The (awkward) consequences of an unfair dismissal claim

What happens when you find yourself subject of your employee’s successful unfair dismissal claim? The court’s powers include: 

1. Reinstatement of the employee’s position, or
2. Order of (monetary) compensation. 

While simply paying out the employee may sound attractive at this point, unfortunately the Fair Work Commission must usually order reinstatement rather than a compensation order. 

If you are subject to an unfair dismissal claim, it is best to be proactive in your response by securing good legal representation. It may be possible to negotiate a settlement with the employee early in the process. 

If you have further questions, please contact us at frank@franklaw.com.au

This is not legal advice. 

Written by Tim Cargill & Zdenka Marinov and edited by Andrew Graham.