30 September Probation completed: Can an employee claim unfair dismissal? September 30, 2016 By Reef Admin Fair Work Act, Probation, Unfair dismissal 0 Members are often confused about whether an employee is eligible to claim unfair dismissal if they are terminated following the completion of the agreed probation period. A scenario An agency has agreed with a new employee that there will be a three month probation period. After five months of service, the agency determines that the performance of the employee is not satisfactory and wishes to terminate their employment. If the employee is dismissed, are they eligible to claim unfair dismissal as they have completed the probation period prescribed in the employment agreement? Answer The Fair Work Act does not refer to a "period of probation" with respect to unfair dismissal laws. Rather the Act refers to the minimum period of employment (MEP) after which an employee may claim unfair dismissal. In the case of a business that employs 15 employees or more, the MEP is six months' continuous service. In a business with fewer than 15 employees, the MEP is 12 months' continuous service. To calculate the number of workers employed at a particular time, all employees (including casual employees) are to be counted, as well as the employee(s) being dismissed. It excludes casual employees who have not been employed on a regular and systematic basis. In this case, the employee would not be eligible to claim unfair dismissal if they are dismissed before completing the relevant MEP (six months or 12 months of continuous service with the employer as the case may be). The terms of the Fair Work Act would override the terms of the probation period provided in the employment agreement. General protection claims It should be noted that there is no MEP with respect to adverse action claims (which includes termination of employment) under the general protections provisions of the Fair Work Act. These provisions provide protection from, for example, discrimination or the exercising of workplace rights. Also, the adverse action provisions carry a reverse onus of proof. This means that where an employee alleges that adverse action has been taken for a prohibited reason or with a particular intent, the court will presume this is the case unless the employer can prove otherwise. Recruitment policy As a probation period enables an employer to determine the suitability of a new employee to a position, an employer may wish to continue to apply a probation period under this circumstance under their recruitment policy. Message for employers An agency's probation period is not relevant with respect to eligibility requirements relating to the unfair dismissal provisions of the Fair Work Act. The relevant MEP would apply in all instances. Related The difference between unfair dismissal and general protections When dealing with dismissals, it's important to understand the difference between unfair dismissal and general protections. Unfair dismissal claims against a small business If you're faced with an unfair dismissal claim, make sure you have the peace of mind of knowing you've complied with the Small Business Fair Dismissal Code. Counting down the days: Employee absence during a probation period How does an employee's absence during their probation period affect their ability to bring an unfair dismissal claim? Does it extend their probation period or Minimum Period of Employment? What's in a name? Unfair dismissal and the high-income threshold A recent Fair Work Commission case found that despite an employee earning a salary over the high-income threshold, an unfair dismissal claim could still be made. Real Estate Industry Award: Out with the old, in with the new After a long battle, the Fair Work Commission has now finalised the four-year award review and the new Real Estate Industry Award will commence on 2 April 2018. Here's what you need to know before the changes kick in. Dismissal during the Minimum Employment Period One of the most common questions our Workplace Relations Advisors are asked is whether an employer is required to give a reason for the dismissal of an employee if they’re within their Minimum Employment Period. Comments are closed.