Posted: 14th March 2024
Posted in: Bones Blog, General HR
If you employ workers, there will come a time when you face a termination of employment situation.
It would be fair to state that terminating the employment of a worker is something no employer enjoys. But there are times when dismissing a member of your team is necessary:
All of these are reasons that might influence an employer to consider letting someone go.
If you need to dismiss a worker, you must have a valid reason, such as:
While every termination has a different set of circumstances, there are a number of preparation steps an employer should follow. These include:
The key in your preparation stage is to determine whether a termination outcome might be appropriate. Failing to have the correct reasons or evidence for termination is a surefire way to end up on the wrong end of an unfair dismissal or unlawful termination claim.
Take the time to make a smart, informed and rational decision on whether a termination is the fair and right course of action, given the circumstances.
Should you determine a dismissal may be appropriate, the following steps are typical in a termination process:
To end an employee’s employment, an employer should provide the worker written notice of their last day of employment. Some exceptions apply, such as when a notice period does not apply to an employee but as a rule, notification to a worker of anything significant relating to their employment should be provided in writing.
A dismissal should not be harsh, unjust, unreasonable or based on an unlawful or discriminatory reason. Should it be determined it is, you’re walking into a situation likely to cost you time, money and drama…and no employer wants to face a claim for unfair dismissal or unlawful termination.
Compensation for unfair dismissal is capped at 26 weeks’ wages of the annual wage of the employee and, in the case of a general protections (aka unlawful termination) remedy, compensation is uncapped. In general protections matters, the court may also make orders compensating an employee for future economic loss, hurt and humiliation, pain and suffering, and general damages.
Moral of this story? Get it right.
Whatever the circumstances, it’s important to follow the lawful rules about dismissal, notice periods and final pay.
And often, it’s smarter to find someone with genuine HR experience to help you navigate your way through the termination minefield so you tick all the boxes than trying to do everything yourself…you only get one chance to do this right.
Whether its making sure your legal grounds for termination is sound, getting your termination of employment checklist and termination of employment letter in place, understanding minimum notice periods, figuring out whether commissions are owed after termination, researching timeframes for payment of final entitlements…there’s a lot you need to consider.
And this all takes up your valuable time.
Wouldn’t it be good to be confident you have your boxes checked?
Give Bare Bones Consulting a call on 07 5576 4693 or contact us through our website. We’re an experienced HR consultancy servicing small business owners Australia wide.
We’re box checkers supreme and happy to help out with all things HR to make life a little easier for you.
Give Bare Bones Consulting a call to discuss our range of HR services to help your business succeed.
Even if you elect to not proceed after our first complimentary consultation you’ll be in a better position to know what’s possible.
We believe our approach to HR is unique... but then again, so is your business.