Terminating an employee with mental health issues in Australia? Now that’s just heartless and inconsiderate. Sadly, most people refuse to accept that mental health exists. Some people are still unaware of it, while others refuse to acknowledge it. Almost all people have exhibited signs of mental health issues, and among these people are our employees and workers of the world.
It should already be a no-brainer to know the difficulty for an employee who struggles with a mental illness and still needs to get up for their regular 9 to 5 job. Let’s not discredit employees who also work on non-traditional working hours. People who work night shift or graveyard shift are something else!
These people persevere through their mental struggles just to make honest money, and their employers should realise that. Employees are human, too. They get tired, unmotivated, and break down even when their schedules tell them not to.
Let’s explore how terminating an employee with mental health issues in Australia can get an employer in trouble.
How Can Work Affect Your Mental Health?
Let’s admit it, we’ve all been stressed about work in more ways than one. Sometimes the causes are unforeseen, or not. Yes, stress can have a beneficial effect on an employee’s performance and resilience, but too much of it can be dangerous! Not only does it affect one’s mental health, but also their physical and behavioural health.
Let’s look at some common symptoms of work stress below:
| Physical symptoms | Psychological symptoms | Behavioural symptoms |
| 1. AgitationRisk of hypertension, heart attack, and heart disease 2. Musculoskeletal disorders 3. Gastrointestinal disorders 4. Headache, fatigue, and sleeping difficulties | 1. Burnout 2. Poor anger management 3. Anxiety, depression, and PTSD 4. Mood swings 5. Poor concentration and memory skills 6. Bad decision-making | 1. Frequent leaves, absences, or tardiness from work 2. Procrastination 3. Poor work performance or inability to meet the inherent requirements of their job 4. Avoiding social gatherings at work and at home 5. Exposing themselves to vices |
Read: Taking a Stress Leave From Work | JB Solicitors
What’s the Proper Termination Procedure?
Terminating an employee with mental health issues in Australia without a valid reason is a form of unfair dismissal. Employers with big egos or those who like to exert power tend to terminate their employees’ employment without following due process.
Unless the employee acted unprofessionally and unreasonably, only then can the employer can only take action. Regardless, the employer should have given the following entitlements under the Fair Work Act:
- A notice of termination
- Outstanding wages or other remuneration
- Accrued annual leave and long service leave entitlements
- Any earned time off for overtime that hasn’t been used yet
- Redundancy pay or entitlements (if eligible and if the employee was terminated due to redundancy)

Terminating an Employee With Mental Health Issues in Australia: Psychosocial Hazards
As we said, employees just work hard for honest money. Employees deserve a conducive space to work and a supportive environment. In fact, Work Health and Safety Australia lists psychosocial hazards that can cause stress and mental health problems:
1. Workplace Conflict: No workplace is perfect. Employees, in one way or another, will have conflicts. Personality clashes? Serious misconduct? Communication breakdowns? Unfair treatment during a disciplinary process? These are just among the problems that can cause tension between employees.
2. Harassment or Bullying: Harassment in the workplace shouldn’t be tolerated. Any employee who is harassed or is a witness to workplace harassment should immediately report it to their management.
3. Traumatic Events: Terminating an employee with mental health issues in Australia can be a traumatic event, among other situations. Let’s say that an employee won a case against an employer who terminated them because they were unfairly dismissed because of their mental illness. Years later, they have a new job but are traumatised by their past employment.
Any type of trauma, in or out of the workplace, can cause an employee to have difficulties fulfilling their daily duties.
4. Poor Workplace Conditions or Faulty Equipment: Who wants to work in a faulty computer or a dangerous workplace? It’s so hard to focus on work when you constantly fear for your safety (or the safety of your reports from an unexpected PC blue screen). Yes, it’s frustrating, and employers have the responsibility to provide proper equipment and a hazard-free workplace for their employees.
Terminating an Employee With Mental Health Issues in Australia: FAQs
| Q: I recently got diagnosed with a mental disability; how can I open this up to my employer? A: Make sure you provide a medical certificate about that states details about your mental health condition. Make sure to schedule a private talk with your employer, since it’s a serious topic to bring up. It could also help if you have a support person by your side during the talk. You can ask if you need a break, like a temporary absence or completely resign from your work. |
| Q: Who can help me with my unfair dismissal application if I’m a private or public sector employee? A: The Fair Work Act can handle an unfair dismissal claim from employees in the private sector. On the other hand, public sector employees can ask for help from the Industrial Relations Commission (IRC). Both have general protection provisions that help employees realise their rights in their work. |
| Q: Who can help me with my unfair dismissal application if I’m a private or public sector employee? A: The Fair Work Act can handle an unfair dismissal claim from employees from the private sector. On the other hand, public sector employees can ask for help from the Industrial Relations Commission (IRC). Both have general protection provisions that help employees realise their rights in their work. |
Employees Should Feel Safe Around Their Employers
Most workers are afraid that their employers will terminate them because of mental health issues. Until now, people who struggle mentally can’t simply open their struggles to anyone. They’re afraid of being labelled as “too emotional,” “weak,” or “out of control.” If you are someone who suffers from a mental disability, these labels sound all too familiar.
To discriminate against someone with their mental health illness is not right. People who struggle mentally should get all the support that they need. No, it’s not telling them to “Cheer up”, “Just stay positive”, “Some people have it worse”. The last thing a person who mentally struggles needs is another toxic positivity comment.
Remember, employees will want to rely on their employers and not think of them as people who will terminate an employee with mental health issues.
In Australia, and in most countries in the world, mental health illnesses continue to trouble employees in their workplace. The best advice we can give as lawyers is to treat mentally ill employees with the same care and attention as you would a person with a physical disability.

How Can We Help You With Your Unfair Termination Case?
If you or someone you know was fired unfairly because of their mental struggles, you can reach out to us at JB Solicitors. We believe that employees have the right to keep their jobs regardless of what mental illness they have. You are still capable, and you deserve to keep working for yourself or your family.
Let our employment lawyers help you file your unfair dismissal or termination application today. Contact us now.