Guide · updated November 2026

How much compensation for unfair dismissal?

The main remedy is reinstatement. If that's not appropriate, the FWC can order compensation for lost wages only, not for shock, distress or humiliation. Compensation is capped at the lesser of 26 weeks' pay or A$95,050 (dismissals from 1 July 2026). Money you've earned since is deducted.

How the FWC works it out

  1. Estimate what you would have earned if you hadn't been dismissed, for as long as you'd likely have stayed
  2. Deduct what you've earned since (and are likely to earn)
  3. Allow for contingencies
  4. Consider other factors, such as misconduct and your efforts to find work
  5. Apply the cap

You must try to find work: it's called mitigating your loss. Keep a record of your applications.

Most claims settle at conciliation, usually for less than the FWC might order, because settling avoids risk and delay for both sides.

Free help and official information: Fair Work Commission: unfair dismissal · Fair Work Commission: legal help and representation (including the free Workplace Advice Service) · Legal Aid NSW: termination of employment · Fair Work Ombudsman: ending employment

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FairGo Work calculates your exact last day to lodge, checks your eligibility and case strength, then builds your Form F2 answers and prepares you for conciliation.

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More: The 21-day deadline for unfair dismissal · Who can claim unfair dismissal? · Unfair dismissal or general protections? · Conciliation: what to expect · Filling in Form F2 · The Small Business Fair Dismissal Code · Was it a genuine redundancy? · Forced to resign: when it counts as dismissal