End of Employment Law in Australia

Posted by John J.
5
Oct 28, 2022
275 Views

Australia has a robust employment law. The employees and employers must follow the provisions by heart to avoid hefty fines. The fair work commission was established to address the rights of employees and employers so that Sudan layoffs can be avoidable. 

In the article, we will discuss the laws regarding the end of employment in Australia. 


Termination of Employment

Termination of employment is when an employer ends occupation for their employee. There can be different reasons for the end of the job. For example, the worker may resign, or the employer can dismiss the employee.


It is important to note that there are necessary rules and regulations for terminating employment. These laws are governed by the Fair Work Act 2009, specifically designed to uphold the rights of employees. 

It is crucial to follow the procedures for dismissal. You may be subject to a hefty fine if you don't follow certain rights and obligations. For example, there are also different legal codes when a job is redundant or a company goes broke.  

Employment Lawyers

There are specific workplace laws for terminating employment. The main framework for terminating employees is to understand whether the termination of the job was unlawful or unfair. For example, is any money the worker owes to the owner? And what can be done if the employee is dismissed due to redundancy or the company goes bankrupt? 


Fair Work Commission


The Fair Work Commission is an independent Australian tribunal body that works to regulate and enforce provisions relating to minimum wages. They also follow the workplace condition, employment condition, enterprise bargaining, dispute resolution and termination of employment. 


What is meant by unfair and unlawful dismissal?


Unfair dismissals are those when someone is removed from their job in a harsh, unjust or unresponsive manner.


There are specific parameters for the fair work commission to deem "unfair" to end the employment, such as:


  • The employee was dismissed for unknown reasons

  • The dismissal was harsh, unjust and unreasonable

  • The release was not due to redundancy

  • The employee worked for a small business, and the dismissal was not according to the small business fair dismissal code.


What is harsh, unjust and unreasonable dismissal?


The commission decides whether the dismissal is harsh, unjust, or unreasonable by considering the following circumstances:


  • There was a valid reason for the release due to the worker's capacity or conduct.

  • The employee is given a reasonable opportunity to respond to the incapacity.

  • If the worker wasn't given a reasonable opportunity to respond to the dismissal.

  • The worker has been notified if their performance was unsatisfactory.

  • Or other relevant matters for the fair work commission



The employer may pay a $66,000 fine for harsh, unjust, and unreasonable dismissal per breach of the obligation.


Redundancy


Redundancy occurs when employment ends due to the employer's incapacity, or the job is no longer needed for the company to continue. Any employee who worked in the company for at least one continuous year will be entitled to get a maximum pay of 16 weeks under the national employment standards. 


Redundancy can happen for any business when the business undergoes the following changes:


  • Introduces new technology where a machine can do the job.

  • Company going bankrupt

  • Slow down sales or production

  • Relocate interstate or oversees production

  • Reconstruction or reorganisation due to change of management or takeover

  • And similar circumstances.


Upon such layoffs, the workers are entitled to get paid for redundancy.


Laws regarding notice of termination


Summary Dismissal

There are specific laws and regulations regarding the notice of termination. If an employee is found to have serious misconduct like theft, fraud, violence or breach of occupational health and safety procedures, they can be dismissed without any legal notice. It is necessary but not essential to report the inconvenience to the police. 


Other dismissals

Any business employer must explain why the employee is at risk of being dismissed. There must be a valid reason based on the employee's capacity or code of conduct. The employee should be given written or verbal work if they are at risk of being dismissed or if there is room for improvement. 

Final Vardict

The end of employment is not happy for an employee who requires that amount for his family. However, Australia has a robust law for the business sector. In 2009, the Government formed a fair work commission to uphold the rights of employers and employees. The commission has the authority to implement summary fines. 


If you have any queries regarding ending employment, you can always get help from professionals like Michael Vessisli. They have the best team of preferential lawyers with decades of experience upholding clients' rights.  


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