Workplace Relations Act - Unfair Dismissal
On 1 July 2009, the Federal Government abandoned the Workplace Relations Act and introduced the Fair Work Act (“the Act”). The Act has a number of implications for employee terminations. In this issue, we look specifically at the Act as it applies to unfair dismissals.
One of the more significant changes brought in by the Act is the removal of the previous exemption available to employers who employ less than 100 employees. Accordingly, a dismissal may now be regarding as unfair within the meaning of the Act, even in circumstances where less than 100 employees are employed.
Under the Fair Work Act, an employee dismissed from employment may now fall within the ambit of the unfair dismissal legislation if:
- They earn less than the high income threshold, which is currently $113,800 per annum or are covered by a modern award or enterprise agreement;
- If the business employs 15 people or more, the employee must have been employed for more than 6 months;
- If the business employs less than 15 people, the employee must have been employed for more than 12 months;
- The dismissal was harsh, unjust or unreasonable by reference to a number of factors described in the Act.
In addition, for businesses with less than 15 employees, the Federal Government has developed a Small Business Fair Dismissal Code setting out a number of steps to be followed in order to establish that a fair dismissal process was followed.
If you are an employee who has been dismissed, or an employer seeking to terminate the services of an employee whilst minimising the risk breaching the unfair dismissal legislation, please do not hesitate to contact our office on (03) 5941 1622.