With a noticeable rise in employment-related claims across Victoria, it’s more important than ever for public sector organisations to be proactive and ensure they are well-prepared in the event of an unfair dismissal claim.
Unfair dismissal claims can be a stressful situation and a sensitive area of law, with most claimants seeking to be reinstated to the roles from which they were dismissed.
Why preparation matters
The Fair Work Commission (FWC) requires organisations to respond to an unfair dismissal claim within 7 working days. This tight timeframe means you need to act immediately if a claim is made against you.
If you require assistance from VMIA and appointment of legal representation, please notify us as soon as possible. To help us progress your claim quickly, please provide all correspondence from the FWC and any key correspondence with the applicant relating to the dismissal.
Gather your facts
Remember to take clear, detailed records from the very beginning of an employment dispute. This will help our solicitors prepare a factually sound response to the FWC and attend a conciliation on your organisation’s behalf. The type of information requested by our solicitors from you (the insured) may include:
- Internal investigation documents/reports
- Show cause documentation
- Witness statements
- People & Culture guidelines and processes
- Internal policies and procedures.
Be available and transparent
Timely communication is critical. Don’t wait until the day before you’re due to respond to the FWC to get in touch with VMIA. Make yourself readily available to speak with our lawyers, and ensure you’re candid and transparent with us throughout the process. If you receive any court correspondence, let us know immediately.
Why is there a rise in unfair dismissal claims?
VMIA has seen a significant increase in unfair dismissal claims in recent years, a trend seen across all industries in Victoria. The FWC has also noted a sharp rise in its caseload, from around 30,000 matters annually before 2023, to an estimated 55,000 in 2025-26.
This is partly attributable to an increased awareness by employees and unions of worker’s rights. The use of AI by claimants has had a profound effect, with AI making it much easier for an applicant to prepare a long and detailed (although not necessarily sound) claim.1
What is an unfair dismissal claim?
An unfair dismissal claim can relate to any actual or alleged wrongful dismissal, discipline, termination of employment, denial of natural justice, breach of employment contract, failure to promote, deprivation of a career opportunity, demotion, or evaluation.
Unfair dismissal is covered under VMIA’s Directors and Officers Liability insurance if it meets the policy definition of an employment practices liability claim. VMIA would pay to, or on behalf of an insured public body, all covered losses and defence costs arising from a payable claim brought by an employee or on their behalf, against an insured officer or public body during the policy period.
How VMIA can help
Employment disputes are challenging, but you’re not alone. VMIA is here to help you navigate employment disputes.
If you have any questions or need to notify us of a claim, please contact your VMIA Risk Adviser as soon as possible.
1 Fair Work Commission lashes out at workers using AI to file incoherent and fabricated legal claims
Updated