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Lismore Lawyers business law faq's

How do I dismiss employees?

June, 2008

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The employment relationship is contractual in nature and can be terminated in the usual ways.  Generally, the employer or employee must give notice of termination.  If the period of notice is not defined in the contract of employment, it must be imputed from the circumstances.  For example, where wages are on a weekly basis, reasonable notice would be one week.  This is, of course, subject to any special legislation or industrial awards.  The death of either party, and in some cases, physical incapacity of the employee, will terminate a contract.  The bankruptcy of either party does not automatically terminate the contract of employment.

The employer can terminate the contract without notice where the employee acts in such a way as to be in actual or anticipatory breach of a condition of the contract, or the employee is neglectful or incompetent.

Industrial legislation in most jurisdictions allows an employee to seek reinstatement or damages for unfair dismissal.

The Workplace Relations Act (Cth) deals with unfair dismissals.  Where an employee who is within the jurisdiction of the Act is dismissed and considers that the dismissal was harsh, unjust or unreasonable, the employee can apply to the Australian Industrial Relations Commission to resolve the claim.  The Act also sets out a number of discriminatory grounds upon which it is unlawful to terminate employment.  These are:

  • temporary absence from work due to sickness or injury;
  • membership or non-membership in a union;
  • acting as an employee’s representative;
  • involvement in proceedings against an employer regarding a breach of law;
  • race, colour, sexual preference, age, physical or mental ability, marital status, family responsibilities, pregnancy, religion, politics, nationality or social background; or
  • refusal to sign or negotiate an Australian Workplace Agreement.

The Act also provides rights for independent contractors to apply for variation or setting aside of harsh and unreasonable contracts for services.

There are comparable provisions under state legislation.

The General Employee Entitlements and Redundancy Scheme (GEERS) protects the interests of employees who who were terminated from their jobs on or after 12 September 2001 as a result of their employee becoming bankrupt or insolvent. This replaces the Employer Entitlements Support Scheme, that protected the interests of employees where an employer was declared insolvent between 1 January 2000 and 11 September 2001.

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