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>UnderstandingMinimumEmploymentPeriodsand Probation
TheFairWorkAct2010excludesemployeesfrombringinganapplicationforunfairdismissalwithinthe minimumemploymentperiod;mostemployersarefamiliarwiththeterm'probationperiod'andsome stillusetheterm'qualifyingperiod'.Thisnewsletterwillassistemployerstounderstandthemeaningof thesetermsandprovideguidanceandcasesillustratingthenatureoftheseprovisions. Probation Aprobationperiodisusuallyathreemonthperiod(basedoncalendarmonths)fromthedateof commencementofemploymentwheretheemployerassessesthesuitabilityoftheemployeeforthe roleandtheemployeehasanopportunitytodetermineiftherolemeetstheirneeds. Theprobationperiodmustbereasonabletakingintoaccountthenatureoftheposition.Forexample, itwouldbehardtojustifyaprobationperiodlongerthanthreemonthsforanadministrativeposition, whereasaprobationperiodofsixmonthsmaybereasonablewhereanewsalespersonisbeing employedtogainsalesinanewdistrict,oraCEOisbeingemployedtochangeanorganisation. TheminimumemploymentperiodaffectsallemploymentarrangementscoveredbytheFairWorkAct 2009andanemployeeisexcludedfrombringinganapplicationforunfairdismissalduringthisperiod. Thelengthoftheminimumemploymentperiodissixmonthsfromthedateofcommencementof employmentoriftheemployerisasmallbusiness,i.e.lessthan15employeesbyheadcountand includingassociatedentities(sees.383oftheAct),theperiodisincreasedtotwelvemonths. MinimumEmploymentPeriod JustinBartlevGBFUndergroundMiningCompany(U2006/5324)providesaclearinterpretation,and whilebasedonthepreviousWorkChoiceslegislation,neverthelessillustratestherelevantpointsin relationtominimumemploymentperiods.Thequalifyingperiodasdiscussedinthefollowingcaseis nowreferredtoastheminimumemploymentperiodintheFairWorkAct: InJustinBartlevGBFUndergroundMiningCompany,theAustralianIndustrialRelationsCommission (AIRC)consideredwhethertherewasadifferencebetweenprobationaryperiodsandqualifying periods.Inthiscase,MrBartle,whowasemployedona3monthprobationaryperiod,claimedunfair dismissalwhenhisemploymentwasterminatedwithoutnoticeafter3months.Itwasruledthatthere
CreateDate February2010 ReviewDate June2010 Author SOC No.ofpages 2 Filepath:X:\2010Directory\OERInformation Sheets\Minimumemploymentperiodsandprobation periodsaredifferent.docx

wasnojurisdictionfortheclaimsincetheWorkChoicesActstatedthatanemployeemaynotmakea claimforunfairdismissalunlessthe6monthqualifyingperiodiscomplete. TheAIRCfoundthattheExplanatoryMemorandumsupportedthatprobationaryperiodsandqualifying periodsservedifferentpurposes.Theysaidthataprobationaryperiodisbasedontheperformanceof theprobationaryemployeeandisaperiodwherebyanemployercanassesssuitabilityofemployment. Thequalifyingperiodstipulatesthelengthofanemployeesemploymentbeforetheemployeeisable tomakeanapplicationforunfairdismissal.Thatis,itsaperiodoftimetheemployeehastoserve beforetheyqualifytocommencetheseproceedings. TheAIRCsaidbecauseofthedifferentpurposesofthetwoterms,itfollowsthatthelengthofan employeesperiodofprobationdoesnotautomaticallydirectlyaffectthedefaultperiodofthe qualifyingperiodofemployment.TheAIRCwentontosaythattheActistobeinterpretedtomean thatanemployeewhoseemploymentisterminatedwhiletheyareservingaprobationaryperiodcannot makeanapplicationforunfairdismissaluntilthecompletionoftheirqualifyingperiodofemployment (i.e.standardof6months);ortheexpirationoftheirprobationaryperiod,whicheveristhelater. GuidanceforEmployers

TheFairWorkActcameintoeffectfrom1July2009andprovidesprotectionforemployeesfrom unfairdismissalwheretheyhavecompletedaminimumemploymentperiodof6monthsfromthe commencementoftheemploymentiftheemployerisnotasmallbusiness,or12monthsifthe employerisasmallbusiness. Ifanemployeeisterminatedaftertheminimumemploymentperiodbyasmallbusinessanditcan demonstratetohavefollowedtheFairDismissalCode,thedismissalwillnotbeconsideredunfair. Probationaryperiodsapplywheretheyareincludedinawrittencontractofemploymentwhich shoulddetailthebeginningandenddateoftheprobationperiod.Theyareusuallyforaperiodof3 monthsbutcanbeforlongerperiodswherenecessaryduetothetypeofposition. Itisimportanttonotethatyoucannotextendaprobationaryperiodunlessitiscontemplatedin writingatthecommencementofemployment.Ifthisconditionisnotprovidedinwritingpriorto thecommencementofemploymentandyouextendtheprobationaryperiodbeyondtheinitial term,itwillnotprovideyouwithprotectionfromunfairdismissalproceedings.(Ifisrecommended thatyouseekassistancefromtheOfficeforEmploymentRelationsifyouareconsideringtheselast twopoints). Anemployeeisexemptfromcommencingunfairdismissalproceedingsiftheiremploymentis terminatedduringtheprobationaryperiodortheminimumemploymentperiod,whicheveristhe longer.Itisimportanttoclearlyunderstandthebeginningandenddateoftheminimum employmentperiod,eventowithinamatterofhours.SeeanexplanationintherecentcaseofMr BrianPriggevManheimFowlesPtyLtd[2010]FWA28

http://www.fwa.gov.au/FWAISYS/isysquery/904c2f4417324003923f6caaa098f85e/1/doc/

EmployersinWesternAustraliashouldnotethattheWAlegislationconsidersthemannerof terminationduringtheprobationperiodandanapplicationforunfairdismissalmaybeheardbythe WAindustrialrelationsbody.EmployeeswithintheStateindustrialrelationssystemmaybeableto bringanunfairdismissalapplicationduringprobationifthedismissalisnotforavalidreason,orthe mannerofthedismissalisharsh,unjustorunreasonable. Itisimportanttonotethatalthoughanemployeemaybeexemptfromcommencingunfairdismissal proceedings,theyarenotexcludedfrommakingclaimsforunlawfultermination.Unlawful

terminationiswhereanemployeesemploymentisterminatedforaprohibitedreasoncontainedin discriminationlegislationorasaconsequenceofadverseactionundertheFairWorkActsees.342 FurtherReferences: FairWorkAct2009(Cwlth) NationalEmploymentStandards Thisnewsletterhasbeenthefirstinaseriesofemploymentrelationsenews.Ifyouhavefeedbackon thisissueoraparticularemploymentmatterthatyouwouldlikecoveredinfutureeditions,pleaseemail oer@catholic.org.au

YouhavereceivedthisnewsletterfromyourfreesubscriptiontotheOfficeforEmploymentRelationsenewsservice.Ifyounolongerwishto receivethesenewsletterspleaseemailoer@catholic.org.auwithUnsubscribeinthetitleline.Thisnewsletterisofageneralnatureonly. Specificlegaladviceshouldbesoughtratherthanrelyingonthisnewsletter.