What we did

Statistics from the Fair Work Commission in March 2015 indicate that 80% of unfair dismissal claims are being settled at conciliation, with the majority involving a pay-out.

We were keen to find out more about why so many companies were settling at conciliation, what the potential consequences of this trend are, and how employers can better protect themselves.

With this in mind, we surveyed over 2,500 senior HR professionals from a wide cross-section of industries around Australia. We presented the above research from Fair Work and asked three questions about the challenges and implications of settling at conciliation

What we found out

The survey uncovered many of the main reasons why companies settle claims, as well as many of the problems and issues that this causes for organisations.

Solving these challenges cannot be achieved with quick fixes.

Performance management changes require commitment from the top and support throughout the organisation to drive the changes, with the full understanding and ‘buy in’ of management for the necessary policy, process and procedure adjustments.

This represents a cultural ‘shift’ for some organisations that have previously treated the topic of unfair dismissal in an ad hoc, case-by-case basis.

Consideration of the wider consequences of not having a consistent and coherent policy should convince such organisations of the need to address these issues as a matter of urgency

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