Worker filing complaint at Labour Department, advice needed

A staff member gave one months notice in writing, two weeks later, via text, my manager told her she could leave before the 30 days (because she was coming in late, leaving early, not really doing her job at all. The staff member did this and then went to the Labour Department claiming unfair dismissal. She is asking for less than 2 weeks back pay, however I don't want to give her anything on principal, and because it will set a precedent that could create a toxic atmosphere in the office.

There's a hearing set shortly which we are required to attend. I've been told we can postpone twice. Is this true and if so how is it done? Any other advice is much appreciated. Are there lawyers who can handle this who are relatively expensive?