An employee is eligible to make an application for unfair dismissal if they have completed the minimum employment period of:

one year—where the employer is a small business employer
six months—where the employer is not a small business employer

From 1 January 2011 the Fair Work Act defines a small business employer for unfair dismissal purposes as being one who employs less than 15 employees by individual head count (previously, less than 15 full time equivalent employees).

For a small business employer to dismiss someone fairly after 12 months the employer will have to comply with the Fair Dismissal Code for Small Business.