Last year there were over 13,000 claims for Unfair Dismissal.   I don't know how many had a sound basis, but I'd guess many were settled to avoid the work, worry, and ongoing cost.   (I've also read the 'average payout' is around $6,000).

If you are sent a copy of an unfair dismissal application by the Fair Work Commission you have seven days to respond, using a Form F3.

One of the first questions on the F3 asks if "… you have any jurisdictional or other objections to the application".   At its simplest, the employer is being asked whether they consider if the employee has a legal entitlement to pursue a claim.

There are a number of requirements that must be met before an employee becomes entitled, and so the employer now has the opportunity to challenge the claim's legal validity.   There are seven grounds of objection.

1. Was the claim lodged out of time?

The claim must be filed within 21 days of the dismissal taking effect, unless the employee can prove there were exceptional circumstances justifying an extension.

2. Was the applicant an employee?

Only employees are protected, not contractors.

3. Was the applicant actually dismissed?

The employee must have been dismissed at the employer's initiative, so a resignation cannot be grounds for a claim.

4. Was there a 'genuine redundancy'?

The Fair Work Act sets out the terms of 'genuineness', and if so, is not an unfair dismissal.

5. Was the minimum employment period met?

An unfair dismissal claim cannot be lodged against a small business (one with fewer than 15 employees) unless the employee was employed for at least 12 months.   If the business has 15 employees or more, the employee must have been employed for at least 6 months.

6. Was the applicant paid more than the High Income Threshold of $145,400?

Their income must fall below this level, which excludes superannuation.

7. Was the termination consistent with the Small Business Fair Dismissal Code?

If the procedures for dismissal as set out in the Code are followed, the claim is quite easily defended.

The Small Business Fair Dismissal Code came into operation in 2009, but based on the number of claims, it would seem very few employers (and perhaps also employees) have actually read it.   Because the items in the Code are an important part of Fair Work's evaluation of the employer's assertion that there is no legal entitlement for a claim.   Please contact us for a copy of the Code and Checklist , which ideally should be completed at the time of dismissal and filed away.   It records the reasons for dismissing an employee.

Understanding the seven key grounds for objection to an unfair dismissal claim can save employers a considerable amount of worry, time, and money!