June Newsletter

It might be the end of the financial year, but it is also only a week away until the commencement of one of the most significant changes in the Industrial Relations landscape. Every Australian business needs to get ready now.

Australia has been in a state of flux for the past decade when it comes to Industrial Relations. The introduction and replacement of legislation by both political parties has left business confused and indifferent. Compliance to legislation has been viewed as “nice to have” for business, but often neglected because put simply, it was just too hard to keep up. Come the end of this month, this ambiguity will be transformed into certainty. Unfair Dismissal Laws and Good Faith Bargaining start next week on July 01 2009. The focus on Managing Employee Performance in the Workplace is now critical in avoiding an unfair dismissal in your business.

The return of the unfair dismissal laws:

No doubt many of your have been reading up on the changes to legislation but it is now ready to kick into action next week.

Under the proposed laws, an employee of a small business (defined as having less than 15 employees) will be able to claim for unfair dismissal after they have been employed for at least 12 months.

Key features under Fair Work Act of the Unfair Dismissal laws include:

• New unfair dismissal laws will operate from 1 July 2009.
• New provisions require six months service from an employee before an unfair dismissal claim can be lodged, or 12 months for smaller employees (less than 15 equivalent full time staff).
• Employees will also only have 14 days to bring an unfair dismissal claim instead of the current 21 days.
• Introduction of a Small Business Fair Dismissal Code, which will operate as a defence to a claim of unfair dismissal for small employers
• Focus on quick, flexible and informal procedures with Fair Work Australia operating as an investigator and mediator, replacing the current Australian Industrial Relations Commission

Considerations for your business:

• Review your ‘hiring & firing’ policies for compliance and understanding of new laws
• Know, implement and follow Small Business Fair Dismissal Code as standard practise
• Record keeping around performance management including during probationary periods
• Understand the difference between unfair dismissal (process) and unlawful termination (discriminatory reasons)
• Understand what discrimination is and the process to be followed where discrimination is alleged to have occurred, review and update policies and procedures accordingly
• Understand what constitutes a 'genuine redundancy' as this has a specific meaning under the Fair Work Act.
  

For more information about this topic or to register for your free Business and IR Health check, please call 1300 856 930 or email business@garnersolutions.com.au