The proposal to remove unfair dismissal options from those employed by businesses of less than 100 employees may well make employment by these businesses less attractive.
Here is an opportunity to put in place contracts and policies that not only provide flexibility but also show employees that you are professional and competent and will not be terminating on a whim.
It seems to have been forgotten that employers have always been able to terminate fairly. This just takes the time and discipline to follow a procedure. On top of this a three month probation period was an adequate time in most jobs to review performance initially.
Australian Workplace Agreements (AWAs) provide flexibility and having these backed by a comprehensive set of employment policies provide a fair and professional framework for conditions. Explaining these to potential employees, possibly through an employee handbook at recruitment stage, will show them they are going to be treated fairly and competently.
With these policies understood by line managers and all employees aware of their responsibilities the issues that arise (and there will always be some) can be dealt with on a consistent and fair basis and should not get to a stage where external arbitration is required. If they ever do, you should be in a good position to defend your case. We often hear of "settlements" being made of several thousands of dollars because the way issues have been handled leaves a few holes in the employer's case.
This is an excellent opportunity to start reviewing contracts and policies so you are in a position to take a strategic view of attracting and keeping talent and using the positive aspects of the IR reforms without having to resort to terminating anyone in any other way but fairly.
Finding and keeping good employees has always been more of a challenge than getting rid of poor ones: the combination of a looming labour shortage and new IR reforms may make this more challenging and will require you to take action now.
