29 Jun 2022

Unfair Dismissal Outcomes

The Fair Work Commission can apply one of three potential orders when deciding the outcome of an unfair dismissal claim.

At Cooper Green Lawyers we understand that all cases are different. Despite this the Fair Work Commission has three orders available for unfair dismissal cases:

1. Reinstatement;
2. Compensation; or
3. No Order.

Fair Work Commission

1. Reinstatement

The commission may consider it appropriate for the employee to be reinstated.  However, this option could be ruled out if:

  • The business has ceased operations;
  • The employee is prevented from working due to injury or illness;
  • There has been a breakdown in the employee-employer relationship; or
  • it is likely that the employer would dismiss the employee again.

2. Compensation

Compensation includes money paid to the employee in consideration of the unfair dismissal. The limit on the total compensation that can be awarded is the lower of 50% of an employee’s annual salary or $76,800.

In order to determine the appropriate amount of compensation, the Commission will first determine how long the employee would have remained employed had they not been dismissed. They must also take into account the length of their employment and any performance or behaviour issues raised in that time.

The Court may then deduct any of the following amounts from the compensation payable:

  • Wages or income earned: Any wages or income earned since the dismissal (not including income support payments);
  • Employer viability: The effect that a compensation order may have on the Employer’s ability to continue to operate;
  • Misconduct: Any employee misconduct amounting to a breach of workplace health and safety, negligent culpability, threats of violence or swearing at management; and
  • Any other relevant matters e.g. unemployment, lower or higher paying job, increased transport costs or sickness.

It is also important that the person takes reasonable steps to mitigate their loss. The employee cannot refuse offers of re-employment for the same pay but less responsibility with the employer and must be actively seeking employment whilst unemployed.

3. No Order

In a very limited amount of cases, the parties may not be able to reach a settlement at Conciliation and the matter will be referred to hearing.

How can Cooper Green Lawyers help?

At Cooper Green Lawyers our specialised employment lawyers and have an expert understanding of unfair dismissal claims.  Our goal is reach the best outcome for out clients including compensation.

Contact our office today on 1800 314 436 or visit our Website today for your free consultation with one of our solicitors.


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