The Fair Work Act unfair dismissal provisions will commence on 1 July 2009.
The Act defines a small business employer for unfair dismissal purposes as being one who employs:
- until 1 January 2011, less than 15 full time equivalent employees; and
- after 1 January 2011, less than 15 employees by individual head count.
Employees of a small business will only be able to claim for unfair dismissal after they have been employed for at least 12 months. To dismiss someone fairly after 12 months the employer will have to comply with a Fair Dismissal Code for Small Business.
Small business employers will also be exempted from the redundancy pay obligations. For the purpose of this redundancy pay exemption, the 15-employee test (calculated on an individual head count basis) has been retained.
