Originating from our legal partner Archer Thompson Lawyers
Employment law is a critical area for furniture industry businesses. In particular, the issue of unfair dismissal can carry serious risks for both employers and employees. Our partner, Archer Thompson Lawyers, recently published a comprehensive guide: “Unfair Dismissal Claims: What You Should Know” which we encourage all members to review for compliance clarity. (Archer Thompson Lawyers)
What is “unfair dismissal”?
Under the Fair Work Act 2009, an employer may face an unfair dismissal claim if an employee is dismissed and the action is deemed harsh, unjust or unreasonable, is not covered by the Small Business Fair Dismissal Code and is not a genuine redundancy. Constructive dismissal (when an employee resigns because of untenable work circumstances) is also treated as a dismissal.
Key factors considered by the Fair Work Commission
Some factors the Fair Work Commission will examine in unfair dismissal matters are:
- Was there a valid reason for dismissal (e.g., misconduct, poor performance, genuine redundancy)?
- Was the employee notified of the reason and given a chance to respond? Did the employer provide warnings or performance management?
- Was a support person allowed at meetings? Were processes reasonable given the size of the employer and available HR resources?
Eligibility to make a claim (for employees)
An employee must typically meet criteria such as:
- Working for a national system employer
- Having completed the requisite period of employment (generally 6 months for businesses with 15+ employees; 12 months for smaller employers)
- Earn below the high-income threshold (or be covered by an applicable award or enterprise agreement)
- Lodging an application within 21 days of dismissal (exceptions apply in some cases).
What happens if a claim is lodged? (For employers)
If a claim is made:
- The Fair Work Commission will notify the employer. The employer should respond promptly, demonstrating valid reason and fair process (or follow the Small Business Fair Dismissal Code if applicable).
- Many disputes are resolved at conciliation. If unsuccessful, a formal hearing may follow.
- Remedies when a dismissal is found to be unfair may include reinstatement (return to job plus back-pay) or compensation (up to 26 weeks pay or the annual cap).
Why this matters to the furniture sector
Furniture retailers and suppliers may not always have large HR teams or formalised dismissal procedures. But dismissals carried out without clear reason, proper process or adequate documentation expose businesses to significant legal and financial risk. The guide from Archer Thompson reminds us: following best practice isn’t optional — it’s essential.
Action Steps for AFA Members
- Review and document your dismissal procedures, ensuring they align with the Small Business Fair Dismissal Code where relevant.
- Ensure any performance or misconduct issues are clearly communicated to employees, with opportunities for response or improvement.
- Keep accurate records of meetings, warnings and written communications.
- Conduct regular HR audits (especially if you’re a smaller furniture business) to identify and remedy gaps in process or documentation.
- Consult trusted legal advisers (such as Archer Thompson) when in doubt.
For those wishing to dive deeper, the original article by Archer Thompson can be read here.