Alex is Sprintlaw’s co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
If you run a small business in Brisbane, dealing with an unfair dismissal claim can feel stressful, time‑sensitive and confusing. You’re managing rosters, clients and cash flow - and now you’ve got a 21‑day clock and a formal process to navigate with the Fair Work Commission (FWC).
The good news: with a clear process, the right documents, and early advice, you can manage risk, present a strong response and focus on running your business. In this guide, we’ll walk through what counts as unfair dismissal, how the Small Business Fair Dismissal Code applies, the step‑by‑step FWC process, common employer defences, and the key contracts and policies to have in place before and after termination.
While unfair dismissal laws are federal (so the rules are the same across Australia), we’ll speak to Brisbane employers specifically - including a few local practical tips about process and support.
What Counts As Unfair Dismissal Under Australian Law?
In Australia, an employee may bring an unfair dismissal application if they believe their termination was “harsh, unjust or unreasonable.” The Fair Work Commission looks at a range of factors - for example whether there was a valid reason related to capacity or conduct, whether the employee was notified of the reason, and whether they had an opportunity to respond.
The Commission’s checklist of factors appears in section 387 of the Fair Work Act. If you want a quick employer‑friendly run‑through of those criteria, it’s worth reading this overview of section 387 of the Fair Work Act so you know how your decision may be assessed.
Only eligible employees can bring a claim. In most cases, they need to meet all of the following:
- Minimum employment period: At least 6 months’ service, or 12 months if you’re a small business employer (fewer than 15 employees).
- Coverage threshold: They’re covered by an award or enterprise agreement, or their earnings are below the high‑income threshold.
- National system employer: Most Queensland private businesses are covered by the federal system (there are limited state system exceptions).
Timing matters. An employee must lodge their unfair dismissal application within 21 days of the dismissal taking effect. That means you’ll typically hear from the FWC quickly - and you’ll need to respond within strict timeframes.
If the end of employment occurred during a trial period, it can still be challenged in some cases. Your best protection is to ensure your processes are sound from the start and that any probation clause aligns with your termination during probation process and the Fair Work Act.
Are You Covered By The Small Business Fair Dismissal Code?
Brisbane employers with fewer than 15 employees (headcount, not FTE) can access the Small Business Fair Dismissal Code. If you genuinely comply with the Code, the dismissal is deemed fair.
At a high level, the Code says:
- For serious misconduct (for example theft, fraud or violence), you can dismiss without notice if you reasonably believe the conduct occurred. You should still document the basis for your belief.
- For performance or conduct issues that aren’t serious misconduct, you should warn the employee clearly (in writing), give them a chance to respond and improve, and consider support like training.
To rely on the Code, you’ll need evidence. Keep records of warnings, meetings and any support you offered the employee. A simple template for warnings and notes of discussions goes a long way at conciliation.
If serious allegations emerge and you need to keep someone away from the workplace while you fact‑find, consider whether suspension pending investigation or a short paid stand‑down is appropriate for your situation. Your approach should be proportionate and consistent with your contracts and policies.
Step‑By‑Step: How Brisbane Employers Should Respond To A Claim
Here’s a practical roadmap from the moment you receive notice from the FWC.
1) Read The Application And Calendar Your Deadlines
Check the employee’s claims and verify dates. Note the deadline to file the employer response (Form F3). Missing a deadline can weaken your position, so put reminders in your diary immediately.
2) Gather Your Evidence Early
Pull together documents that tell the story of what happened and why dismissal was reasonable:
- Employment contract, position description and any applicable policies (performance, conduct, social media, safety).
- Warnings, performance improvement plans and meeting notes, including any show cause letters and the employee’s responses.
- Incident reports, client complaints, and investigation notes if misconduct was alleged.
- Timesheets, rosters, KPIs, sales reports or quality audits (for capacity/performance issues).
If part of the dispute is about notice or final pay, double‑check any payment in lieu of notice, leave payouts and other entitlements were calculated correctly.
3) File Your Employer Response (Form F3)
Your response sets out jurisdictional objections (for example, minimum employment period not met) and your defence on the merits. Stick to clear, factual statements and attach key documents.
4) Prepare For Conciliation
Most matters go to an FWC telephone conciliation. This is confidential and “without prejudice,” which means you can explore solutions freely.
Think practically about your desired outcome and settlement options. Common outcomes include a modest ex‑gratia payment with a separation deed, a statement of service, and confirmation of resignation or termination by mutual agreement. If you reach a deal, it’s standard to document it via a Deed of Release and Settlement to close off all claims (including general protections and confidentiality).
