
There is a legal distinction between an unfair and an unlawful dismissal in Australia.
Unfair dismissal is the termination of the employment of an employee without a valid reason and which is harsh, unjust and unreasonable. It is not unlawful for an employer to dismiss an employee unfairly.
An unlawful dismissal is the termination of the employment of an employee contrary to the law, and thus is an unlawful act. An unlawful dismissal does not generally attract a criminal penalty as do many contraventions of the law. However if a dismissal is an unlawful contravention of the Fair Work Act, for example a flagrant breach of the general protections, the federal courts in theory have the power to impose a financial penalty, which may as well be called a fine.
Ordinarily however the penalty is an order that the victim receive financial compensation. I have not ever come across an employer receiving a fine or financial penalty for an unlawful dismissal other than an order to pay compensation to the victim of a contravention of the Fair Work Act involving a dismissal.
