Australia

Employment law in Australia

How Australian employment law works: the Fair Work Act national system, the state systems that still cover some workers, unfair dismissal and general protections claims, underpayments, redundancy and employment contracts.

Content date: 6 Sept 2026. This is a content date, not a claim that a solicitor has reviewed this page.

Overview

Employment law governs the relationship between you and the organisation you work for. It decides what you must be paid, how much leave you get, what your employer can and cannot ask of you, how you can be disciplined, and what happens when the job ends. Most of it now sits in one Commonwealth statute, the Fair Work Act 2009 (Cth), supported by modern awards, enterprise agreements, the National Employment Standards and your individual contract of employment.

The single most important thing to understand is that employment disputes run on very short clocks. If you have been dismissed and you want to challenge that dismissal, you generally have 21 days after the day the dismissal took effect to lodge an application with the Fair Work Commission. That is a calendar deadline, not a working-day deadline, and it is only extended in exceptional circumstances. If you do nothing for a month while you think about your options, you may have lost the right to complain about the dismissal at all.

Australia does not have one uniform employment system. The Fair Work Act covers most private-sector employees in every state and territory, and covers everyone in the Australian Capital Territory and (with a narrow exception) the Northern Territory. But state public sector and local government employees in New South Wales, Queensland and South Australia stay in their state systems, Tasmanian state service employees stay in the Tasmanian system, senior Victorian public servants and law enforcement officers are carved out, and in Western Australia every employee of a sole trader, partnership, unincorporated business, local government or the state public sector is in the WA state system rather than the national one. Which system covers you determines which tribunal you file in and what your deadline is. This is a coverage summary for the main employment systems; some federal protections can still apply to workers outside the national system.

This page is general information about how Australian employment law works. It is not legal advice about your job or your dismissal. Because the deadlines are so short, if something has gone wrong at work you should speak to a lawyer quickly rather than waiting for a page like this to answer every question.

Common situations

I was sacked last week and I think the reason was unfair or made up
I was told my role was redundant, but I think they just wanted me gone
I complained about safety or bullying and then lost shifts or was pushed out
I was dismissed while on sick leave, or after telling my employer I was pregnant
I have checked my payslips and I think I have been underpaid for years
My employer has not paid my annual leave, long service leave or redundancy pay
I am being bullied or sexually harassed at work and it has not stopped
I have been called to a disciplinary meeting and I do not know what to say
I have been given a show cause letter and a workplace investigation is running
My contract has a restraint of trade clause and I have been offered a job with a competitor
I resigned because my employer made my position impossible to stay in
I am a casual or a contractor and I want to know whether I am really an employee

Federal legislationShow

Fair Work Act 2009 (Cth)
The central statute of the national workplace relations system. It contains the National Employment Standards, modern awards and enterprise agreements, the general protections in Part 3-1, unfair dismissal in Part 3-2, unlawful termination, sexual harassment disputes and stop sexual harassment orders in Part 3-5A, stop bullying orders in Part 6-4B, and the enforcement, penalty and small claims provisions.
Fair Work Regulations 2009 (Cth)
Regulations made under the Fair Work Act. They set the Fair Work Commission application fee (indexed each 1 July), prescribe the high income threshold, and fill in the detail of award and agreement processes.
Sex Discrimination Act 1984 (Cth)
Prohibits sex discrimination, sexual harassment and harassment on the ground of sex in employment, and imposes a positive duty on employers to take reasonable and proportionate measures to eliminate sexual harassment and sex discrimination.
Disability Discrimination Act 1992 (Cth)
Makes it unlawful to discriminate against a worker or job applicant because of disability, and requires reasonable adjustments unless they would cause unjustifiable hardship.
Age Discrimination Act 2004 (Cth)
Makes age discrimination unlawful in employment, including in recruitment, terms and conditions, promotion and dismissal.
Racial Discrimination Act 1975 (Cth)
Prohibits discrimination on the ground of race, colour, descent or national or ethnic origin, including in employment.
Work Health and Safety Act 2011 (Cth)
The Commonwealth work health and safety statute, mirrored by harmonised state and territory WHS Acts. It underpins duties about psychosocial hazards, including bullying and sexual harassment, and protects workers from discriminatory or coercive conduct for raising safety issues.

