Employment disputes are more common in Australian workplaces than many think, reflecting the complex interplay of rights, obligations, and relationships between employers and employees. Recent data indicates that industrial disputes remain a significant feature of Australia’s employment landscape, with 69 disputes recorded in the December 2024 quarter alone, involving 25,200 employees and resulting in 53,800 lost working days [1].
This article examines key examples of employment disputes in Australia, analysing their nature, resolution processes, and implications for workplace relations.
Unfair Dismissal Disputes
Unfair dismissal claims represent one of Australia’s most common categories of employment disputes. These disputes arise when an employee believes they have been terminated from their employment without a valid reason or through an unfair process.
Valid Reason and Procedural Fairness
Fair Workplace Solutions represented an employee who was unfairly dismissed from her employment. The Employer terminated her employment over the phone and via text, but subsequently pretended that the termination did not occur in the days following. The reasons for dismissal changed on a daily basis, leading the Fair Work Commission to conclude that the Employer did not have valid reason to dismiss and they did not engage in a procedurally fair process. (2023fwc2420.pdf)
Most of the time, unfair dismissal claims are settled at the Fair Work Commission at a conciliation where the decision is not published. Particularly for employers, the main aim of Fair Workplace Solutions is to ensure that your business’s reputation is not damaged by having an unfair dismissal claim attached to the business name.
Types of General Protections Claims
The second most popular dispute is a General Protections Claim. Where an employee is dismissed from their employment (or experienced other prejudice in the workplace) due to a protected reason.
Raising Workplace Rights
Fair Workplace Solutions represented a client in a general protections matter where the employee negotiated flexible working arrangements and negotiated his remuneration. He was subsequently dismissed for this reason. 2025fwc287.pdf
Sham Contracting
Fair Workplace Solutions represented a contractor who claimed that they were an employee. In this case, the contractor had an ABN, gave invoices, paid their own tax and superannuation. However, due to the poorly worded agreement between the contractor and the principal, the Fair Work Commission decided that the contractor was an employee.
In the same manner as unfair dismissal claims, the main aim for general protections claims is to ensure that the matter is settled before any decision is published connecting the business name to a claim. However, this is not always the goal for each client. We will cater our advice and strategies to meet our client’s goals.
Wage and Entitlement Disputes
Disputes over pay and entitlements are increasingly prominent in Australia’s employment landscape, with severe penalties now being imposed for non-compliance.
Major Underpayment Cases
One of the most significant recent cases is Fair Work Ombudsman v Sushi Bay Pty Ltd (No 3) [2024], where a sushi chain corporate group was ordered to pay $13.7 million in penalties for underpaying 163 employees over several years. The director and CEO were personally ordered to pay $1.6 million for her involvement in contraventions, including failing to pay minimum award rates, not providing annual leave entitlements, requiring employees to repay money, and providing false information to authorities [4]. This case demonstrates regulators’ increasingly serious approach toward wage theft, with criminal penalties set to be introduced from January 2025.
Everyday Pay Disputes
Not all wage disputes involve large-scale underpayment. In a case study highlighted by the Fair Work Ombudsman, a café worker named Jamila believed there was a problem with her pay and attempted to discuss it with her manager. The manager dismissed her concerns without proper explanation, leading to employee frustration, reduced performance, and eventually contact with the Fair Work Ombudsman. While the employee’s pay was ultimately determined to be correct, the dispute could have been avoided through better communication and explanation of how the pay rate was determined [5] . This example illustrates how even minor pay disputes can impact workplace relationships and productivity.
Workplace Bullying Claims
Workplace bullying represents another significant category of employment disputes in Australia, with various avenues for redress available to affected employees.
Manager-Subordinate Bullying
In Darren Lacey and Chris Kandelaars v. Murrays Australia Pty Limited; Andrew Cullen [2017], two bus drivers claimed bullying by their manager, which included unjustified threats of disciplinary action, repeated correction of minor mistakes, and humiliation in front of colleagues. While the Fair Work Commission found the bullying claims proven, it determined not to issue stop-bullying orders because the employer had already taken steps to reduce the risk of further problems by removing the manager to another role [3]. This case demonstrates that the FWC’s primary focus in bullying matters is preventing future bullying rather than punishing past behaviour.
Workplace Discrimination
The Australian Human Rights Commission provides a compelling case study of workplace discrimination. In one documented case, a Serbian van driver employed by an Australian Government statutory authority faced racial discrimination when his supervisor allegedly made offensive comments such as, “He is a Serb and Serbs make ethnic cleansing, He might kill you.” The employee claimed the organisation was slow to investigate his internal complaint and that he experienced victimisation for raising the issue.
This case was ultimately resolved through conciliation, with the company transferring the employee to a position where he no longer had contact with the offending supervisor, while also acknowledging the distress he had suffered [8].
Disputes Involving Workplace Rights
The protection of workplace rights is a fundamental aspect of Australia’s employment law framework, with disputes often arising when these rights are infringed.
Maternity Leave Return Rights
In a case detailed in the Labour and Employment Disputes Review, an employer was found to have breached Section 84 of the Fair Work Act (the employee’s right to return to her position after maternity leave) and Section 340 (taking adverse action against her because she had exercised her workplace right to take maternity leave). The court determined that these breaches occurred because senior managers acted with undue haste and failed to involve the HR department in the redundancy process [3]. This case highlights the importance of proper process when making decisions affecting employees with protected workplace rights.
Non-compete and Client Solicitation
In AEI Insurance Group Pty Ltd v Martin (No 4) [2024], the Federal Court ordered a former account manager to pay $500,000 in damages to his former employer after luring 45 clients to a rival [4]. While not a traditional employment dispute, this case demonstrates the significant financial consequences that can arise from breaches of post-employment obligations, which are increasingly becoming a source of litigation in Australia.
Industrial Action and Collective Disputes
Beyond individual employment disputes, collective industrial action remains a feature of Australia’s employment relations landscape, though at historically lower levels than previous decades.
Strike Activity Trends
According to the Australian Bureau of Statistics, the December quarter 2024 saw 69 disputes (strikes or lockouts), involving 25,200 employees and resulting in 53,800 working days lost across eight industries and eight states and territories. During the year ended December 2024, there were 194 disputes with a total of 139,100 working days lost. While significant, these numbers represent a substantial decline from the levels of industrial disputation seen in the 1980s and prior decades [6].
Sources:
[2] https://legalfinda.com.au/
[3] [2017] FWC 3136
[5] https://www.fairwork.gov.au/
[6] https://www.abs.gov.au/statistics/
[7] https://immi.homeaffairs.gov.au/
[8] https://humanrights.gov.au/our-work/voices-australia-case-study-2-rightsed