5) If Unresolved, Prepare For Conference Or Hearing
If the claim doesn’t settle, the FWC may list it for a conference or hearing. You’ll need witness statements, a bundle of documents and a clear chronology. This is often the stage where engaging an employment lawyer becomes cost‑effective because preparation is time‑consuming and advocacy skills matter.
For Brisbane employers, listings may be by phone or video; occasionally they’re in‑person. Either way, the same national rules apply.
Common Risks, Defences And Practical Tips For Employers
Every case is different, but these themes show up frequently - and they’re often where matters are won or lost.
Jurisdictional Objections You Can Raise
- Minimum employment period not met (remember: 12 months for small business employers).
- Not covered by an award or agreement, and earnings exceed the high‑income threshold.
- The application is out of time (lodged after 21 days).
Getting jurisdiction right can end a claim early or narrow the issues dramatically.
Substantive Defences The FWC Considers
- Valid reason: Poor performance, capacity, or well‑evidenced misconduct (for instance breach of policy or safety).
- Procedural fairness: Clear warnings and a chance to respond; reasonable investigation steps.
- Genuine redundancy: If the role is no longer required and you consulted properly, the dismissal may be excluded from unfair dismissal. If redundancy is on the table, get early redundancy advice to reduce risk.
- Small Business Code: If you complied with the Code, that can be determinative.
Practical Tips To Strengthen Your Position
- Consistency is king: Apply your policies evenly across staff. Inconsistent discipline can undermine your defence.
- Document as you go: Short emails or file notes after meetings become powerful evidence months later.
- Proportionate responses: Where appropriate, consider lesser measures first (coaching, warnings, PIPs) unless it’s serious misconduct.
- Mind related risks: If you’ve stood an employee down while investigating, check your obligations and options under standing down pending investigation and your policies.
- Think commercially: Many matters settle at conciliation for pragmatic reasons - cost, time and uncertainty. Price the “cost of distraction” when assessing offers.
Finally, ensure your managers are trained on the basics - many unfair dismissal issues start with a rushed conversation or a poorly worded email. A little training can save a lot of pain later.
Essential Legal Documents And Processes For Terminations
The best unfair dismissal strategy starts well before termination. The right contracts and policies set expectations, guide fair process and give you dependable evidence.
- Employment Contract: Clarifies duties, performance standards, notice, serious misconduct, and policy compliance from day one.
- Performance Management Process: A structured approach (coach, warn, set objectives, review) helps you show procedural fairness. If you need a clear framework for managers, consider a formal performance management process.
- Policies (Conduct, Performance, Social Media, Grievances): Clear, accessible and consistently enforced. Reference them in contracts and make them easy to find.
- Show Cause And Warning Templates: Short, plain‑English letters ensure you cover the essentials and invite a response. This aligns with the Commission’s fairness factors and the Small Business Code.
- Termination Pack: A checklist and template suite for letters, notices, final pay calculations and settlement documents can streamline a tough day’s work; an employee termination documents suite reduces errors and helps keep the process uniform.
- Settlement Deed: If you agree to resolve a dispute, use a tailored Deed of Settlement to finalise all claims (confidentiality, non‑disparagement, release and no re‑engagement are typical clauses).
If an employee is working out their notice or you need to manage a clean exit for senior staff, you might also rely on garden leave provisions to protect the business while they transition.
One last point on calculations: double‑check notice and termination payments, especially if you’re using payment in lieu of notice. Getting the numbers right reduces friction at conciliation and removes easy arguments for the other side.
Key Takeaways
- Unfair dismissal is assessed against specific fairness factors - get familiar with the section 387 criteria and build your process around them.
- If you’re a small business employer in Brisbane, the Small Business Fair Dismissal Code can protect you - but only if you document compliance.
- Move quickly when an application arrives: gather evidence, file your response on time, and prepare commercially sensible settlement options for conciliation.
- Strong contracts, clear policies and consistent performance management are your best defence - invest in your Employment Contracts, processes and a reliable termination pack.
- Consider all risks (including redundancy, stand‑down and related claims) and seek early guidance from an employment lawyer when the facts are complex or the stakes are high.
- If you resolve a dispute, finalise it properly with a Deed of Release and Settlement to close out future claims.
If you’d like a consultation with unfair dismissal lawyers for Brisbane employers - including help with responses, conciliation prep or settlement terms - you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.








