Unfair dismissals in Australia: does arbitration help employees?
| Published date | 01 September 2006 |
| Date | 01 September 2006 |
| Pages | 483-495 |
| DOI | https://doi.org/10.1108/01425450610683672 |
| Author | John Chelliah,Brian D'Netto |
| Subject Matter | HR & organizational behaviour |
Unfair dismissals in Australia:
does arbitration help employees?
John Chelliah
School of Management, University of Technology, Sydney, Australia, and
Brian D’Netto
International Graduate School of Business, University of South Australia,
Adelaide, Australia
Abstract
Purpose – To determine the factors associated with arbitration awards in unfair dismissal
complaints under Australian federal legislation and to assess whether employees benefit from
arbitration.
Design/methodology/approach – This research involves an empirical analysis of 342 decisions in
17 industries by arbitrators in the Australian Industrial Relations Commission over the four year
period 1997-2000. Logistic and ordinary least squares regression are used to analyse the data.
Findings – The findings of this study indicate that 50.6 per cent of arbitration decisions were in
favour of employees and only 10.8 per cent of complainants were reinstated. Independent variables
which are significantly associated with each of the three dependent variables are identified.
Research implications/limitations – The results of this study enable researchers to gain a deeper
understanding of the arbitration process and recognise independent variables that are associated with
the arbitrator’s decision in unfair dismissal cases.
Practical implications – Employers lose half the unfair dismissal cases that go to arbitration.
To reduce legal and associated costs, employers may need to look at ways of creating a more
harmonious workplace. Employees do not benefit much from arbitration and have little chance of
reclaiming their jobs. Reaching a settlement through mediation may be a better option.
Originality/value – This is the first study to assess arbitration decisions in Australia. By
developing a conceptual model based on arbitration outcomes and structuring the analysis on this
model, the paper presents a logical understanding of the factors that drive arbitration decisions and
remedies.
Keywords Dismissal, Arbitration, Australia,Employees, Industrial relations
Paper type Research paper
Introduction
In a world of rapid organisational change, the right to continuous employment has
become very precious. People build much of their lives around their jobs. Their
incomes and prospects for the future are inevitably founded on the expectation that
their jobs will continue. Thus, the consequences of dismissal are very tragic. For some
employees, it may mean breaking up a community, uprooting homes and relocating
families. Others, particularly older employees, may be faced with the greatest difficulty
of finding another job (HMSO, 1978). Given the significant adverse impact of
The current issue and full text archive of this journal is available at
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The authors are grateful to statisticians Dr Ken Matawie of University of Western Sydney and
Associate Professor Peter Petocz of Macquarie University for their advice and guidance in
relation to the statistical models used in this paper.
Unfair
dismissals in
Australia
483
Received October 2005
Revised January 2006
Accepted January 2006
Employee Relations
Vol. 28 No. 5, 2006
pp. 483-495
qEmerald Group Publishing Limited
0142-5455
DOI 10.1108/01425450610683672
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