Unfair Dismissal Limits Australia 2026-27
Every number that decides an unfair dismissal case — the unfair dismissal limits Australia applies in 2026–27: the deadline, the threshold, the cap and the fee, verified against the Fair Work Commission.
Last updated: August 2026 · Fair Work Commission (fwc.gov.au) · FY 2026–27
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How to Read This Table
Unfair dismissal eligibility is a series of gates, and each gate is a number. Miss the deadline and nothing else matters. Fall short of the minimum service and the Commission can’t hear you. Earn above the threshold without award coverage and you’re outside the jurisdiction entirely. Clear all three, and the last two numbers describe what winning looks like — the fee to get in and the cap on what comes out.
2026–27 in One Line
Apply within 21 days · Serve 6 months (12 in a small business) · Threshold $190,100
Fee $92.70 · Compensation cap 26 weeks / $95,050
Unfair Dismissal — Every Limit 2026–27
| Limit | 2026–27 | What it decides |
|---|---|---|
| Application deadline | 21 days | From when the dismissal took effect; weekends count; extensions only in exceptional circumstances |
| Minimum employment period | 6 months | Service required before you can claim; casual periods count only if regular and ongoing |
| — small business (fewer than 15) | 12 months | Longer qualifying period; the Small Business Fair Dismissal Code also applies |
| High income threshold | $190,100/yr | Earn above this with no award or agreement coverage → no unfair dismissal jurisdiction |
| Application fee | $92.70 | Payable on lodging Form F2; hardship waiver via Form F80 |
| Compensation cap | 26 weeks, max $95,050 | The lesser of 26 weeks’ pay or half the threshold; no hurt-feelings damages |
The threshold, cap and fee all index on 1 July each year (for dismissals before 1 July 2026 the threshold was $183,100 and the cap $91,550). Small business = fewer than 15 employees counting regular casuals, with associated companies counted as one employer.
Inside the limits? Two things worth doing next
→ Lodge the claim — Form F2, step by step, before the 21 days run out. → Told it was a “redundancy”? — check what a genuine one should have paid you.Understanding the Numbers
The high income threshold is the most misunderstood gate. It doesn’t bar high earners from claiming — it bars high earners without award or enterprise-agreement coverage. A $220,000 project manager covered by an award can still claim; a $195,000 manager on a common-law contract with no award cannot. Total earnings for the test means wages plus salary-sacrificed amounts and the agreed private value of things like a car — but not commissions that can’t be determined in advance, and not compulsory super.
The compensation cap shapes settlement mathematics. Because the ceiling is 26 weeks’ pay (and $95,050 at most), conciliation offers cluster well below it — a few weeks to a few months of pay is the realistic band for most settled claims, arrived at within weeks rather than the months a hearing takes. Knowing the cap keeps both your hopes and your employer’s scare tactics calibrated: nobody is winning years of salary here, and nobody credible should tell you otherwise.
Frequently Asked Questions
Which year’s threshold applies to me?
The one in force when your dismissal took effect. Dismissed on 30 June 2026: $183,100 threshold, $91,550 cap. Dismissed on 1 July 2026 or later: $190,100 and $95,050. The date of dismissal, not the date you lodge, picks the numbers.
Does super count toward the $190,100?
Compulsory employer super doesn’t count toward the threshold — the test looks at earnings: wages, salary sacrifice, and benefits with an agreed money value. That’s why a “$200k package” employee is often under the threshold once the 12% super is backed out.
Is the 21 days really that strict?
Yes. The Commission grants extensions only in exceptional circumstances, and ignorance of the deadline isn’t one. If you’re on day 19, lodge tonight with what you have — an incomplete application received in time can be fixed; a complete one received on day 22 usually can’t.
What do I actually get if I win?
Reinstatement is the primary remedy the law prefers; compensation for lost income is the practical one most people receive, capped as above. The Commission can’t award damages for distress or reputation — which is precisely why most cases settle at conciliation for a negotiated payment and a statement of service.
Also in Australia:
📋 Limits verified — Official sources: FWC — High income threshold · FWC — Compensation cap · FWC — Deadlines · FWC — Fees · FWC — Minimum employment period
⚠️ This is general information, not financial, tax or legal advice. KnowMyGovt is an independent service with no affiliation with or endorsement by the Fair Work Commission or the Australian Government, and is not responsible for decisions you make based on it.
