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Unfair Dismissal

Under the Howard Government’s IR changes unfair dismissal protections have been abolished for all people working in workplaces with fewer than 100 workers.

Nearly 4 million Australians now have no protection from unfair dismissal

According to the Australian Bureau of Statistics, the abolition of unfair dismissal protections for employees in businesses with up to 100 staff would leave more than 3.761 million Australian employees without any projection from unfair dismissal.

(ABS 6306.0 May 2004)

99% of private sector firms won't need to comply with unfair dismissal laws

Businesses with up to 100 staff are exempt from unfair dismissal laws. ABS data suggests only 1.1% of private sector employers have more than 100 staff.

This means employees in more than 575,800 private sector businesses now have no unfair dismissal rights under the Government’s new IR laws.

(ABS Small Business in Australia 1321.0, 2001)

Employees in large businesses are unprotected too

The Howard Government’s IR Laws mean that workers who are made redundant or retrenched due to the 'operational requirements' of a business will not be able to claim unfair dismissal, no matter what size their workplace.

Prohibited Content

It has been made illegal for workers or their representatives to request that their workplace agreement provides a remedy for unfair dismissal.

Workers can be fined up $6000 just for asking for unfair dismissal protection, even if their employer agrees.

Unions can be fined up to $33,000 for asking on behalf of workers for protection against unfair dismissal.


Before WorkChoices         
   
Under WorkChoices    

Unfair dismissal laws that provide a remedy for employees
whose employment is terminated harshly, unjustly or unfairly.

 

Unfair dismissal protection removed for all employees in workplaces with fewer than 100 permanent or long-term casual employees.

Unfair dismissal claims will be refused where employer gives operational grounds as a part of the reason for the decision to dismiss.


Redundancy provisions in awards.


 

No longer available to employees in workplaces of fewer than 15 employees.

 
 

Provisions in some awards and agreements that provide that
employees in insecure forms of employment (casual or fixed term)
have the option to convert to permanent employment after a
fixed period.



 

Will be a non-allowable matter in awards, and will be unenforceable from March 27, 2006.


Will not form part of test underpinning agreement.

The ‘no disadvantage’ test which provides that agreements
must be tested against awards, including all components of take home pay including redundancy provisions.

 

Retrenchment pay not part of guaranteed minimum.



What happens if you are unfairly dismissed under the Howard Government’s new IR laws?

  • If you work in a business with less than 100 employees you can no longer claim for unfair dismissal.
  • You can still seek a legal remedy if your employment has  been 'unlawfully terminated.' This involves being sacked on the basis of prohibited grounds – like discrimination on the basis of race, sex, age, pregnancy or family responsibility.
  • If you believe your job might have been 'unlawfully terminated,' you can lodge an unlawful termination case in the Federal Court. Action in the Federal Court is expensive, requires legal representation, and can take up to three years to conclude.
  • The Howard Government says it will provide $4,000 in legal assistance to employees pursuing an unlawful termination claim, but this figure is based on your income, and you could expect to pay up to $40,000.

Free confidential assistance can be obtained from the ACTU's Union Helpline, for both union members and non-members: 1300 362 223.


Download a detailed 12 page booklet containing information about the new laws (PDF).

Download a PDF Factsheet about Unfair Dismissal here.

7 REAL CASES: These workers would have no remedy under new Work Choices laws dealing with unfair dismissal

Case 1 – Sales assistant sacked for querying pay

A part-time sales assistant at a jeans store was sacked after querying her pay. Her manger stated that, “your mother is querying the wages we don’t want any more problems”. She won her unfair dismissal application.

Jacqueline Sally McNicol and Westco Jeans Pty Ltd [2004] NSWIRComm 111 (21 May 2004)

Read the judgement here.


Case 2 – Book Keeper sacked for 'no reason'

A book keeper at a building company was given no reason for her dismissal. Her employer simply asked a new staff member to dismiss her. The employer had recently lost a court case against the bookkeeper's daughter that did not involve the employee. She won her unfair dismissal.

Gazyna (Grace) Jankowski v Excellent Management Services Pty Ltd [2003] (2003)

Read the judgement here.


CASE 3 – Secretary sacked for relationship

A personal assistant was dismissed because she had a relationship with a salesperson associated with the employer's company. Her employer said she had to "decide where her priorities lay." The employer asked co-workers to write fake letters of complaint about her because
that little bitch is taking us to court." She won her unfair dismissal.

Bonnie Woodward v JD Smith (2004)

Read the judgement here.

Case 4 – Sacked for missing night time training

A jewellery store employee was sacked for not going to unpaid out of hours training, despite no indication that dismissal might result from non-attendance. He won his unfair dismissal case.

Anthony James v. Frauve Pty Ltd t/a Classique Jewellers, No. B490 of 2002 (29 November 2002), QIRC

Read the judgement here.

Case 5 – Postie sacked for mistake after 31 years

A rural postal employee with 31 years service was sacked as a result of making an honest mistake that resulted in postage not paid on a transaction. He won his unfair dismissal case.

Colin James v Australia Post. PR9204004 (25 October 2002)

Read the judgement here.

Case 6 – Account clerk sacked over husband

An accounts officer at a carpet company was sacked following an argument between her husband and her manager that did not involve her. She won her unfair dismissal claim.

Heape and General George Carpets Pty Ltd [2002] NSWIRComm 146 (28 June 2002)

Read the judgement here.


Case 7 – ‘See you in a month’ young worker told

A young clerical worker was given no reason for her dismissal from her permanent position of one year, but was simply told there was no work and to come back in a month to see if the situation had changed. She won her unfair dismissal claim.

C. Iosefo v Ausres Pty Ltd (t/a Australian Reservations) PR915146 (11 March 2002)

Read the judgement here.