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Could your business avoid an unlawful or unfair dismissal claim?

Posted by: The ADP Team on 31 May 2017 in Compliance

When it comes to managing terminations, over 70% of employers are concerned about unfair dismissal claims, according to an Australian Chamber of Commerce and Industry survey*. Are you confident that your business has met all the legislative obligations in every termination you’ve made – or are you exposed to the risk of a unlawful or unfair dismissal claim?

Click to access your copy of a guide with tips from Employment Relations Lawyer, David Bates and Payroll and Tax expert, Angela Lehman. Find out more about your legislative obligations, including Australian Taxation Office (ATO) requirements – and why starting every dismissal journey in the right place can help you finish with compliance. 

According to Business Queensland, “if you have to dismiss an employee, you need to ensure you have a valid reason.” A dismissal may be deemed unfair if it is harsh, unjust or unreasonable, or not due to a genuine redundancy. In a recent case pursued by the Fair Work Ombudman, the company’s current owner and sole director, was penalised $3000 for his involvement in contravening the adverse action provision of the Fair Work Act that makes it unlawful to dismiss an employee for exercising a workplace right.

Defending an unlawful or unfair dismissal can be a significant cost for a business, in terms of money, time and reputation. The 24-hour news cycle and social media is ready to put any business that breaks the law under the spotlight. Every last detail is picked up and shared across the world within seconds. Most organisations can struggle to recover from the negative publicity a claim creates – even impacting their ability to attract top talent for years to come.

Dismissals will always be a tough and often emotional decision. With the right guidance however you can help your business comply with the legislative obligations of terminations and reduce the risk of a unlawful or unfair dismissal claim.

*Sydney Morning Herald, ‘Most claims for wrongful dismissal unsuccessful’, May 16, 2013

Written by: Connect@ADP Team

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TAGS: Compliance legislation Payroll