What is unfair dismissal claim, and how to avoid it

Dismissing an employee can put you at risk of facing an unfair dismissal claim, no matter how careful you are.

Unfair dismissal is where you end employment harshly, unjustly or unreasonably. If the unfair dismissal claim against you is successful, you may be liable to pay a fine of up to $79,250.

Here are ten straightforward steps to avoid an unfair dismissal claim when terminating employment.

1. Have a valid reason for the dismissal: You cannot dismiss an employee simply because it is not working out or they are not performing. Instead, you must have a valid reason for your employee’s inability to safely perform their duties or their engaging in misconduct in the workplace.
2. Issue a warning to your employee: If your employee is underperforming in the workplace, you should give them a written warning. The warning should explain what you expect from your employee in their role and outline the potential consequences should your employee maintain their unsatisfactory conduct.
3. Allow your employee to respond: Once you raise an issue with your employee, you should give them an opportunity to respond and explain their actions before deciding on a disciplinary outcome.
4. Keep a written record: Maintaining a written record is essential to record your employee’s performance. By maintaining a written record, allows you to later prove that you have undertaken a proper and fair disciplinary process if need be.