False unfair dismissal cases harming industry, says MEA

Master Electricians Australia (MEA) has called for a fresh review of unfair dismissal laws in the wake of official government statistics showing that only 6% of all claims are found to be genuine.

MEA Workplace Relations Manager Jason O’Dwyer said the unfair dismissal laws were clearly still being abused, leading to expensive and unnecessary legal action for business owners.

“These laws are an active disincentive to job creation, and these Fair Work Australia statistics prove this once again,” O’Dwyer said.

Figures released recently by Fair Work Australia found that four out of five cases were finalised in the employer’s favour, with applications either withdrawn or claims rejected.

“Of the successful claims, 70% of people are awarded less than four weeks’ pay - the standard notice period for termination of employment. This indicates that the commission does not view these cases as genuine unfair dismissals or it would have ordered reinstatement or a more significant payout.

“That means only 30% of those cases can be considered a genuine finding of unfair dismissal. And remembering that only 20% of cases make it this far, this represents just 6% of the total number of cases brought before the commission.”

O’Dwyer said the figures demonstrate the “abuse of a system” that was designed for employee protection but is now used as a bargaining tool. Businesses often offer a modest payout to avoid the time and expense of challenging a case, O’Dwyer said.

“On behalf of small businesses and contractors, Master Electricians calls on both the government and the opposition to review these heavy-handed laws and to enact new avenues for conciliation which will reduce the cost to business of defending itself in the face of spurious unfair dismissal claims,” said O’Dwyer.

“One of the most common pieces of feedback we receive from members is that the unfair dismissals system is deterring them from hiring more staff. These laws are a disincentive to employment, and any political party that really cares about jobs and the economy must move to fix them quickly.”