If you have ever let someone go, you know how stressful a dismissal claim can be. Changes that took effect on 7 July 2026 under the Building Cooperative Workplaces reforms have shifted how the Fair Work Commission handles some of these disputes. Here is what small employers should know.

What changed

Based on the Fair Work Ombudsman's information and commentary from employer groups and law firms, the main points are:

  • Straight to conciliation. In general protections dismissal disputes, the Commission no longer has to first decide whether a dismissal actually happened. Previously an employer could raise that as a preliminary objection. Now the dispute can go directly to conciliation.
  • Papers instead of hearings. With the parties' consent, the Commission can decide some matters on written material rather than at a hearing.
  • Weak and repeat claims. The Commission can dismiss applications it considers frivolous or vexatious, and can require a person to get permission before filing again. Commentators note the threshold is high, so do not assume a weak claim will be thrown out quickly.
  • Timing. Commentary says the new process applies to applications lodged on or after 7 July 2026, even if the dismissal happened earlier.

What it means in practice

Early conciliation can be a quicker way to resolve a dispute, but it also means you may need to respond sooner and with less time to prepare. If you do not have your paperwork in order, you will be doing it under pressure.

What to do now

  • Keep a clear paper trail. Record performance conversations, warnings, and the reasons for any decision to end employment, at the time they happen.
  • Put contracts and policies in writing. Make sure each employee has a current contract and that you have a simple disciplinary and termination process.
  • Be consistent. Treat similar situations in a similar way, and avoid decisions that could look linked to a worker raising a complaint, asking for leave or exercising a workplace right.
  • Act on notices straight away. If you receive an application or a conciliation notice, note the dates and respond within the time given.
  • Get advice before, not after. If you are considering a dismissal, speak to an employment adviser, your industry association or the Fair Work Ombudsman first.
  • Check your final pay. Pay all wages, leave entitlements and super correctly. Underpayments can turn a simple exit into a bigger problem.

None of this changes the basics: a fair process and good records are your best protection. If you have not looked at your people paperwork this year, this week is a good time.

This article is general information only and does not take your circumstances into account. For the exact rules, check the Act and the Fair Work Ombudsman's guidance.