Recent cases have shone light on the fact that the lack of in house HR expertise will not be an excuse when faced with employee claims. An employer that only employs two people has been ordered to pay an employee over $25,000 in compensation for unfair dismissal.

The employee has been awarded 26 weeks pay, the maximum in the unfair dismissal jurisdiction for the manner in which he was dismissed and it observed that “No human resources specialist would have recommended to the employer that they terminate the employee in the manner in which they did.”

During an argument, the employee in this matter swore at his boss, the director and part owner of the company, calling her a “backstabbing c*#”t”. The worker was dismissed for this conduct. The following day, the employee apologized by text message and received an invitation to the director’s home, where the director changed her mind and reinstated the employee.

The day following his reinstatement, upon recounting the incident to her Uncle, the businesses only customer and a shareholder in the company, the director was ordered to terminate the employee. The Director then dismissed the worker for the second time.

The Fair Work Commission stated that the absence of HR expertise affected the procedures followed by the company, but nonetheless ordered maximum compensation. The dismissal was found to be harsh, unjust and unreasonable and did not comply with the Small Business Fair Dismissal Code.

Small business employers like to think it won’t happen to them, or think that there will be some leniency since they are a small business. But even those that only employ one or two employees should seek advice before terminating. You need a quick and cost effective solution. GTAG works with small business to solve all your employee-related problems. We can help with our Complete peace of mind or Quick fix packages, to minimise risk and avoid facing additional costs. Give a GTAG Workplace Relations Specialist a call on 02 8355 5111.