A couple of weeks ago I had a potential client contact me, needing some performance management support. They had 2 issues; one was easy – ‘can you help us with annual reviews?’ – ‘Yes!’ I said. The second was more complex – she had 3 employees that were either not performing or had poor and unhelpful attitudes. She really wanted to turn this situation around as it was having a significant impact on morale and productivity across the business. She was keen to resolve the performance issues to a satisfactory level or terminate but she was wary of the Unfair Dismissal legislation and understanding what she could and couldn’t do… There was another challenge too, she had a Finance Manager that was a ‘shoot first, ask questions later’ kind of guy. I let them know that he posed a risk to the business – I find the longer your company is in business and the more employees and turnover you have, an employee will eventually raise a complaint. It is a ‘numbers game’ and these days, employees are very well educated about their rights. As I have said before, all too often, the reason the employer wishes to terminate is extremely valid and easily understood but it is the way they terminate that gets them into all sorts of trouble.
It’s regularly a heat of the moment decision too – where you have just had enough – you are fed up and the employee just has to go! You don’t care how at this point, just get them out – they are ruining everything! The trouble here is that (a) there has likely been minimal attention to process or documenting the situation up to this point and (b) the employee has not been informed that their role is at risk of termination. Both of these factors can lead to Unfair Dismissal.
It occurred to me that there is still significant mystery around the Unfair Dismissal Complaints process. My main concern is that a trip to the Ombudsman costs you money and time – the reality is that it is better to not end up there in the first place. So we have developed a ‘What will a complaint with Fair Work cost me? Calculator’. This easy to use calculator can estimate the total cost for your specific business. This has been developed from significant research and practical experience. For example, you might be surprised to know that, assuming your hourly rate of pay is $100, and at conciliation the matter is resolved with no blame assigned to you, it will still cost you $1,650 and up to 12 hours of your time lost – and this is the best case scenario! If the process continues and you are found at fault costs quickly escalate. If you would like to understand the exposure you face in your business then download our calculator at a member’s only rate of $25.95 . Use our special ABN members code of ABN0614 to receive your discount.
