Some significant changes have been made to the Act to enhance access to remedies for unfair dismissal for employees, but there are also major changes that will benefit employers. The time limit within which to commence a claim for unfair dismissal has been reduced from 21 days to 7 days, meaning that employees will have to commence proceedings quickly or risk being barred from proceeding. Time limits can be extended, but there must be "exceptional circumstances".
Additionally, for "small business employers" (defined generally as an employer with fewer than 15 employees), a dismissal will be considered to be "fair" if it complies with the Small Business Fair Dismissal Code. The content of the Code is not yet known and will ultimately be the subject of regulation. Best practice will demand that all small businesses look to adopting the terms of this document once it is released.
Significantly, the "100 employee" rule of Work Choices that restricted many unfair dismissal claims has been removed. All employees are entitled to commence such a claim provided they have more than 6 months service (12 months for small businesses of 15 employees or fewer), are governed by an award or agreement or alternatively, earn less than $100,000 per annum (which will be indexed).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
