Letting Someone Go Early? Here’s What You Need to Know

It’s a common question: “What can I do if a new employee just isn’t working out after a few weeks?”

Forget the idea of a probation period — what really matters is the minimum employment period under the Fair Work Act 2009 (Cth).

Here’s how it works:

  • Small businesses (fewer than 15 employees): 12 months

  • All other employers: 6 months

During this period, an employee can’t make an unfair dismissal claim if you decide to end their employment.

However, you still need to take care to avoid a General Protections claim. These claims can be costly and may arise if an employee is dismissed for an unlawful reason, such as:

  • discrimination (e.g. age, sex, disability, race)

  • exercising a workplace right (e.g. asking about pay, safety or leave)

  • taking time off due to illness or injury

Practical tips:

  • Give honest feedback early — and document it.

  • If things don’t improve, provide the correct notice (usually one week for under a year’s service).

  • Keep a brief written note explaining your decision.

The bottom line:
You can lawfully terminate employment during the minimum employment period — just make sure your reason is fair, your notice period is correct, and your records are clear.

IR Support

Full Cotton Australia levy payers are entitled to a 15-minute IR consultation with Wayne Schwalbach from Employment Mediation Services (0447 935 416) to assist with workplace questions.

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