Why Conciliation is the Smartest Platform to Settle Unfair Dismissal Claims
If you’ve been dismissed and are considering an unfair dismissal claim, you might think your best chance at justice lies in a formal hearing before the Fair Work Commission. But in reality, the most productive opportunity to resolve your matter may come much earlier — at the conciliation conference, despite being a voluntary process it is commercially the best platform to settle for both parties, even if your former employer believes they have a claim.
Conciliation isn’t just a procedural step; it is the most effective and flexible stage to reach a meaningful resolution. Here’s why.
Private, Low-Pressure and Off-the-Record
Conciliation is a confidential process facilitated by an independent conciliator from the Fair Work Commission. Unlike a formal arbitration hearing, it’s not adversarial, not recorded, and not public. That means both you and the employer can speak freely, explore practical options, and work toward a solution — without the pressure of defending every decision or reliving every detail.
This more informal setting can be a relief, especially for employees who are already stressed or anxious about the situation. It’s a space where you can be heard without needing to undergo cross-examination or be grilled about your actions.
No ‘Winner’ or ‘Loser’
In a formal Commission hearing, there’s a clear winner and loser. A Member will either uphold your claim or dismiss it. That binary result can feel like all or nothing.
Conciliation doesn’t work that way. It’s a negotiation — not a judgment. No one is declared right or wrong, and both parties retain control over the outcome. That means the employer can resolve the matter without admitting liability, and you can secure a fair outcome without needing to “prove” anything in court.
It’s a win-win opportunity — and it often leads to more collaborative, respectful outcomes.
You Can Negotiate More Than the Commission Could Ever Award
In a formal unfair dismissal decision, the Commission’s powers are limited. They can only award, if at all:
Reinstatement (which is rare)
Compensation capped at 26 weeks’ pay (also rare, if seemingly impossible; the average sits around 4-6 weeks)
No amounts for hurt, humiliation or distress.
That’s it. In fact, in some instances you can have an unfair dismissal ruling, but with no remedies awarded at all, given the conservative and complex factors that go into calculating compensation to award.
But at conciliation? You can ask for practically anything, because the outcome is entirely up to the parties involved. That might include:
A payout that reflects lost income or settlement expectations
Reversing the dismissal to be recorded as a resignation
A positive statement of service
Mutually agreed references or letters for future employers
Agreement to withdraw complaints or avoid negative publicity
Payment of unused leave, bonus entitlements, or other contractual items
Non-disparagement or confidentiality clauses
The flexibility of conciliation allows both parties to shape the resolution in a way that reflects the real-world impact — something formal hearings simply cannot provide.
Protects Your Reputation
A formal hearing can become uncomfortable for both sides. Witnesses are cross-examined, documents are scrutinised, and outcomes are published. For an employee, that can mean your performance, behaviour or even health issues are put on the public record.
Conciliation is private and confidential. No public findings. No reputational damage. No transcript that future employers or journalists can find.
That makes it a safer space — for everyone.
It’s Quicker, Cheaper, and Less Stressful
Arbitration can drag on for weeks or even months. It requires written evidence, legal submissions, attendance at a hearing, and dealing with delays. For employees already out of work, that adds stress, time, and often cost.
Conciliation is fast and efficient — usually completed in one phone call, often within weeks of filing your claim. It doesn’t require you to give formal evidence. You can have a support person or representative help you through it, and it costs nothing to participate.
You’re in Control
Importantly, you’re never forced to settle. If the employer doesn’t make a fair offer — or you’re not comfortable — you can proceed to a full hearing. Conciliation is simply your best opportunity to resolve things on your own terms, without the risks of a formal legal process.
If you’ve been dismissed, conciliation isn’t just a hoop to jump through — it’s often your best shot at achieving closure, dignity, and a result that truly reflects your situation. It lets both parties walk away without winners or losers, and with the matter resolved discreetly and respectfully.
At Workplace Justice, we’ve helped countless employees reach powerful outcomes at conciliation — saving time, stress and money. If you want to explore your options and negotiate from a position of strength, we’re here to help you get the result you deserve.
