Terminating or Transitioning Employees…Get it Right or Pay, Pay, Pay (Ewww not again)…

Posted on 25/05/2024 at 6:57 am

By admin

As a business owner or Manager, it is essential to understand the implications and consequences of unfair dismissal. Unfair dismissal refers to the termination of an employee’s contract of employment for reasons that are deemed to be unjust, unreasonable, unfair, or in violation of labour related legislation. This can occur for a variety of reasons.

Knowing about unfair dismissal is important for business owners and Managers because it can have serious legal and financial implications. Employees who believe they have been unfairly dismissed may take legal action against the company, resulting in costly legal fees, compensation payments, time consuming proceedings, and public damage to the company’s reputation.

By understanding the legal framework surrounding unfair dismissal, business owners and Managers can take steps to mitigate the risk of facing such claims. This includes ensuring that all employment contracts and policies are in compliance with labour laws, providing proper training for managers on how to handle disciplinary procedures, and documenting all aspects of the employment relationship to protect against potential claims.

Additionally, a business owner’s or Managers knowledge of unfair dismissal can help to create a fair and equitable work environment, fostering employee trust and loyalty. Employees are more likely to be productive and committed to their job when they feel that their rights are being protected and respected.

Understanding unfair dismissal is essential for business owners and Managers to protect from legal and financial risks, as well as to cultivate a fair, positive and productive workplace culture.

Below are a few memorable examples occurring in Australia identifying the financial risk this presents to a business if employee transition is done incorrectly.

1. Hurt v Bondi Pizza Pty Ltd [2016] FWC 2545 – $299,000 in compensation warded for unfair dismissal.

2. Li v Jetstar Airways Pty Ltd [2011] FWA 4947 – $224,440 in compensation awarded for unfair dismissal.

3. Bax v Visy Packaging Pty Ltd [2010] FWA 2320 – $186,000 in compensation awarded for unfair dismissal.

4. Odzic v Qantas Airways Ltd [2020] FWC 4170 – $174,361 in compensation awarded for unfair dismissal.

5. Barbayannis v Australis Engineering Pty Ltd [2016] FWC 6136 – $172,251 in compensation awarded for unfair dismissal.

6. Vickers v Hugh D. Harbison Pty Ltd [2015] FWC 2823 – $162,000 in compensation awarded for unfair dismissal.

7. Adamska v Harrison Manufacturing Co Pty Ltd [2016] FWC 3096 – $153,525 in compensation awarded for unfair dismissal.

8. Alessandroni v 7-Eleven Stores Pty Ltd [2015] FWC 8007 – $142,300 in compensation awarded for unfair dismissal.

9. Savva v Toyota Motor Corporation Australia Ltd [2013] FWC 7466 – $124,222 in compensation awarded for unfair dismissal.
10. Kulna v Westpac Banking Corporation [2019] FWC 9485 – $117,450 in compensation awarded for unfair dismissal.

Unsure or just want a another informed partner to offer input on an up and coming employee termination or transition then contact us NOW. HR Chief consists of registered Industrial Advocates (IAs) who can offer insightful dialogue and solutions or who can project manage employee transitions.

Paul Marshall | Partner | HR Chief | FCPHR

With decades of Business and HR experience a HR Pro, corporate trainer, author and a welcomed and trusted business partner with commercial awareness and  expertise in people, performance and HR capabilities .

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