Terminating employees comes with high risks
The Federal Circuit Court has fined an HR Manager personally
more than $1,000 for providing insufficient notice when dismissing
an injured employee.
In Cerin v ACI Operations & Ors (14 October 2015),
the HR manager admitted in evidence that she was aware of the
relevant Legislation and was also aware that the Act had provisions
dealing with minimum employment requirements, including notice. The
HR manager had the authority to determine how much notice a person
was given. Accordingly she was fined as an individual.
The company was also required to pay penalties $20,400 for
breaches of the Fair Work Act.
It is recommended that you seek advice before terminating
employees. There are many aspects to terminating an employee,
including making sure the proper processes are followed, the
correct notice is given, and the appropriate entitlements paid. In
the case above, the amount the employee missed out on was only
$188.66,