Courts and bodiesShow

Fair Work Commission
Australia's national workplace relations tribunal. It hears unfair dismissal applications, general protections and unlawful termination disputes, applications to stop bullying or sexual harassment at work, sexual harassment disputes, disputes under awards and agreements, and it makes and varies modern awards and approves enterprise agreements.
Fair Work Ombudsman
The regulator that provides free information about pay and conditions, investigates underpayment and record-keeping complaints, issues compliance notices and infringement notices, and litigates serious contraventions. It publishes pay calculators, award summaries and the Voluntary Small Business Wage Compliance Code.
Federal Circuit and Family Court of Australia (Division 2), Fair Work Division
Hears general protections court applications, underpayment and civil penalty claims under the Fair Work Act, and runs the small claims procedure for unpaid wages and entitlements of $100,000 or less.
Federal Court of Australia
Hears larger and more complex Fair Work Act claims, adverse action cases, appeals from the Federal Circuit and Family Court, and applications for judicial review of Fair Work Commission decisions.
Australian Human Rights Commission
Receives and conciliates complaints of discrimination, sexual harassment and harassment on the ground of sex under the federal discrimination Acts, as an alternative to the Fair Work Commission or a state equal opportunity body.
Registered Organisations Commission functions of the Fair Work Commission
Regulates registered employee and employer organisations, including union rules, elections, financial reporting and right of entry permits.

How it worksShow

Which system covers you: national or state?

The Fair Work Act applies to 'national system employees' of 'national system employers'. In practice that means almost all private-sector employees everywhere in Australia, plus every employee in the Australian Capital Territory and every Northern Territory employee except members of the NT Police Force. The exceptions matter. In New South Wales, Queensland and South Australia, state public sector and local government employees remain in their state industrial relations systems. In Tasmania, state service employees remain in the state system while local government and private employees are national system. The Fair Work Commission coverage table lists Victoria as national system except state public sector employees at executive and higher managerial levels and law enforcement officers; check the particular employment and issue before relying on that summary. Western Australia is the biggest carve-out: apart from Commonwealth and other nationwide categories, employees of constitutional corporations (typically Pty Ltd companies) are national system, so employees of sole traders, partnerships, unincorporated businesses, local government and the state public sector are covered by the Industrial Relations Act 1979 (WA) instead. Some federal general protections, bullying and sexual harassment provisions can still apply outside the national system. If you file in the wrong tribunal you can lose your deadline, so check coverage before you lodge.

What makes a dismissal unfair under the Fair Work Act?

A dismissal is unfair if the Fair Work Commission is satisfied it was harsh, unjust or unreasonable, it was not a case of genuine redundancy, and, where the employer is a small business, the Small Business Fair Dismissal Code was not followed. The Commission looks at whether there was a valid reason relating to your capacity or conduct, whether you were told that reason, whether you had a chance to respond, whether the employer unreasonably refused a requested support person at a discussion about dismissal, whether you had been warned about unsatisfactory performance, and the size and human resources capacity of the business. Procedure matters as much as substance: employers regularly lose because they had a reasonable concern but sacked someone without ever putting the allegation to them. To be eligible you must have completed the minimum employment period of six months, or twelve months if your employer is a small business with fewer than 15 employees, and you must be covered by an award or agreement or earn less than the high income threshold, which is $190,100 from 1 July 2026.

General protections and adverse action: what is the difference?

Part 3-1 of the Fair Work Act protects you from 'adverse action' taken because you have or exercise a workplace right, because of your union membership or activity, or because of a protected attribute such as race, sex, age, disability, pregnancy, family responsibilities, religion, political opinion or social origin. Adverse action is broader than dismissal: it includes demotion, cutting hours, refusing to promote, threatening, or discriminating between employees. Unlike unfair dismissal, there is no minimum employment period and no high income threshold, and compensation is not capped at six months' pay. The reverse onus in section 361 is powerful: where action for a prohibited reason is alleged, that reason is presumed unless the respondent proves otherwise; the applicant must still establish the other elements of the claim. If the adverse action is dismissal, you have 21 days to apply to the Fair Work Commission. If it is not a dismissal, you can apply to the Commission or go straight to court, generally within six years.

