Firing in the new IR age

by Mason Sier Turnbull

1300 421 046

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The recent amendments to the Workplace Relations Act 1996, commonly known as WorkChoices, provide substantial and complex considerations for employers with respect to termination of employment. While retaining unlawful termination as an avenue of redress for employees, WorkChoices prevents a substantially increased range of employees from accessing unfair dismissal. For instance, there is now no right to claim unfair dismissal for employees dismissed for "genuine operational reasons", and employees of employers who employ less than 101 employees. The extent of these exclusions has been given some clarity by recent decisions of the Australian Industrial Relations Commission (AIRC). This article outlines two recent AIRC decisions concerning the new unfair dismissal regime that have particularly significant implications for franchise systems.

In addition, franchise systems need to be aware that, in the absence of a right to claim unfair dismissal, it is likely that employees will pursue alternative avenues upon termination of their employment - for instance, claims of unlawful termination, discrimination and reasonable notice. Poor management of a termination may absorb substantial time and cost, cause an organisational culture to deteriorate, and even create adverse media attention for a franchise system. Consequently, being aware of the risks and taking appropriate precautions make sense from a financial as well as a legal perspective. Advice may be sought from a Mason Sier Turnbull . 07.09.2007

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Contact Mason Sier Turnbull

315 Ferntree Gully Road

Mount Waverley

VIC 3149

Tel: +613 8540 0287

Fax: +613 8540 0202

1300 421 046

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Firing in the new IR age

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