#72 How do I protect my business from an unfair dismissal claim?

How can I protect my business from an unfair dismissal claim?

In this episode, I’m going to talk about things you can do to protect your business from unfair dismissal claims.

You may be thinking that small businesses are exempt from unfair dismissal claims. But employees can still start a proceeding against you and you will need to respond to it.

You’ll be successful if you raise an objection based on jurisdiction AND if you’ve done the things that I’m talking about in this episode - write them down!

I have a great team, do I even need to?

Yes, you do. People are unpredictable. We can’t control what people do or how they feel but we can take steps to protect ourselves so that the business won’t be embroiled in an unfair dismissal claim and you won’t have to go through the stress of defending yourself.

Communication is the most important thing with your employees. The absolute highest risk scenario is where an employee is taken by surprise and reacts out of emotion. Always make sure you take the time to meet with the employees where performance is an issue and give them the opportunity to discuss their needs.

I’ll run you through how to avoid having a disgruntled employee in the first place and then how to position yourself in the best possible position to defend a claim if necessary.

TOPICS DISCUSSED AND WHERE TO FIND THEM:

[0:37]: Things can go wrong with employees and you have to let them go. They may feel disgruntled or wronged in some way and they can apply to the Fair Work Commission for Unfair Dismissal.

[1:41]: This episode is for small business owners.

[3:14]: This episode is designed to avoid having a disgruntled employee in the first place.

[3:28]: Start by downloading a copy of the Small Business Fair Dismissal Code. This will protect you legally and will position you to avoid claims in the first place.

[4:33]: Communication is key. Explain to the employee what the problem is and what they need to do better. Give them the opportunity to talk to you about it and be heard.

[6:14]: If you’ve reached a point where it isn’t the first time you’re talking about an issue, the employee needs to understand that their job is at risk.

[6:53]: The highest risk scenario is where an employee is taken by surprise.

[7:48]: Even if you’ve done everything under the Small Business Fair Dismissal Code, the employee might still make a claim for unfair dismissal, but you will have positioned yourself to be in the best possible position to defend it.

[8:54]: Make sure you have a framework established in your employment agreement with your employee that you can refer to in conversations.

[11:07]: With an unfair dismissal claim, there are only two remedies available - damages or reinstatement.

[11:39]: This doesn’t apply to redundancies. Redundancies will be discussed in the next episode.

[12:10]: In your employment agreement you will have written what constitutes serious misconduct and the employee can be dismissed on the spot.

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