Unfair Dismissal Compensation: Current Limits and Process

Check coverage and the dismissal date

Eligibility depends on service, employer size, coverage and exclusions. The high income threshold is $190,100 for dismissals from 1 July 2026. Being above it does not automatically exclude an employee who is covered by an award or enterprise agreement. Obtain advice about the actual employment relationship.

Act within the application period

An unfair dismissal application generally must be made within 21 days after the dismissal takes effect. Extensions require exceptional circumstances. Do not rely on a calculator to decide the filing deadline. The 2026–27 FWC application fee is $92.70, with a hardship waiver process.

Understand the compensation ceiling

For dismissals from 1 July 2026, the cap is the lower of remuneration for the preceding 26 weeks and $95,050. This is a ceiling, not a typical award or an amount every successful applicant receives. The Commission considers reinstatement and the statutory compensation factors.

Keep separate entitlements separate

Notice, redundancy, unpaid wages and other employment claims have different requirements. Adding them to an invented unfair-dismissal midpoint can misrepresent both eligibility and outcomes. Seek advice on the relevant claims and evidence.

Prepare useful records

Keep the dismissal communication, employment documents, pay records and a dated chronology. Note efforts to find other work and actual lost earnings. A settlement discussion does not establish what the Commission would award. No percentage of salary reliably predicts the result.

Official sources

Read the FWC compensation cap and 2026–27 fees and thresholds. The estimator is educational only. Consult a qualified Australian lawyer for advice.