For the last two years, we have released many blogs posts on the unfair dismissal laws contained in the Fair Work Act.
Earlier this month, Fair Work Australia released its latest quarterly report. It contains some interesting numbers in regards to unfair dismissal claims and the Fair Dismissal Code for Small Business
With unfair dismissals, the tribunal received 3219 unfair dismissal applications in the quarter. The overwhelming majority of these (2564), were settled at or before conciliation. The tribunal made decisions on only 64 dismissal claims in the quarter, finding 24 were unfair and 40 fair. Only 18 claims resulted in a decision awarding compensation to the ex-employee.
Employees are now much more aware of their rights under the act and claims are on the rise. Many of our clients are reporting that claims made against them have been frivolous and they have settled "just to make it go away". The numbers released this month certainly seem to uphold what they are telling us!
From the numbers presented by Fair Work Australia, The Fair Dismissal Code for Small Business is not working! While 609 applications related to a small business employee, only two were rejected because the dismissal was consistent with the code.
We believe this is a worry - if followed, the code is designed to protect a small business from unfair dismissal claims. At People Smartz, our experience is telling us that, if they know about the code at all, most businesses are finding it difficult to understand - after all, it is basically a corporate process that they need to follow!
We believe that small businesses are generally finding it difficult to work with these laws and over time the issues they present are compounding. The latest set of numbers from Fair Work Australia seem to indicate this is correct!
Given the current state of Australia's workplace laws, small businesses need to ensure they have the systems in place to protect them against unfair dismissal claims. This includes having appropriate systems in place to manage poor performance and terminate staff.
At People Smartz, we are experienced in assisting our clients to put such systems in place. For many years, we have had in place a review process for small business called a "People and Business Review". This is designed to review what is in place in your business and assist you to identify the changes you need to make to protect your business. Why not book yours today?
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