The Code provides small business employers with a simplified framework for fair dismissal.
Legislation: Fair Work Act 2009 s388 | Category: Termination
What is Small Business Fair Dismissal Code?
The Small Business Fair Dismissal Code provides small business employers (fewer than 15 employees at the time of dismissal) with a simplified framework for fair dismissal. If a small business employer follows the Code, the dismissal will be considered fair even if the Fair Work Commission might otherwise have found it harsh, unjust, or unreasonable.
The Code covers summary dismissal for serious misconduct and other dismissal situations. For non-summary dismissals, it requires warning the employee that their job is at risk, giving them an opportunity to improve, and (other than for small businesses with fewer than 15 employees) providing the employee with an opportunity to respond to allegations.
Key Compliance Points for Employers
- The Code applies to employers with fewer than 15 employees at the time of dismissal
- A Fair Dismissal Code Checklist is available from the Fair Work Ombudsman
- Serious misconduct still requires giving the employee an opportunity to respond before dismissal
- Using the Code is a complete defence to unfair dismissal if followed correctly
- The Code does not protect against general protections claims
Frequently Asked Questions
What is Small Business Fair Dismissal Code?
The Code provides small business employers with a simplified framework for fair dismissal.
Why is Small Business Fair Dismissal Code important for employers?
Understanding small business fair dismissal code helps employers comply with Australian employment law, avoid penalties, and maintain fair workplace practices.
