Is the Fair Work Act a loaded gun for small business owners?

It only costs $68 to lodge an unfair dismissal claim so any employee who feels badly treated can initiate an action against their employer…..and 75% of dismissal claims result in compensation payments.

The Fair Work Act imposes so many exacting procedures that must be followed when dealing with staff that many businesses find it difficult to keep on the right side.

Performance reviews and appraisals need to be documented and carefully worded warning letters must be written to ensure the employee is fairly treated and still the employee’s perception may be that they have been discriminated against and this weighs heavily in their favour with the Fair Work Commission.

Not only is the claim expensive and time consuming for the employer, it is also disruptive to the entire business operation because it implies the employer is wrong even if they’re not.

The rules applied when a claim is lodged are complex and often the penalties severe which is why professional help should be accessed.

Frequently a decision to re-instate the employee is not a desirable outcome and compensation can be awarded up to 26 weeks of pay…a heavy burden for a small business so, beware.

Is it any wonder why an increasing number of small business owners (and even some large businesses) are shying away from employing new staff and dreading the time when they must counsel employees on poor performance in the job? Heaven forbid they ever have to terminate an employee’s services; they could easily end up in the Supreme Court.

Even if you feel you’re ‘doing the right thing’ by your employees, they’re people with unpredictable emotions and personalities and often disputes are triggered by the action of another employee. Legal fees can range from $2000 – $4000 a week.

So, how do you get the extra work done efficiently without putting on extra staff? Labour hire casuals, that’s how. You can hire in casual staff for as many or as few hours as you like…and be as flexible as you like with their hours on a week to week basis…and when the work dries up you can simply terminate the labour hire contract…just like that. No penalties, No court cases, No official enquiries.

Here at SilverTemp, we have literally dozens of mature age staff with many years of valuable experience in almost any administrative role…and they’re only seeking part-time work, a few days a week in most cases. Labour hire rates are very reasonable when everything is considered; SilverTemp pays the employee award rates, provides workcover insurance and professional indemnity insurance and pays the 9.5% superannuation guarantee. Your business only pays one invoice for the actual hours worked each week, plus GST.

If this staffing solution appeals to you, call us on 0448244111 of email info@silvertemp.com for an OBLIGATION FREE quote.

Have a nice day!  (source data:workplaceassured.com.au)

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