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How Much Money Can You Make If You’re Unfairly Dismissed?

How much money can you make if you’re unfairly dismissed?

Thirteen people were awarded more than $100,000 after being unfairly sacked from their job, according to new figures released by the Fair Work Commission.

But the figures also show that the vast majority of those who were unfairly dismissed from employment received a much more modest payout of between $2,000 and $6,000.

The payments are detailed in the FWC’s annual report, and show that in the past financial year, 13596 people lodged a claim for unfair dismissal, and 4117 people lodged a General Protections Dispute involving dismissal.

You only have 21 days to make a claim

If you think you have been unfairly dismissed from employment, you only have 21 days from the date of your dismissal to lodge a claim, so it’s important that you act fast.

The amount of compensation that you might receive depends on how and why you were sacked, and how you decide to take action against your employer.

Depending on the circumstances of your dismissal, there are a few options under the Fair Work Act.

The two most common claims you can lodge are:

  • Unfair dismissal, or a
  • General protections dispute involving dismissal

To find out which claim is the most appropriate to your circumstances, you should contact an expert employee advocacy firm like Industrial Relations Claims who can guide you through the process.

Unfair Dismissal Claim

An unfair dismissal is when you are sacked in a harsh, unjust or unreasonable manner.

Harsh means your dismissal was disproportionate to the offence that you committed.

Unjust means your employer did not have a valid reason to sack you.

Unreasonable is when your employer acted unreasonably when dismissing you, or you were not given procedural fairness.

An unfair dismissal also happens if it was not consistent with the Small Business Fair Dismissal Code, or the dismissal was not a genuine redundancy.

You are eligible to make a claim for unfair dismissal:

1.  If you are covered by a modern award or an applicable enterprise agreement.

2.  If you earn less than $145,400 annually.

3.  If you have been employed for more than six months (12 months if you work for a small business).

How Much Compensation Will I Get?

The maximum compensation the Fair Work Commission can order is six months of your wages – but most cases settle for much less than this.

Almost all unfair dismissal disputes are settled during a conciliation process, long before they ever reach a full hearing in the FWC.

The majority of claims (2889) resulted in a payment of between $2,000 and $6,000, while 825 workers received between $8,000 and $15,000 and 388 negotiated between $15,000 and $30,000.

The following table lists the number of workers and the amounts of compensation they received.

The FWC Annual Report table showing the number of workers and the amounts they negotiated during conciliation.

General Protections Dispute Involving Dismissal

To qualify to make a general protections dispute involving dismissal claim, your dismissal needs to have been the result of you having exercised a workplace right.

For example, if you are sacked for asking about your working conditions, like your hours or pay, or if you are sacked after making a complaint about sexual harassment or some form of discrimination, you are then eligible to make a GPD claim.

How Much Compensation Will I Get?

The advantage with a GPD claim is that the payouts are uncapped (unlike unfair dismissals).

In the past financial year, most GPD claims (666) resulted in a payout of between $2000 and $6,000, while 248 workers negotiated between $6,000 and $10,000 and 180 received between $10,000 and $15,000.

Sixty-four workers negotiated between $30,000 and $60,000, while 13 workers negotiated more than $100,000.

The following table lists the number of workers and the amounts of compensation they received.

The FWC Annual Report table showing the number of workers and the amounts they negotiated during conciliation.

The bottom line

The bottom line is that if you have been dismissed from work and you want to maximise the amount of compensation you receive, you should seek immediate professional advice, and remember you only have 21 days to make a claim, so don’t delay.

We have helped hundreds of workers negotiate the compensation they deserve.  Please call Industrial Relations Claims today on 1300 853 837.

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