How the Fair Work Commission process actually runs

Nearly every dismissal application starts the same way. You lodge a form and pay the application fee, which is $92.70 for the 2026-27 year and can be waived if paying it would cause serious hardship. The Commission serves the employer, which files a response. The matter is then listed for conciliation, usually a telephone conference with a Commission conciliator, within a few weeks. Conciliation is confidential and informal, and the large majority of matters settle there, often for a payment and an agreed statement of service. If the matter does not settle, an unfair dismissal case is listed for a conference or hearing before a Commission Member, who can order reinstatement or compensation of up to the lesser of 26 weeks' pay or half the high income threshold ($95,050 for dismissals on or after 1 July 2026). A general protections dismissal matter that does not settle results in a certificate, after which a court application generally must be made within 14 days unless the court allows more time. The parties can instead agree to consent arbitration through the Commission.

Recovering unpaid wages and entitlements

If you have been underpaid, you can complain to the Fair Work Ombudsman, which can investigate and require the employer to back-pay you, or you can sue. Court claims for underpayments generally must relate to a period no more than six years before proceedings start. For claims of $100,000 or less you can elect the small claims procedure under section 548 of the Fair Work Act in the Federal Circuit and Family Court or an eligible state or territory magistrates court, where the rules of evidence are relaxed, lawyers generally need permission to appear, and costs are rarely awarded against you. Since 1 January 2025 intentional underpayment of wages or entitlements can also be a criminal offence under the Fair Work Act, with a Voluntary Small Business Wage Compliance Code that a small employer can rely on to show an underpayment was not intentional. Long service leave is usually not a Fair Work Act entitlement at all: it comes from state and territory long service leave legislation, enforced by state regulators and courts.

Contracts, restraints and confidential information

Your written contract still matters even though awards and the National Employment Standards set a floor beneath it. Contracts commonly deal with notice periods, probation, incentive and bonus entitlements, intellectual property, confidentiality and post-employment restraints. A restraint of trade clause is void at common law unless the employer can show it goes no further than reasonably necessary to protect a legitimate business interest such as confidential information, trade secrets or client connection. Courts look hard at the duration, geographic reach and the activities restrained. New South Wales is different: the Restraints of Trade Act 1976 (NSW) lets a court read a too-wide restraint down to a valid scope rather than strike it out entirely. Breach of contract claims, restraint injunctions and claims for unpaid contractual bonuses are generally brought in a state or territory court rather than the Fair Work Commission. The Commonwealth Government has announced plans to ban non-compete clauses for workers earning under the high income threshold, but that reform is not yet law.

State and territory guides

State pages differ for four main reasons. First, coverage: NSW, Queensland and South Australia keep state public sector and local government employees in their own systems, Tasmania keeps state service employees in its system, Victoria carves out senior public servants and law enforcement officers, and Western Australia keeps every non-corporate employer in the state system, with a 28-day rather than 21-day unfair dismissal deadline in the WA Industrial Relations Commission. Second, long service leave is state law everywhere, with different qualifying periods, accrual rates and portable schemes in each jurisdiction. Third, discrimination, workplace surveillance, labour hire licensing and public interest disclosure laws are state statutes with different bodies and different complaint deadlines. Fourth, the practical help available differs: each state and territory has its own legal aid commission, industrial relations regulator, equal opportunity body and community legal centres.

Employment in New South Wales
How employment law works in New South Wales, including which workers are in the national Fair Work system and which stay with the NSW Industrial Relations Commission, NSW long service leave, discrimination and surveillance laws, and where to get help.

Practical guidanceShow

What should you do in the first 48 hours after being dismissed?

Write down the exact date and time you were told, who told you, what reason was given and who else was present, while it is fresh. Ask for the reason for dismissal in writing if you have not been given it. Do not sign a deed of release, settlement agreement or 'mutual separation' document on the spot, because signing usually extinguishes your right to bring a claim, and you need to understand its effect before signing. Save copies of your contract, payslips, position description, performance reviews, warning letters and any relevant emails or messages to a personal account or device before your work access is cut off, but do not take confidential business material you have no right to. Then work out your deadline. For a national-system claim, if dismissal took effect on the 3rd, the 4th is day one and the 24th is day 21. The FWC moves the final deadline to the next business day if day 21 is a weekend or public holiday. Check the applicable state rules separately. Diarise the date and treat it as immovable. Finally, get legal help from a union, a community legal centre, a legal aid commission or a lawyer well before the deadline, not on the last day.

