Workplace & employment disputes

Unfair Dismissal & Termination Dispute Mediation

Losing a job is one of the most stressful things that can happen. When a termination is challenged, both sides face a formal claim, legal costs and months of uncertainty. Mediation offers a faster, private and less adversarial path to a resolution that everyone can live with — but the 21-day deadline cannot be missed.

In short: An unfair dismissal dispute arises when a former employee believes their dismissal was harsh, unjust or unreasonable, and seeks a remedy such as compensation or reinstatement. In the national system, these claims are made to the Fair Work Commission, which then offers the parties a chance to resolve the matter by conciliation before it ever reaches a formal hearing.

The 21-day deadline you cannot miss. An unfair dismissal application must be lodged with the Fair Work Commission within 21 days after the dismissal takes effect. Extensions are only granted in exceptional circumstances. Do not let the clock run while you decide what to do.

Who can bring an unfair dismissal claim?

Under the Fair Work Act 2009 (Cth), a person generally needs to meet all of the following:

  • They were dismissed (including being forced to resign — constructive dismissal)
  • They completed the minimum employment period — 6 months, or 12 months if the employer has fewer than 15 employees
  • They earn below the high-income threshold, or are covered by a modern award or enterprise agreement
  • The dismissal was not a genuine redundancy, and where a small business is involved, the employer did not comply with the Small Business Fair Dismissal Code

How conciliation and mediation resolve these disputes

When an unfair dismissal application is lodged, the Fair Work Commission usually offers a conciliation — an informal, confidential discussion run by an impartial conciliator. The conciliator does not decide who is right; they help the parties explore a settlement. Around three in four unfair dismissal cases are resolved at this stage, without ever reaching a Commission Member for a decision.

Because the parties design the outcome themselves, a settlement can include things a tribunal cannot order:

  • an agreed compensation payment
  • an agreed statement of service or reference
  • a non-disparagement agreement
  • a mutual release, ending the dispute for good
  • confidentiality over the terms

Private mediation with Mediations Australia can run alongside or instead of the Commission's own process, giving you more time, more privacy and a mediator matched specifically to your matter.

Mediation vs a contested Fair Work hearing
MediationFormal FWC hearing
TimeframeWeeks — often one sessionMonths to over a year
CostFixed, shared, transparentLegal fees + preparation + witnesses
Outcome controlParties decideCommissioner decides
ConfidentialYes — without prejudiceNo — decisions are published
Remedies availableFlexible — agreed termsCapped compensation or reinstatement

When to be cautious

If a dismissal is bound up with allegations of serious misconduct, discrimination or bullying, there may be additional legal avenues and different time limits to consider. A general protections claim has a much shorter lodgement window in dismissal cases — see our general protections and discrimination guide. Getting early advice ensures you choose the right pathway and do not inadvertently give up a right.

Support and further help

Fair Work Commission — unfair dismissal process and forms
Fair Work Ombudsman — workplace rights and entitlements
Legal Aid NSW — free legal help for eligible people
Lifeline: 13 11 14 · Beyond Blue: 1300 22 4636

This page is for general information only and does not constitute legal advice. For personalised guidance, please consult a qualified legal professional or accredited mediator.

Questions & answers

Unfair Dismissal Mediation FAQs

How long do I have to lodge an unfair dismissal claim?+

You have 21 days from the date the dismissal takes effect to lodge with the Fair Work Commission. Extensions are only granted in exceptional circumstances, so act quickly.

Will I have to face my employer in person?+

Not necessarily. Fair Work conciliations are usually held by telephone, and private mediation can be run in a shuttle format where the mediator moves between separate rooms so the parties never have to be face to face.

What sort of compensation might be agreed?+

Settlements vary widely depending on the circumstances, length of service and the strength of the claim. Because the outcome is negotiated, it can also include non-financial terms such as a reference or an agreed statement of service.

Do I need a lawyer?+

It is not mandatory. Many people resolve these matters without a lawyer present. However, given the tight deadlines and the money often at stake, early legal advice is strongly advisable.

Can the agreement be made binding?+

Yes. A mediated settlement is typically recorded in a deed of settlement, creating an enforceable legal agreement that ends the dispute.

Act fast — the 21-day deadline cannot be missed.

Book a free consultation now. Whether you have been dismissed or are facing a claim, mediation gives you a faster, private path to resolution.

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