Thats absolutely disgusting! I cant believe they fired her for that reason and actially told her that was the reason (usually they just make up some other reason like 'we're downsizing, dont have enough work'). Your friend should definately go through the industrial relations thingy and lodge an unlawful/unfair dismissal claim. She needs to do it within 3 or 4 weeks of being fired though (i think.. that was the rule when I got fired for no real reason).
With regard to paying her out - she isnt necessarily entitled to anything, it really depends on what her contract says, and whether she was permanent or on a fixed period contract etc etc. Its all rather complicated because of the wording in the contracts. But your friend should definately get in touch with industrial relations and get started on a claim for unfair dismissal, and call her employer to get a seperation certification and letter to say when/why she was sacked.