How To Reduce Your Exposure To Unfair Dismissals

No employer wants to face an unfair dismissal claim. You may feel that you have a contented team now - but even the best of staff relationships can break down over time.

And if it does go off the rails you cannot assume that a simple resolution will be found. It is therefore important that your recruitment process provides a robust foundation for the future employment relationship.

A number of termination problems can be avoided simply by recruiting the right person for the job, and ensuring that the terms of the employment agreement establish the company's expectations of the individual right from the outset.

It also makes sense to regularly review your staffing situation, each staff position and where there is a concern with a staff member, the original terms of their agreement. This should clearly identify the scope of the tasks that staff members were employed to perform, and the processes to follow if issues arise.

Checklist

Before you begin the recruitment process ensure that you:

Think through the job description and key performance indicators (KPIs) carefully – then commit them to writing
Determine whether a casual staff member can adequately carry out the job responsibilities and (KPIs) or whether you require a full-time or part-time employee
Determine key behavioural and technical questions to ask each candidate at the interview
Have in place a process to check all references
Have made a decision on whether to have a detailed written contract
Determine the appropriate length, if any, of a probationary period
Have developed a letter of offer

Before making an unconditional offer ensure that:

The candidate is well aware of the requirements of the job and has the technical qualifications to meet those requirements.
A full reference check has been carried out and the result is positive.
The candidate will bring the attitude required of the role and will fit comfortably as a team member.

The letter of offer to the successful candidate should be clear in respect of:

Employment position and status (full-time/part-time/casual/etc)
Salary
Other remuneration
Hours of work and expectations in relation to additional hours
Commencement date
Probationary period
Leave entitlements
Your expectations of the new employee
Obligations in relation to confidential information
The workplace responsibilities of the new employee
Termination of employment provisions including:
- the agreed period of notice,
- what constitutes a serious breach of the employment contract, and
- the consequences of such a breach

Tips

It is advisable to obtain specific professional advice in relation to the terms of engagement of employees. This article should be seen as a guide only.

It is also a sensible practice to make new staff aware of your company's policies and procedures manual which sets out clearly your company's rules and practices.

If you are not using an employment contract then your letter of offer may need to be more detailed - include key performance indicators, reporting line, training required, career path etc.

Reprinted with permission of NSW Business Chamber. For more information about this article or NSW Business Chamber, its products, services and membership, please call 13 26 96 or visit the web site: www.nswbusinesschamber.com.au
First published: 22 December 2003.
Last updated: 10 January 2006.