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What an employer should consider before dismissing an employee

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The Fair Work legislation provides protections to employees who are dismissed in a manner that was harsh, unjust or unreasonable. The legislation also prohibits employers from treating their employees unfairly or dismissing them for a reason that is against the law (prohibited reasons). Employers should take great caution before dismissing their employees.  Failure to carry out procedural fairness or dismiss employees based on a prohibited reason may result in your employee successfully making a claim against you at the Fair Work Commission. This may not only impact your business financially but also may cause you reputational damage.

Below are some questions you may want to consider before you decide to terminate an employee’s employment.

  • Is there a valid reason for terminating the employment?
  • Has the employee been provided an opportunity to respond to the allegations against them?
  • Has the employee been provided an opportunity to improve their performance if the issue is underperformance?
  • Have the relevant company policies been adhered to in dealing with the issues relating to the termination?

These questions may prompt you take necessary and appropriate steps. However, the processes for managing employment-related problems that may lead to dismissal differ among companies subject to the size and resources of the companies.

Need assistance with employment matters, please reach out to our Workplace Relations and Legal team on (02) 6175 5900.