Small Business Code No Defence for Unfair Dismissal

In the recent decision of Brewer -v- On the Spot Dry Cleaners, one employer learnt the hard way when it was found that they had not followed the Unfair Fair Dismissal Small Business Code. The Fair Work Commission has reminded employers that they must get the termination process right, even when using the Small Business Code, or else like on the On the Spot, they make get taken to the cleaners, and have to pay compensation.

In this case, the Employer terminated an employee after the employee was found to have taken sick leave in excess of the sick leave available to her under the National Employment Standards.

Whilst its sounds reasonable to terminate an employee for taking too much leave, the Fair Work Commission found that the employer has acted harshly because they had failed to communicate an adequate reason for termination of employment to the employee at the time she was dismissed.

The key takeaway for all employers, particularly small businesses, is that you need to make sure that you are following the Small Business Code closely. An oversight will more than likely see you facing an unfair dismissal claim, and if this decision is anything to go by, being found liable to pay compensation or even reinstatement of the former employee.

If you are concerned about your staff and how to terminate them effectively, please contact Adam Foster to discuss your options (03) 9629 9629.