The Small Business Fair Dismissal Code was declared by the Minister for Employment on 24 June 2009 pursuant to subsection 388(1) of the Fair Work Act 2009.
An employer has the right to dismiss an employee without notice or warning if they have reasonable grounds to believe an employee’s conduct was serious in nature and justifies instant dismissal. Instance of serious misconduct includes:
In certain circumstances such as fraud or theft the dismissal needs to deemed serious enough that it warrants a report to local police. However, the ownership is on the employer to ensure they have honest and reasonable grounds and supportive evidence to make such a report.
All small businesses should have employment contracts in place to protect themselves. This includes probation periods and clearly outlining its policies and procedures. Confirming the terms of employment and detailing disciplinary rules & procedures will help to avoid disputes or confusion. All policies and rules should be equally enforced across all employees, without exception to maintain equal fairness.
It is reasonable for a small business employer to dismiss an employee without notice or warning if the employer has reasonable grounds to believe the employee was guilty of serious misconduct. However, as mentioned above this conduct needs to be serious in nature and encompass theft, fraud, violence, health and safety, or sexual harassment.