Small business dismissal codes govern termination and redundancy of small business; the backbone of the Australian economy, employing millions of workers across the country. Employers may need to dismiss an employee for a variety of reasons, and it is essential that they follow the correct procedures and policies. The Small Business Fair Dismissal Code is a legislative measure that ensures small businesses comply with the law when dismissing an employee. In this Legal Kitz blog post, we will explore the Small Business Fair Dismissal Code, what the Fair Work Commission says about it, and the reasons for dismissal and unfair dismissal.
What is the small business dismissal code?
The Small Business Fair Dismissal Code is a legislative measure that outlines the process for small businesses to follow when dismissing an employee. It applies to businesses with less than 15 employees, this includes casual and part-time staff. The code provides a framework that ensures small businesses comply with the law when dismissing an employee.
What does the Fair Work Commission say about dismissal code?
The Fair Work Commission is responsible for ensuring that the Small Business Fair Dismissal Code is adhered to by employers. Employers must follow the code to avoid facing unfair dismissal claims from employees. The Commission may also award remedies to an employee if they have been unfairly dismissed.
What are grounds for dismissal?
There are several reasons why an employer may choose to dismiss an employee. These reasons include:
- Poor performance: This may include failing to meet performance standards, consistently making errors, or failing to complete tasks on time.
- Misconduct: This which may include theft, fraud, harassment, or violence in the workplace.
- Redundancy: This may occur when a business is restructured or closes down.
What are reasons for unfair dismissal?
Unfair dismissal occurs when an employee is dismissed for reasons that are not valid. These reasons may include:
- Discrimination: An employee may be unfairly dismissed due to discrimination based on their race, gender, age, religion, or disability.
- Harassment: An employee may be unfairly dismissed due to harassment in the workplace, which may include bullying or sexual harassment.
- Adverse action: An employee may be unfairly dismissed due to taking action against an employer, such as making a complaint about their employment conditions.
What do you do if you’ve been unfairly dismissed?
If an employee believes they have been unfairly dismissed, they may make a claim to the Fair Work Commission. The Commission will investigate the claim and determine whether the dismissal was unfair. If the Commission determines that the dismissal was unfair, the employee may be awarded compensation or reinstatement to their previous position.
What are employee rights under the small dismissal code?
Under the Small Business Fair Dismissal Code, employees have the right to:
- Receive written notice of termination: Employers must provide written notice of termination, which may include the reason for termination and the date of termination.
- Receive payment for accrued entitlements: Employees must receive payment for any accrued entitlements, including unpaid wages, annual leave, and long service leave.
- Access to unfair dismissal remedies: Employees have the right to make a claim to the Fair Work Commission if they believe they have been unfairly dismissed.
What are employer rights under the small dismissal code?
Under the Small Business Fair Dismissal Code, employers have the right to:
- Dismiss an employee for valid reasons: Employers may dismiss an employee for valid reasons, which may include poor performance, misconduct, or redundancy.
- Follow the correct procedures: Employers must follow the correct procedures outlined in the Small Business Fair Dismissal Code when dismissing an employee.
- Defend against unfair dismissal claims: Employers have the right to defend against unfair dismissal claims made by employees
Need further legal help?
The small business dismissal code can be confusing and complex, especially for those without legal expertise. You can always contact Legal Kitz to assist you. To arrange a FREE 30-minute consultation with one of our highly experienced solicitors, contact us at [email protected] or 1300 988 954. You can also check out our sister company – Business Kitz’s Subscriptions, to access our full range of legal, commercial and employment document templates to begin your business with a solid foundation that ensures compliance.