or even months before reaching a resolution. Rest assured, Close Consulting will be with you every step of the way, and we will fight until you get the unfair dismissal payout that you rightfully deserve.

How to Compute Your Payouts

Should the Fair Work Commission order for compensation as a result of the unfair dismissal claim, you are entitled to receive payouts of up to $87,500. But how do you exactly compute the payout you will receive?

The Commission may order compensation based on two amounts: (1) The amount you would have likely earned had you not been dismissed unfairly after deductions are made; and (2) the compensation cap of $87,500 as of 1 July 2024.

Remuneration ‍

Remuneration refers to the amount of time you would have stayed with your employer if you were not unfairly dismissed. The Commission will be looking at the length of your employment with your employer, your work history, and your performance and behaviour at work.

Deductions

The Commission deducts income and wages from the payouts from the remuneration. This refers to the earnings of the employee from when the employer was ordered to pay, and the date they intend to pay the employee.

There are also deductible contingencies that the Commission considers which may have a positive or negative impact on the employee. These include lesser paying jobs, high cost of travelling to work, accidents, sickness, unemployment and industrial disputes, and possible benefits such as starting a job with a higher salary.

Misconduct is also another thing that the Commission looks at for deductions. They check if situations where you committed misconduct may have happened before or after the dismissal. Misconduct includes the following behavior: threats of violence, swearing at management, a breach of workplace health and safety, and negligent culpability.

Efforts to Reduce Loss

Over the course of proceedings, you may consider exploring opportunities elsewhere because this can be considered by the Commission when computing the compensation. This counts as a reasonable effort from your end to reduce your losses and the impact of your dismissal. However, if you have made no effort to reduce your loss, this may also be a reason for further deduction.

There are also instances wherein the employer may offer re-employment or reinstatement. You cannot claim a loss if you refuse a new job offer from your employer with the same pay rate. However, you may claim a loss if the employer offers the same pay rate for a lesser status or if you have completely lost trust and confidence in your employer and their workplace.

In the event that you accept re-employment from your employer, the Commission can order a continuity of service, which goes on top of the compensation.

Get Your Payout With Close Consulting’s Help

Being unfairly dismissed can be disheartening, but knowing your rights and entitlements as an employee is a big help throughout this ordeal. Should your case fit the criteria under the Fair Work Act, you have a chance to get compensation for your losses by lodging an application at the Fair Work Commission.

This is a big task at hand and it can get overwhelming. With the help of our team of unfair dismissal experts at Close Consulting, you have a fighting chance. We’ll make sure to give you the best possible representation every step of the way—from the time you lodge an application until after a conclusion has been made by the Commission. You can use the unfair dismissal payouts you will receive to get back on your feet.

Take advantage of our free consultation and let’s see how we can take your unfair dismissal claim forward. You may call us at (03) 9211 9944 or email at admin@closeconsulting.biz. You can also reach us through our website.

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