host posted on April 17, 2009 02:33
A new, fair dismissal system will be introduced this year as part of the new workplace relations system. The
Fair Work Act 2009 establishes a new independent umpire, Fair Work Australia, to oversee the new national workplace relations system, replacing the seven existing workplace relations agencies (including the Office of Workplace Services, the Australian Fair Pay Commission and the Office of the Employment Advocate).
New dismissal laws will come into effect from 1 July 2009 and an important change for small business is that companies which employ less than 100 staff no longer have blanket exemption from unfair dismissal. Unfair dismissal is dismissal that is harsh, unjust or unreasonable. If an employee is made redundant, and the employer can show the redundancy is genuine, the dismissal will not be unfair.
From 1 July 2009, an employee of a small business with 1-14 full-time equivalent employees will need to have been employed for 12 months before they can claim unfair dismissal. They can dismiss through that time. If they can demonstrate they have complied with the fair dismissal code, which is a simple process, then the dismissal can be deemed fair.
Businesses with 15 or more full-time employees will have a six-month waiting period for employees who wish to claim for unfair dismissal. From 1 January 2011, the definition of ‘equivalent employees’ will change to a simple headcount of all employees, whether full-time, part-time or casual.
Small business owners are recommended to review policies and procedures so that management and staff are familiar with the company's terms and conditions of employment. Make sure you are not the recipient of an unfair work dismissal claim.