How do you decide between unfair dismissal and general protections?

They are different claims with different tests, and in most cases you can only run one. Unfair dismissal asks whether the dismissal was harsh, unjust or unreasonable. It is a good fit where the employer had a reason but handled it badly, where the penalty was disproportionate, or where a redundancy was not genuine. It has eligibility hurdles: the minimum employment period, the high income threshold if no award or agreement applies, and a compensation cap of 26 weeks' pay. General protections asks whether the employer acted because of a protected reason. It suits cases where the timing is telling, for example a dismissal shortly after you raised a safety complaint, made a bullying complaint, took personal leave, asked about your entitlements or disclosed a pregnancy or disability. It has no minimum employment period, no income threshold and no compensation cap, and the employer carries the onus of proving its reasons. General protections cases are usually longer and riskier, because if the matter does not settle you have to go to court. Speak to a lawyer about the choice early, because the deadline for both is the same 21 days.

How much is an unfair dismissal case actually worth?

Most matters resolve at conciliation for a modest payment plus a statement of service, rather than reinstatement. If a case is arbitrated, the Fair Work Commission calculates compensation by estimating what you would have earned had you not been dismissed, deducting what you have earned since, applying a discount for contingencies and any misconduct, and then applying the statutory cap of the lesser of 26 weeks' pay or half the high income threshold, being $95,050 for dismissals on or after 1 July 2026. Compensation cannot include a component for hurt, distress or humiliation in an unfair dismissal case. This is why mitigation matters: keep records of every job application, interview and recruiter conversation, because a failure to look for work reduces the award. General protections and discrimination remedies differ from unfair dismissal. Some can include compensation for distress; the available remedies and any cap depend on the particular statute and forum.

What counts as a genuine redundancy, and when is it not one?

A redundancy is genuine if the employer no longer requires the job to be performed by anyone because of changes in operational requirements, the employer complied with any consultation obligation in an applicable modern award or enterprise agreement, and it would not have been reasonable in all the circumstances to redeploy you within the employer's enterprise or an associated entity. Each limb is a real test. Consultation must happen before the decision is implemented and must be genuine, not an announcement dressed up as a discussion. Redeployment includes vacancies in related companies, and includes roles you could perform with reasonable training. The redundancy is not genuine if your duties are simply redistributed and then a new person is hired to do essentially the same work, if the 'restructure' is a pretext for removing a particular person, or if the employer never turned its mind to redeployment. Separately from the fairness question, check that notice, redundancy pay, accrued annual leave and any long service leave under your state's Act were all paid correctly.

How do you prove an underpayment?

Start by identifying the industrial instrument that applies. Use the Fair Work Ombudsman's pay and conditions tools to find the modern award and classification for the work you actually did, not the title on your contract. Then rebuild the entitlement pay period by pay period: ordinary hours, overtime, weekend and public holiday penalties, shift loadings, allowances, annual leave loading and superannuation. Compare that to your payslips and bank statements. Employers are required to keep time and wages records and to give payslips, and a failure to do so shifts a practical burden onto them in court under the reverse onus provisions of the Fair Work Act. If the total is $100,000 or less, the small claims procedure is designed for people without lawyers: it is quicker, less formal and rarely results in a costs order against you. Long service leave is a separate claim under your state or territory Act, made to the state regulator or a state court, and casual and portable-scheme service can count in ways that surprise both sides.

What should you know before signing a deed of release?

Almost every negotiated exit ends with a deed. Read it as though you will have to live with every clause, because you will. Check that the payment is described correctly for tax purposes and that any genuine redundancy component is identified, because the tax treatment differs. Check what is being released: a broad release usually covers unfair dismissal, general protections, discrimination, workers compensation in some jurisdictions, and unpaid entitlements, so make sure any wages, leave or superannuation you are still owed are excluded or separately paid. Look at the confidentiality and non-disparagement clauses and make sure you can still speak to your family, your lawyer, your accountant and a regulator. Since amendments to the Australian discrimination framework, be careful with any clause that would prevent you reporting sexual harassment. Confirm what the employer will say in a reference or statement of service. Finally, check for restraints, because employers sometimes insert new or extended restraints into a deed that were not in the original contract.

