Can you obtain unfair dismissal compensation for shock, hurt or distress?
Being dismissed from your job can be a distressing experience. Many employees feel humiliated, anxious, or deeply upset by the way they were treated. However, under Australian workplace law, compensation for unfair dismissal is limited to covering actual lost income — not emotional harm.
Even if the dismissal process caused you significant shock, distress, humiliation, or hurt, the Fair Work Commission cannot award extra compensation for these feelings. This restriction is strict and leaves no room for flexibility.
Can You Obtain Compensation for Shock, Hurt or Distress?
No, not when making a claim for unfair dismissal through the Fair Work Commission.
Australia’s national employment law, the Fair Work Act 2009 (Cth), explicitly states that the Commission must notorder compensation for shock, distress, humiliation, or other similar emotional hurt caused by the manner of a dismissal.
The Commission does not have any discretionary power to vary this rule in an unfair dismissal claim. Even if the employer’s behaviour during the dismissal process was humiliating or cruel, the law does not allow financial compensation for emotional harm through this avenue.
What the Law Focuses On
When awarding compensation for unfair dismissal, the Fair Work Commission can only consider Lost wages that would have been earned if the dismissal had not occurred. It cannot factor in shock, distress, humiliation, hurt feelings, any other emotional suffering
This position reflects a long-standing common law principle that emotional harm resulting from dismissal is not compensable.
The primary goal of the unfair dismissal process is to restore the employee’s financial position as if the dismissal had not happened — not to punish employers or provide general damages for hurt feelings.
Why This Rule Matters
Many employees understandably feel that the emotional fallout from a dismissal should be recognised. However, the legal system has drawn a firm line between:
Financial loss that can be calculated and compensated, and
Emotional suffering, which falls outside the scope of unfair dismissal remedies.
If an employee wants to claim damages for psychological injury or emotional harm, this would usually need to be pursued through a separate legal process (such as a workers’ compensation claim or a general protections claim in certain circumstances), not through an unfair dismissal application.
Practical Tips for Employees
Focus on lost wages: When making an unfair dismissal claim, concentrate on your financial loss. Emotional distress will not be considered in assessing compensation.
Be realistic about remedies: The main remedies available through the Fair Work Commission are reinstatementor compensation for lost income.
Seek personal support separately: If the dismissal has affected your mental health, consider seeking counselling or other support services outside of the legal process.
