Unfair Dismissal
Unfair dismissal is termination without a valid reason or proper procedure can be various types like automatic, conduct, redundancy, discrimination, whistle-blowing, or retaliation.
What is Unfair dismissal?
Unfair Dismissal is refers to the termination of an employee’s contract of employment by the employer in an unjust or unreasonable manner.

Here are some points to consider when understanding unfair dismissal:
- The employee must have been employed for a minimum of 2 years (with some exceptions) to be eligible to make a claim for unfair dismissal.
- The employee must make a claim of unfair dismissal to the Fair Work Commission (FWC) within 21 days of the dismissal.
- The employer has the burden of proving that the dismissal was fair and reasonable in the circumstances.
- The FWC will consider whether the dismissal was harsh, unjust or unreasonable by taking into account factors such as the employee’s conduct, the employer’s conduct, the reason for the dismissal, and whether the employer followed a fair process.
- If the dismissal is found to be unfair, the FWC may order the employer to reinstate the employee or compensate them for lost wages.
- There are some specific types of dismissal that are considered as automatic unfair dismissal, such as dismissal for being pregnant, for making a complaint about discrimination or for taking protected industrial action.
- Employers must follow the fair process before dismissing an employee, such as giving a warning, conducting an investigation and giving the employee a chance to respond.
- Employers must have a fair reason for dismissal, such as poor performance, misconduct, or redundancy.
- Employers must follow the correct redundancy procedures if the dismissal is for redundancy.
- The laws and procedures for unfair dismissal varies between different countries and regions, it’s important to check the specific laws that apply to your case.
What are the different types of Unfair dismissal?
There are several different types of unfair dismissal, including: HBR’s unfair dismissal and employment law research
- Automatic unfair dismissal: This occurs when an employee is dismissed for a specific reason, such as pregnancy or trade union membership. These types of dismissals are considered automatically unfair and do not require the employee to have completed the minimum service period.
- Unfair dismissal by reason of conduct: This occurs when an employee is dismissed for poor performance or misconduct. The employer must prove that the dismissal was fair and reasonable in the circumstances.
- Unfair dismissal by reason of redundancy: This occurs when an employee is dismissed due to a genuine redundancy, but the employer has not followed the correct procedures or has not provided adequate notice or compensation.
- Unfair dismissal by reason of discrimination: This occurs when an employee is dismissed because of their race, gender, sexual orientation, religion, or other protected characteristic.
- Unfair dismissal by reason of whistle-blowing: This occurs when an employee is dismissed for making a public interest disclosure or reporting misconduct.
- Unfair dismissal by reason of retaliation: This occurs when an employee is dismissed for asserting their rights or making a complaint.
What is the process for Unfair dismissal?
The process for unfair dismissal typically involves the following steps:
- The employee must make a claim of unfair dismissal to the Fair Work Commission (FWC) within 21 days of the dismissal.
- The FWC will assess the claim and determine if it has jurisdiction to hear the case. If the FWC determines that it does not have jurisdiction, the employee may be able to seek a remedy through a different avenue, such as the court system.
- The FWC will then conduct a conciliation conference, which is an informal meeting between the employee and the employer to try to resolve the dispute. If the dispute is not resolved at the conciliation conference, the FWC will proceed to a formal hearing.
- At the formal hearing, both the employee and the employer will be given the opportunity to present evidence and make arguments in support of their case. The FWC may also hear from witnesses.
- The FWC will consider all of the evidence and arguments presented and make a determination as to whether the dismissal was unfair.
- If the dismissal is found to be unfair, the FWC may order the employer to reinstate the employee or compensate them for lost wages. The FWC may also order the employer to pay a penalty.
- If either party is dissatisfied with the FWC’s decision, they may be able to appeal the decision to a higher court.
It is important to note that laws and procedures for unfair dismissal vary between different countries and regions. It is important to check the specific laws that apply to your case. SHRM’s unfair dismissal guidance
Understanding unfair dismissal law : especially in international contexts : protects HR from costly litigation and ensures termination decisions are procedurally and substantively fair. Using pre-employment assessments alongside a structured hiring plan drives results. Strong talent acquisition focused on skills-based hiring improves outcomes.
Frequently asked questions
Unfair dismissal is a statutory employment protection concept in many jurisdictions (particularly UK, Australia, EU member states) that prohibits employers from terminating employees without a fair reason and a fair procedure. Unlike the US at-will employment default, unfair dismissal law requires employers to demonstrate a legitimate reason for termination (conduct, capability, redundancy, statutory illegality, or some other substantial reason) AND follow a procedurally fair process. Dismissal without either fair reason or fair procedure is ‘unfair.’
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