Where can you get free help with an employment problem?

There is more free help than most people realise. The Fair Work Ombudsman gives free information about pay, leave and entitlements and can investigate underpayments. The Fair Work Commission publishes free step-by-step guides, forms and videos, and runs a free service through which eligible people can speak with a lawyer about a dismissal or general protections issue. Every state and territory has a legal aid commission with employment information, and there are specialist employment community legal centres including JobWatch for Victoria, Queensland and Tasmania, Circle Green Community Legal in Western Australia, the Employment Rights Legal Service in New South Wales, and the Working Women's Centres in New South Wales, Victoria, South Australia, Western Australia, the Northern Territory and the Australian Capital Territory. If you are a union member, your union is usually the fastest route to representation and can appear for you at the Commission without needing permission. Your state law society also runs a solicitor referral service, and many employment lawyers offer a fixed-fee first consultation.

What if you are called a contractor but treated like an employee?

Whether you are an employee or an independent contractor is decided by law, not by the label in the document you signed. For relationships to which section 15AA applies, the Fair Work Act requires consideration of the whole relationship, including how the contract operates in practice. Referral provisions and certain high-earning individuals who validly opt out have different rules, so this is not a universal test for every worker or every legal purpose. Relevant factors include who controls how, when and where the work is done, whether you can delegate the work, who supplies the tools and vehicle, who bears commercial risk, whether you work for others, and whether you present as part of the business. Sections 357 to 359 prohibit specified sham-contracting conduct, including misrepresentation of employment as contracting, subject to a reasonable-belief defence in section 357, and a misclassified worker may be owed years of superannuation, leave, penalty rates and notice, and may be eligible for unfair dismissal. Some genuine contractors also now have protections, including the ability to challenge unfair contract terms in the Fair Work Commission where the statutory eligibility conditions are met, including earnings below the contractor high income threshold, and minimum standards for regulated workers in the road transport and digital labour platform sectors.

Common questions

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

Twenty-one calendar days after the dismissal takes effect, if you are in the national system. The clock starts the day after your last day under the contract, which can be later than the last day you physically worked. The Fair Work Commission can only extend the deadline in exceptional circumstances, and being busy, upset or unaware of the time limit is generally not enough. In the Western Australian state system the deadline is 28 days to the WA Industrial Relations Commission.

Do I need a lawyer to bring a claim in the Fair Work Commission?

No. The Commission is designed to be accessible to people without lawyers, and its website has guides, videos and forms for each step. Lawyers and paid agents actually need the Commission's permission to appear at a hearing or conference, although a union official or an employee of the business does not. Many people run their own conciliation and get help behind the scenes from a union, a community legal centre or the Commission's free legal assistance service.

How much does it cost to apply?

For 2026-27, the Fair Work Commission charges $92.70 for unfair dismissal, general protections, unlawful termination and stop-bullying applications, among other listed classes. Serious hardship can support a fee waiver. A sexual harassment dispute application under section 527F (Form F75) currently has no application fee. The separate legacy Form F72A pathway for sexual harassment that commenced before 6 March 2023 does carry the $92.70 fee. Check the current Commission fees page and the correct form before lodging.

Can I be dismissed while I am on probation?

Yes. A probation period is a contractual arrangement and it does not change your statutory rights, but in practice most probation periods are shorter than the minimum employment period for unfair dismissal, which is six months, or twelve months in a small business with fewer than 15 employees. If you do not meet that period you cannot bring an unfair dismissal claim. You can still bring a general protections claim, because that has no minimum employment period, and you can still claim unpaid entitlements.

Is forced resignation the same as dismissal?

It can be. The Fair Work Act treats a resignation as a dismissal if you were forced to resign because of conduct, or a course of conduct, engaged in by your employer. This is often called constructive dismissal. It is not enough that the job became unpleasant or that you were unhappy; you generally have to show that the employer's conduct left you with no real choice. The same 21-day deadline applies, running from the date the resignation took effect.

