It is now under two weeks until the new Industrial Relations Laws take effect.
Small Businesses are effected by these new laws - yet recent survey's have shown that only 5% of Australian businesses are prepared for the changes!
One significant change to the laws are those concerning unfair dismissal.
The dismissal of an employee, for whatever reason, is an unpleasant thing. Regardless of the reason, the dismissed employee is likely to feel hard done by and aggrieved. It would be a very unusual employee who accepts a dismissal without some sort of hard feeling!
Many small business owners I speak to believe that because they have less than 15 employees they are not effected by the unfair dismissal provisions of the new law. While this is technically right - it does not mean that small business can not be subject to a claim for unfair dismissal.
Under the new laws, small business must follow the "Fair Dismissal Code for Small Business" when dismissing an employee to protect themselves against a claim for unfair dismissal. This does not stop an ex-employee from making a claim, but if you have followed the code then you may be protected from the ramifications.
So, the fact is that, as a small business, you can still be the subject of a unfair dismissal claim. With the associated pain of handling the claim and the unpleasantness it causes, you need to do what you can to protect yourself.
Amongst other things, It is important to ensure you have good performance management systems in place. If you have dismissed an employee for performance reasons, you need to be able to prove that you have counseled the employee and given them an opportunity to improve. If you have not done this - then an unfair dismissal claim could be proved and your hip pocket is likely to take a hit!
There are many other things you can do and many other affects that you may not be aware of. At People Smartz, we offer small businesses in the Brisbane and Coffs Harbour areas the opportunity to have a free risk assessment of their business. In that assessment, you will learn about some of the other affects the laws will have on your business - and what you can do about it!
If you live outside Brisbane or Coffs Harbour, contact us anyway. We will pass on your contact details to other members of the HR Coach Network.
To book your assessment - click below:
Free Risk Assessment of Your Staff Systems
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