Definition

The Small Business Fair Dismissal Code is a set of guidelines established by the Australian government to provide small business employers and employees with clear and fair procedures for dismissing employees. 

What is the Small Business Fair Dismissal Code?

The Small Business Fair Dismissal Code is designed to assist small business employers in navigating the complex process of dismissing employees while ensuring that employees are treated fairly and reasonably. It provides a framework for handling dismissals in a lawful and transparent manner, helping to prevent disputes and legal challenges.

The Small Business Fair Dismissal Code outlines specific requirements and procedures that small businesses must follow when dismissing employees. These include:

• Providing a valid reason for dismissal: Employers must have a valid reason based on the employee’s capacity to perform the job.
• Giving the employee an opportunity to respond: Employers must give the employee a chance to respond to the reason for dismissal and consider any relevant factors before making a final decision.
• Providing notice of dismissal: Employers must give the employee written notice of the dismissal, including the reason for the dismissal and the date when the employment will end.
• Complying with minimum notice periods: Employers must provide the employee with the minimum notice period, based on the length of service.

The Australian government provides resources and support to help small business employers understand and comply with the Small Business Fair Dismissal Code. This includes guidance materials, information sessions, and access to advisory services to assist employers in navigating the dismissal process.

Example of the Small Business Fair Dismissal Code

ABC Café faces an issue with one of its kitchen staff members, Sarah. Over the past few weeks, Sarah has been consistently late for her shifts and has neglected her duties.

John, the manager, decides that a dismissal is necessary to uphold the café’s standards and maintain a productive work environment. He provides Sarah with written notice of the decision, including the reasons for dismissal and the date when her employment will end.

By following the Small Business Fair Dismissal Code, ABC Café ensures that Sarah’s dismissal is fair, transparent, and compliant with legal requirements.