What is the difference between the Fair Work Commission and the Fair Work Ombudsman?

The Commission is the tribunal. It decides dismissal claims, makes awards, approves enterprise agreements and deals with bullying, sexual harassment and industrial disputes. The Ombudsman is the regulator and educator. It gives free information about pay and conditions, investigates underpayments and record-keeping breaches, issues compliance notices and takes employers to court for serious contraventions. If your problem is a dismissal you usually go to the Commission; if it is unpaid wages you usually start with the Ombudsman.

Do I get long service leave under the Fair Work Act?

Usually not. Long service leave for most employees comes from the long service leave Act of the state or territory where the employment is based, and those Acts differ on the qualifying period, the accrual rate, whether pro rata is payable on resignation and how casual service is counted. Some pre-modern-award instruments preserve federal long service leave entitlements. Several jurisdictions also run portable long service leave schemes for the building and construction, contract cleaning, security and community services industries, where service counts across employers.

Can my employer enforce a non-compete clause after I leave?

Only to the extent it is reasonably necessary to protect a legitimate business interest such as confidential information, trade secrets or client connection. Courts look closely at duration, geographic area and the activities restrained, and a restraint that simply prevents ordinary competition is void. New South Wales has a special statute that lets a court read a too-wide restraint down to a valid scope. The Commonwealth Government has announced an intention to ban non-compete clauses for workers earning below the high income threshold, but that has not yet become law.

What can I do about bullying or sexual harassment at work?

You can raise a complaint internally, contact a health and safety representative or regulator, or seek a Commission stop order where there is a continuing risk. For sexual harassment occurring or commencing on or after 6 March 2023, Form F75 can seek stop orders or other dispute resolution. Under section 527G the Commission may dismiss an application made more than 24 months after the alleged conduct last occurred. Earlier conduct has transitional rules. Discrimination complaints are another possible route. If you were dismissed, the separate 21-day dismissal deadlines may apply.

How far back can I claim unpaid wages?

Court claims under the Fair Work Act generally cannot relate to a period more than six years before the proceedings start, so the practical limit is six years of back pay. Superannuation shortfalls are pursued separately through the Australian Taxation Office as well as through the Fair Work system. Long service leave claims are governed by state legislation and the relevant state limitation Act. Because records get lost and businesses get wound up, it is much better to raise an underpayment early than to let it run.

Sources

Fair Work Act 2009 (Cth) - Federal Register of Legislation (accessed 6 Sept 2026)
Fair Work Commission - Deadlines (accessed 6 Sept 2026)
Fair Work Commission - Timeframe for lodgment (21 days) (accessed 6 Sept 2026)
Fair Work Commission - High income threshold (accessed 6 Sept 2026)
Fair Work Commission - Compensation cap (accessed 6 Sept 2026)
Fair Work Commission - Increase to the application fee for 2026-27 (accessed 6 Sept 2026)
Fair Work Commission - Who Australia's national workplace relations system covers (accessed 6 Sept 2026)
Fair Work Ombudsman - Fair Work system (accessed 6 Sept 2026)
Fair Work Ombudsman - Unfair dismissal (accessed 6 Sept 2026)
Fair Work Ombudsman - Voluntary Small Business Wage Compliance Code (accessed 6 Sept 2026)
Federal Circuit and Family Court of Australia - Fair work: Small claims (accessed 6 Sept 2026)
Fair Work Commission - Where to find legal help (accessed 6 Sept 2026)
Treasury - Non-compete clauses and other restraints (accessed 6 Sept 2026)
Fair Work Regulations 2009, current text (accessed 6 Sept 2026)
Age Discrimination Act 2004, current text (accessed 6 Sept 2026)
Fair Work Commission, Fees and costs (accessed 6 Sept 2026)
Fair Work Commission, Sexual harassment disputes benchbook (accessed 6 Sept 2026)
Fair Work Commission, Form F75 (accessed 6 Sept 2026)
Fair Work Commission Rules 2024, rule 128 (accessed 6 Sept 2026)

This is general legal information, not legal advice. It does not claim that a solicitor has reviewed this page for your situation, and it does not create a solicitor-client relationship.