Unfair Dismissal Increase

from Aussie Painting Contractor June 2020

5 Worst Nightmares for a Trade Business Owner

Unfair Dismissal INCREASES

There’s no doubt COVID-19 has had a significant impact on Australian employment figures and now we’re seeing an increase in unfair dismissal applications being lodged.

The increase in applications can be attributed to three primary reasons:

The first one is purely a numbers game. The sudden and resounding impact of COVID-19 on businesses saw a greater number of employees being terminated or being made redundant all at one time. More people losing their employment, means more unfair dismissal applications.

People are scared. You cannot go a day without hearing that the unemployment figures are skyrocketing, businesses are going out of business, we’re facing the worst economic disaster we’ve seen since the Great Depression etc. All of these play into people’s minds and feeds their fear that they may not get another job. They have families to feed and bills to pay, so they lodge an unfair dismissal application in the hope they’ll get reinstated or will at least receive a few more weeks payment to help tide them over.

Employers are / were scared too and felt like they had to make a quick decision for the viability of their business. When we’re rush, scared or panicked, we make mistakes. In the heady moments of the first few weeks of COVID-19, many businesses acted too quickly and didn’t follow proper processes when terminating their employees. How you terminate your employees is closely scrutinised by the Fair Work Commission in determining whether a termination was unfair, harsh or unjust How can you protect yourself against an unfair dismissal claim? The short answer is you can’t. It is very easy for an employee to make an unfair dismissal application and cheap, only $73.20. So, what have they got to lose?

The important thing then is not so much to avoid an unfair dismissal claim but proceed as if you are preparing for one. If you enact all terminations as if they will be scrutinised by the Commission, then you are in a much better place then if you don’t.

The key points when enacting a termination are:

Could the termination be considered to be harsh, unjust or unfair? Have I consulted with the employee, explained the issues or concerns and provided them with an opportunity to respond and / or improve? Have I considered all relevant factors including seriousness of the issue, ability of the employee to improve, length of service, previous work history, age, ability of the employee to get another job, mitigating circumstances? Have I given these and the employees responses due and genuine consideration? Have I followed due process?

Enacting a termination can be difficult, but you don’t need to go it alone. At HR Maximised, we’re happy to discuss your concerns and help guide you through the termination process.