Approach to assessing compensation for unfair dismissal

Cases

Approach to assessing compensation for unfair dismissal

The AIRC confirmed the accepted approach to assessing what is fair compensation in unfair dismissal matters.

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The AIRC confirmed the accepted approach to assessing what is fair compensation in unfair dismissal matters. Commissioner Hingley pointed to the following steps:

  • The first step is to assess the applicant's actual loss. This involves a judgement about how long the employee would have been likely to remain in the employment but for the termination.

In this case, r egardless of what the applicant's expectations might have been, the reality of the situation was that her employment relationship was doomed by a failing business and the respondent's incapacity. The AIRC estimated that her employment could not have survived a further month.

 

No monies were earned during this period however, the applicant's attempts to mitigate her losses were supported by her ultimately gaining alternative employment. Consequently the commission made no deduction.

  •  A further step relates tos.170CH(7)(a)and the effect of the order on the employer's undertaking, establishment or service: ‘Whilst the circumstances suggest serious difficulty in the respondent's capacity to pay, I am also conscious that the applicant is also a victim. I therefore make no discounting for contingencies.’
  • Taxation deductions are required to be made on the one month's pay -

 

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Calculating compensation for unfair dismissal

Employed 5 months; awarded 6 months compensation

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