What You Need to Know About Wrongful Termination

The Australian government works to protect the rights of every employee, but the country is no stranger to unfair practices at the workplace. A large number of people get laid off from their jobs every year. The country has witnessed a more significant rise in unemployment last year, brought about by the loss of 835,000 jobs

With the unemployment rate having risen to 7.1 per cent early last year, it would seem more likely that there would also be an increase in the number of wrongful dismissal claims. 

What Is Wrongful Dismissal?

Wrongful dismissal refers to when an employee was dismissed from a job in a manner that is unfair or breached the terms of the contract employment. 

If you feel like you’ve been let go from your company in suspicious circumstances with harsh judgement or unjust behaviour, then you may want to reach out to an employment dispute lawyer so that you can file a claim.

What Constitutes Wrongful Dismissal?

Before filing a claim, you should first understand if you have the right to do so in the first place. Keep in mind that wrongful dismissal and unfair dismissal are not interchangeable. 

Wrongful dismissal refers to a breach of contract of the employment contract, while unfair dismissal occurs when an employee is laid off from their job. The Fair Work Commission will decide whether their termination was harsh, unjust, and unreasonable and if the employer didn’t follow the proper dismissal procedure.

It’s important to note that even if you have a strong case and have the best employment dispute lawyer in Perth, there’s very little chance of returning to the same position you were in before dismissal. 

The Fair Work Commission may not order reinstatement if:

  • The business isn’t operating anymore;
  • You’re unable to work because of illness or injury;
  • You and your employer can’t work together again because of a problem in your relationship; or
  • The employer would only dismiss you again.

Wrongful Dismissal Compensation

Even if you’ve been wrongfully dismissed, you may still not get compensation. To determine the amount of compensation to order (if any), the Commission will consider the following factors:


First, the Commission will work out the duration of your stay in the company if the employer had not dismissed you. Through this, they will figure out how much money you would have earned if you weren’t removed from your position in the company. 

To help with this calculation, they will look at the length of your stay at the organisation. The Commission will also look at other issues with your work history and your performance and behaviour problems.


Next, the Commission must consider any money you earned since the dismissal occurred. Besides income support payments, they will take into account income earned between making an order for compensation and the time that the money is paid.

The amount will be subtracted from the compensation you will receive. 

Efforts to Reduce Loss

When considering ordering compensation, the Commission will consider the steps you’ve taken to reduce your loss. In addition, they will take into account the deliberate, positive steps you’ve taken to lessen the effect the dismissal has had on you.

Unreasonable steps in reducing your loss include spending money or selling your possessions.

Compensation Cap

The Commission will reduce the order for compensation if the amount calculated exceeds the limit set by the compensation cap. The compensation cap must range between half of your annual wage and $74,350.


No one should be wrongfully terminated from their jobs—every Australian is entitled to fight for their employee rights and receive the compensation they deserve. To guarantee your win with your wrongful dismissal claim, make sure to work with a skilled employment dispute lawyer.

Are you a victim of wrongful dismissal? Leave it to the best employment dispute lawyers in Perth to help you get through your ordeal! We at Workclaims Australia provide legal advice, representing parties at all stages of the complaint process from raising a claim, mediation, hearing, tribunal or going to court. Reach out to us to learn more!

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