Terminating employment can be a difficult and emotional time for all parties.
The employment relationship can end due to resignation, redundancy or dismissal. In any case, it’s vital you go about things in the right way.
Before, during and after the process it’s important to keep in mind these general guidelines, especially if you are dismissing an employee.
Sound reasons include:
A fair process does not mean ‘three strikes’ anymore. It does mean:
For small businesses, the Small Business Fair Dismissal Code provides guidance and a checklist to follow for a fair process.
Redundancy is a separate issue with special rules, as set out by the Fair Work Ombudsman.
A guide to dismissal in New Zealand can be found here.
It’s important to keep written records of the following:
Under Australian workplace laws it’s unlawful to dismiss someone for a range of reasons that could be viewed as discriminatory.
These are set out in the General Workplace Protections for most employees.
On dismissal, the employee’s entitlements include:
In the case of redundancy, there may also be severance pay entitlements.
Some extra tips that will make the process better for all:
There are specific rules related to each type of employment termination for most employers and employees in Australia.
To find out in detail the requirements and how to avoid an unfair dismissal claim when terminating staff, visit the Fair Work Ombudsman website where you will find a range of resources, including guides, checklists and template documents.
This article was originally published on MYOB’s blog, The Pulse. For more business news and tips, visit www.myob.com/blog.
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