‘Small business employer’ is that me?

A: It’s important to understand whether your business is classified as a ‘small business employer’, as under the Fair Work Act 2009 there are a number of concessions around termination for small businesses. For example, there is an exemption from paying redundancy pay for small businesses who are making a position redundant (although payment of notice still applies).

In order to work out if your business falls into the small business category, you will need to work out if it has fewer than 15 employees. To calculate this, count all permanent full time and permanent part time employees and also regular and systematic casual employees that your business has at the time of the applicable termination. If your calculation equals less than 15 employees, then you are probably a small business employer.

In instances where the business has close to 15 employees, particularly where there are a number of casual employees, it is strongly recommended to seek advice from a professional to have the calculation checked prior to taking any action.

Call Industryus HR on 07 5655 4047 or click here to send us a message if you require expert advice or assistance on matters involving the termination of employees and any other matters related to HR that you may wish to discuss.

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