You are asked to write a letter of demand regarding the termination of your client’s employment. The termination occurred abruptly, with the employer deciding that, because the client is gay, it was impossible that he had a genuine illness on the Monday following the Sydney Mardi Gras party. There were no previous warnings issued to your client, and he earned $90,000 a year plus superannuation. He was first hired in 2015.**
As you write the letter, reflect on the following areas:
- What was wrong about the termination?
- What options does your client have now?
- How much in terms of damages do you expect he will be able to achieve if ultimately successful in litigation?
- Will there be any other incentives for your client to litigate?
- What would your client be prepared to settle for, if it is going to get a fast result?
The correct answer and explanation is:
Letter of Demand
[Your Name]
[Your Law Firm Name]
[Your Address]
[City, State, Postcode]
[Email Address]
[Phone Number]
[Date]
[Employer’s Name]
[Employer’s Position]
[Company Name]
[Company Address]
[City, State, Postcode]
Subject: Letter of Demand – Unfair and Unlawful Termination of [Client’s Name]
Dear [Employer’s Name],
I act for [Client’s Name], who was summarily dismissed from his position at [Company Name] on [Date of Termination]. My client had been employed by your company since 2015 and earned an annual salary of $90,000 plus superannuation. His abrupt termination was unlawful and in direct violation of the Fair Work Act 2009 (Cth) and anti-discrimination laws.
It is evident that my client was dismissed due to an assumption based on his sexual orientation—that because he is gay, he could not have been genuinely ill on the Monday following the Sydney Mardi Gras party. This constitutes unlawful discrimination under section 351 of the Fair Work Act 2009 and breaches state and federal anti-discrimination laws. Additionally, there was a lack of procedural fairness, as my client was dismissed without warning, prior performance concerns, or an opportunity to respond.
Remedies and Damages
If this matter proceeds to litigation, my client will seek:
- Compensation for lost wages – estimated at $90,000 per year for up to six months ($45,000) plus superannuation.
- General damages for emotional distress and reputational harm – typically ranging between $10,000 and $30,000.
- Penalties for breaches of workplace law – which could result in additional compensation.
If resolved promptly, my client is willing to settle for six months’ salary ($45,000), superannuation, and a written apology, avoiding litigation costs and reputational harm to your company. Please respond within seven days; otherwise, we will initiate legal proceedings.
Sincerely,
[Your Name]
[Your Law Firm Name]
Explanation
The termination of employment was wrongful for multiple reasons. Firstly, it was discriminatory, violating employment and anti-discrimination laws by assuming the client’s absence was dishonest based on his sexual orientation. Secondly, the employer failed to follow fair procedures, dismissing him without warnings, performance issues, or a chance to defend himself. Thirdly, the employer’s conduct likely breaches workplace rights under the Fair Work Act 2009 (Cth).
The client has multiple options: filing a claim for unfair dismissal with the Fair Work Commission, lodging a discrimination complaint with the Australian Human Rights Commission (AHRC) or state-based agencies, or pursuing court action for damages.
If successful, the client could claim up to six months’ lost salary, emotional distress damages, and possible penalties imposed on the employer. Realistically, a settlement of $45,000 (six months’ pay), superannuation, and an apology could provide a quick resolution, as most employers prefer to avoid court costs and reputational damage.
The incentive to litigate includes potential higher compensation and public exposure of discrimination. However, litigation is time-consuming, so settlement may be preferable. The letter provides the employer with a seven-day deadline, pressuring them to resolve the matter efficiently.