Firing Unsafe Staff Now Comes With Extra Risk

Courts see a record wave of dismissal disputes and employers trying to sack unsafe workers are increasingly paying settlements rather than enforcing standards.
Updated on

Employers heading to the Fair Work Commission to defend a dismissal now face a stacked deck of rising claims and limited time for nuance. The tribunal’s general manager reports that by April, total claims for 2025-26 had already reached last year’s record level of 44,000 applications. Its president highlights that unfair dismissal claims jumped 26% in just 12 months.

Unlawful dismissal applications surged even faster, rising 75% over the same period and turning every termination into a potential legal minefield.

Most of these disputes never reach a formal ruling. Fair Work Commission data shows more than 90% of matters resolve at conciliation with no official decision issued.

Conciliators are now so stretched they are steering parties away from debating whether the dismissal was justified. The focus shifts to speed and settlement.

Employers quickly learn the central question is not who was right but how much they will pay for the problem to disappear.

Tribunal members are increasingly frustrated by what they view as weak or opportunistic claims that still demand serious attention. Many applications are described as unmeritorious and are sometimes padded out using artificial intelligence to fabricate or embellish allegations.

These claims slow the Commission’s workflow, but the bigger drag lands on employers. Businesses must divert time and money to prepare responses, engage legal support and negotiate payouts, or else accept ongoing safety or conduct breaches rather than risk a costly fight.

Sources

Updated on

Our Daily Newsletter

Everything you need to know across Australian business, global and company news in a 2-minute read.