Understanding the Small Business Fair Dismissal Code

As a small business owner, navigating dismissal can be challenging. It is crucial that employers understand the Small Business Fair Dismissal Code before they take action on dismissals.

What is the Small Business Fair Dismissal Code?

The Code applies to small business: those with fewer 15 people (that is the number of individuals, not the full-time equivalent number). It’s a framework that seeks to balance the interests and rights of the employees and employers.

What’s in the code?

1. The 12-month rule: An employer can dismiss an employee for any reason within the first 12 months of employment
2. Timeframes: The Code outlines specific timeframes within which employers must act. For instance, if an employee believes their dismissal was unfair, they typically have 21 days to lodge a claim.
3. Protection for Employers: If an employer follows the Code, it will be protected from unfair dismissal claims.
4. Reasons for Dismissal: Under the Code, a dismissal must be based on a valid reason, such as poor performance, misconduct, or redundancy. Employers should document performance issues and follow a fair process before making a dismissal decision.
5. Fairness: Employers are required to provide employees with an opportunity to respond to any allegations before dismissal 
6. Notification: Employers must inform employees of their dismissal in writing, stating the reasons and any relevant details.

How Holt Ronan Lawyers Can Help

For Gold Coast small business employers, consulting with a solicitor can provide clarity on the Code and its implications for your business.

We can help determine if the Code applies, and work with you on compliance. In the event of an unfair dismissal application, we can represent you.

Our solicitors get to know you, and your business and when employee issues arrive, we will be well placed to guide you through the process.

Disclaimer: This advice is general in nature and is not intended to be legal advice. If you would like legal advice, please call our office on (07) 5619 0440 and we would be pleased to assist you.