What Is a ‘Valid Reason’ for Dismissal? Know the Legal Standards

Under Australian law, a valid reason is not just any excuse — it must meet certain standards. The Fair Work Commission looks at why you were dismissed and how the decision was made. Even if the reason sounds legitimate — like poor performance or redundancy — it still must be genuine, clearly explained, and backed by evidence. Here’s what counts (and what doesn’t) across the four most common types of dismissal.

1. Redundancy: Was the Job Actually No Longer Needed?

A genuine redundancy is not an unfair dismissal — but only if your job really did become unnecessary due to business changes. That means:

• The role itself has disappeared

• No one else is doing the same duties under a different title

• The business followed any consultation obligations in your award or agreement

• You weren’t unfairly selected for redundancy over others without reason

Redundancy is not valid if the employer:

• Just wanted to get rid of you

• Created a fake restructure to avoid unfair dismissal rules

• Hired someone else in your role shortly after your departure

You can still challenge a redundancy if it was a smokescreen for something else.

2. Poor Performance: Were You Given a Chance to Improve?

An employer can dismiss you for poor performance, but only if:

• You were clearly told what was wrong

• You were given a real opportunity to improve

• Support or training was offered

• Expectations were reasonable and achievable

The Commission will not accept vague statements like “you just weren’t meeting standards” unless those standards were communicated and documented.

If there were no warnings, no review meetings, or if the performance issues came out of nowhere — that may be grounds for an unfair dismissal claim.

3. Misconduct: Was the Behaviour Serious and Proven?

Dismissal for misconduct usually involves behaviour like dishonesty, harassment, theft, or serious breaches of policy. But even then, the employer must:

• Conduct an investigation

• Put the allegations to you

• Consider your side of the story

• Base the decision on credible evidence

Minor mistakes, personality clashes, or workplace rumours don’t amount to valid reasons unless properly handled.

The Commission regularly finds dismissals unfair when employers exaggerate conduct or rush to judgement without giving employees a fair hearing.

4. Capacity: Can You Still Perform the Inherent Requirements?

Sometimes employees are dismissed because they can no longer do the job — due to illness, injury, or other limitations.

This can be lawful, but only if:

• The employer accurately identifies what the “inherent requirements” are

• Medical evidence confirms that you can’t meet those requirements

• Reasonable adjustments were considered

• There was a real attempt to explore alternatives

Too often, employers jump to conclusions without proper medical input, or use capacity as a cover for discrimination. You may still have legal rights — under both unfair dismissal and general protections laws — if your health was mishandled.