50 - 10 Things You May Not Know About Unfair Dismissal

Unfair Dismissal in Australia: 10 Key Things Small Business Owners Need to Know Melissa Bush presents an episode of Business Knowhow explaining unfair dismissal under the Fair Work Act 2009 and what often surprises small business owners. She outlines the four elements of unfair dismissal (dismissal, harsh/unjust/unreasonable, compliance with the Small Business Fair Dismissal Code for small business employers, and not being a genuine redundancy) and notes possible remedies of reinstatement or compensation. The episode covers 10 key points: minimum employment periods (6 months, or 12 months for employers with fewer than 15 employees); casuals may qualify if employed regularly and systematically with a reasonable expectation of ongoing work; high earners may still claim if covered by an award or enterprise agreement (high income threshold cited as $183,100 from 1 July 2025); resignations can be constructive dismissal; a valid reason is not enough without fair process and an opportunity to respond; the Small Business Fair Dismissal Code and its Fair Work Commission checklist must be followed (including warnings for performance issues and reasonable grounds for summary dismissal for serious misconduct); redundancies must be genuine and include consultation and redeployment considerations; claims must be lodged within 21 days; reinstatement is the primary remedy, with compensation generally capped at the lesser of 26 weeks’ pay or half the high income threshold; and costs are usually each party’s own but can be ordered for unreasonable conduct or hopeless claims/defences. Two cases are discussed: Mitchell Fuller v Madison Branson (false sick leave and dishonesty found to justify dismissal consistent with the Small Business Fair Dismissal Code, claim dismissed) and Janice v Red Star Gold Coast (redundancy accepted but unfair dismissal found due to failure to conduct genuine award-required consultation). The episode emphasises that eligibility, correct process, using the code and checklist, and seeking advice before termination can reduce risk, and highlights the importance of acting quickly given the 21-day limit.

00:00 Unfair Dismissal Scenarios

01:08 Show Intro and Disclaimer

02:28 What Unfair Dismissal Means

03:22 Eligibility and Service Rules

04:07 Casuals and High Earners

05:34 Constructive Dismissal Risks

06:18 Valid Reason vs Fair Process

07:09 Small Business Code Checklist

08:43 Genuine Redundancy Requirements

09:38 Deadlines Remedies and Costs

11:33 Case Study False Sick Leave

13:50 Case Study Redundancy Consultation