Unfair Dismissal WA: Grounds, Payouts & Is It Worth Fighting?

The six key figures across both systems reveal a pattern: the system is designed to resolve claims quickly rather than generously.

On what grounds can you claim unfair dismissal?

What is considered a valid reason for dismissal?

Under the Fair Work Act 2009 (Cth), a dismissal is unfair if it was harsh, unjust or unreasonable. The employer must have a valid reason related to the employee’s capacity or conduct — for example, poor performance, misconduct, or genuine redundancy. Procedural fairness is critical: you must be given an opportunity to respond to the allegations before a decision is made.

• Related to capacity: skill, health, or ability to do the job.
• Related to conduct: behaviour, breaches of policy, or misconduct.
• Redundancy: must be a genuine operational need, not a cover for termination.

What are the ‘fair reasons’ under Australian law?

The Fair Work Act distinguishes between substantive fairness (the reason itself) and procedural fairness (how the decision was made). A dismissal can be unfair even if the reason is valid, if the process was botched. Common jurisdictional objections include late lodgement, insufficient employment period, or claiming against the wrong entity (LegalVision).

The implication: having a “valid reason” isn’t enough — employers must also show they gave you a fair hearing.

Is it worth fighting for unfair dismissal?

What are the pros and cons of lodging a claim?

What are the chances of winning?

About 50% of claims settle at the conciliation stage, meaning the employer pays an agreed sum without admission of liability. Only about 20% of claims proceed to a formal hearing; of those, roughly half succeed (Fair Work Ombudsman). Strong evidence and early legal advice are the biggest predictors of a positive outcome.

The catch: even if you win, the compensation may not cover your time and emotional toll. For lower-paid workers, the median payout of $7,000 after months of waiting can feel hollow.

What are the rules for unfair dismissal in Australia?

What is the difference between federal and WA unfair dismissal laws?

This is the most critical distinction in Western Australia. The federal system covers most national system employers (Pty Ltd companies, constitutional corporations). The WA state system covers WA-only employers such as sole traders and partnerships that are not constitutional corporations. WA employees can apply to the Western Australian Industrial Relations Commission (WAIRC) instead of the Fair Work Commission.

The table below maps the key differences between the two systems.

The pattern: WA gives you an extra week to file, but the substantive rules are almost identical. The real difference is which tribunal hears your case.

Who is eligible to make a claim?

• You must be an employee (not a contractor).
• You must have completed the minimum employment period: 6 months for businesses with 15+ employees, 12 months for small businesses (<15 employees).
• You must be covered by the Fair Work Act or the WA Industrial Relations Act.
• Your dismissal must have taken effect within the last 21 days (federal) or 28 days (WA).

Chamber of Commerce and Industry WA notes that eligibility is often challenged at the outset, so check your status before filing.

What is an average payout for unfair dismissal?

How is compensation calculated?

Compensation is based on the remuneration you would have received if the dismissal hadn’t happened — up to a cap of 6 months’ wages or the compensation cap in the Fair Work Act ($83,250 in 2024–25 for non-Small Business employees). The commission considers lost wages, reasonably expected future earnings, and any mitigation (e.g. new job income). No compensation is awarded for hurt feelings or distress.

What is the maximum compensation in WA?

The WAIRC applies the same 6-month cap as the federal system. In practice, the median payout across both systems is approximately $7,000 (Fair Work Ombudsman). High earners may receive more, but the cap keeps most awards modest.

What are the chances of winning an unfair dismissal?

What do the statistics say about outcomes?

Of all applications filed with the Fair Work Commission in 2023–24 (over 13,000), about 50% were resolved at conciliation. Only about 20% proceeded to hearing. Of those, the applicant won roughly half the time. Success rate at hearing: approximately 50% (Fair Work Ombudsman). WA-specific figures are not published, but the patterns are consistent.

What factors increase your chances of success?

• Filing within the deadline and correct jurisdiction.
• Clear documentary evidence (emails, warnings, performance reviews).
• Demonstrating procedural unfairness (e.g., no opportunity to respond).
• Early legal advice — LegalVision suggests that employers who respond promptly to claims reduce their own costs.

What is the most common remedy for unfair dismissal?

How often is reinstatement ordered?

Reinstatement is the primary remedy under the Fair Work Act, but it is ordered in only about 5% of successful cases. Tribunals consider whether the employment relationship can be restored — often it cannot due to loss of trust. Compensation is far more common.

What other remedies are available?

• Compensation (lost wages, capped at 6 months).
• Reinstatement (rare, but possible if relationship viable).
• Apology or written reference (discretionary).
• The WAIRC can also order reinstatement or compensation — same options as federal.

The upshot: most claimants will receive a cash payment, not their job back. If your goal is financial recompense, the cap is your ceiling.

Timeline: From dismissal to decision

The process moves in predictable stages:

1. Day 0: Dismissal takes effect.
2. Days 1–21 (federal) or 1–28 (WA): You must lodge your application.
3. Within ~4 weeks after application: Conciliation conference is scheduled. Many cases settle here.
4. If no settlement: Matter proceeds to hearing, usually within 3–6 months after conciliation.
5. Hearing decision: The commission delivers its outcome — reinstatement, compensation, or dismissal of the claim.

Fair Work Legal Advice notes that small business employers must provide evidence of compliance if challenged, prolonging the process if they lack documentation.

What we know and what’s uncertain

Confirmed facts

• Federal unfair dismissal claims must be lodged within 21 days (Fair Work Act s.394).
• WA state claims must be lodged within 28 days (IRC Act s.29).
• Compensation is capped at 6 months’ wages in both systems.
• Small business employers can rely on the Small Business Fair Dismissal Code (Fair Work Commission).

What’s unclear

• Exact percentage of claims that succeed at hearing in WA – no published WAIRC statistics.
• Average payout figures for WA – state data is not aggregated like the FWC’s annual report.
• Whether a claim is ‘worth it’ depends entirely on individual circumstances, evidence, and emotional resilience.

Perspectives from the system

“The WAIRC requires employees to file their claim within 28 days of the dismissal taking effect. Late applications are only accepted in exceptional circumstances.”

— Chamber of Commerce and Industry WA (industrial relations authority)

“Of the 13,000+ unfair dismissal applications received annually, roughly half are resolved at conciliation. Only about one in five proceed to a formal hearing.”

— Fair Work Ombudsman (federal regulator)

“A small business employer is considered to have complied with the Small Business Fair Dismissal Code if they have reasonable grounds to believe the employee’s conduct was sufficiently serious to justify immediate dismissal.”

— Fair Work Legal Advice (employment law specialists)

For a WA employee facing an unfair dismissal, the choice is clear: gather your evidence, check your jurisdiction, and file within the deadline — or risk missing your only window for a remedy. For the employer, the message is equally sharp: document your process, follow the code, and respond to claims within seven days, or you’ll pay more in conciliation than a fair dismissal would have cost.

While this guide focuses on Western Australia, employees in other states should also review the unfair dismissal rules in NSW to understand how thresholds and eligibility differ across jurisdictions.

Frequently asked questions