Giving an employee the chance to respond reflects the basic tenets of procedural fairness, also alternatively known as natural justice. It acknowledges the right of individuals to be heard and ensures decisions are made based on all relevant facts rather than assumptions or incomplete information. In cases involving conduct or performance concerns, it is possible that the employer has misunderstood the situation, or that mitigating circumstances exist which should be taken into account before deciding to end employment.

The Fair Work Commission (FWC) has for a long time reinforced the importance of this step. In Crozier v Palazzo Corporation Pty Ltd t/a Noble Park Storage & Transport, the Full Bench stated, amongst other things, that procedural fairness requires that an employee be warned about unsatisfactory performance and given an opportunity to respond before dismissal (FWC, 2001).

The Fair Work Act 2009 requires the FWC to consider several factors when determining whether a dismissal was fair, including:

- Whether there was a valid reason for the dismissal (s.387(a))

- Whether the employee was notified of that reason (s.387(b))

- Whether the employee was given an opportunity to respond (s.387(c))

Failure to provide an opportunity to respond may result in a dismissal being found unfair, even where a valid reason exists. The rationale is simple: if an employee is not allowed to tell their side of the story, the decision maker cannot be confident that the decision to dismiss is justified, appropriate, or proportionate.

From a practical management perspective, allowing the employee to respond may assist in resolving misunderstandings or lead to alternative outcomes such as training, redeployment, or performance improvement plans. Ethically, it demonstrates respect for the dignity of the individual and supports a culture of transparency and fairness in the workplace. Sometimes, even after a somewhat thorough investigation, new facts can emerge from the employee in question.

Even where the outcome may still be termination, the process followed can influence whether a dismissal is considered fair. There area a myriad number of cases where employees have clearly been terminated for valid reasons but have been reinstated or compensated due to simply not being asked to give their view before the termination decision was made and communicated.