Dismissal
How to protect your business from legal action after a termination
There are a number of legal options available to terminated employees. These include:
- Unfair Dismissal claim in the Fair Work Commission;
- General Protections/Adverse Action claim in the Fair Work Commission
- Discrimination claim under a state based Anti-discrimination/EEO legislation or federal Human Rights and Equal Opportunity legislation;
- Civil claim for breach of contract in the state Common Law Court;
- Civil claim for breach of the Australian Consumer Law in the state Common Law Court and Federal Court.
Checklist
Here are some key ways to protect your business:
- Understand what workplace legislation applies to you and your business.
- Develop policies and procedures to help you comply.
- Maintain well-documented employment contracts and agreements.
- Ensure disciplinary and termination processes are procedurally fair.
- Before terminating an employee, ensure your reason is valid and justifies dismissal.
- Ensure retrenchment decisions are consistent with the Genuine Redundancy provisions in the Fair Work Act 2009.
- Small Business Employers (less than 15 staff) should consult the Small Business Fair Dismissal Code before they act.
- Do not mislead or deceive prospective employees when making promises or representations about the company (eg about the longevity of prospective employment and/or the forecasted growth and financial performance of the business).
- Seek advice if you are unsure.