Just Loafin’ Around’ is a chain of three bakeries in Melbourne. It is a private company 100% owned...

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Just Loafin’ Around’ is a chain of three bakeries in Melbourne. It is a private company 100% owned by Robert Croissant, who is also the manager of one of the stores. The business employs 4 apprentices, 6 bakers and 3 part-time administrative staff doing clerical work and payroll. It also has a pool of 5 casual employees who help out reasonably regularly when others are sick or during busy periods.
One of the people who works in the Melbourne payroll department is Robert Croissant's teenage daughter.
The store that Robert Croissant manages has two apprentices and two bakers. One of the apprentices, Bob ‘Choc’ Scone, is in his third year. The other, Crusty Bun, is in his first year and has eight months of service. Throughout the year there has been tension between the two, although nothing which has warranted any formal action or even a verbal caution.
During the weekend, Robert discovered both boys had been seeing his teenage daughter. He found out that this was the reason for the tension. This made Robert very angry.
Yesterday, Robert came into the store and in a fit of rage instantly sacked both apprentices without notice. He paid out their entitlements and dismissed them immediately.
Robert is a proud and traditional man. He could not stand the thought of working with two boys who had 'been with' his daughter. He felt he had no option but to dismiss them - besides, he thinks that there shouldn't be any of ‘that stuff’ in the workplace. While he doesn't have a formal sexual harassment policy, it is his opinion that fraternizing between staff is always a bad thing.
Robert has heard that Crusty may challenge his dismissal. The last thing he could afford is a big payout for unfair dismissal, especially since he will need two more apprentices to replace the ones he has lost. Despite this, having any of the employees back in the workplace would be equally as bad, in Robert’s opinion.
Mr Croissant wants to know:

Do the unfair dismissal rules apply to his firm? He heard something about small businesses being exempt, but does this apply?
Is he liable for the unfair dismissal and what would be his liability if Crusty’s application were successful?
What approach should he take if he wants to settle with Crusty?

005_jk-ak20dv4o.docx

Robert · Accepted Answer

1. Do the unfair dismissal rules apply to his firm? He heard something about small businesses 
being exempt, but does this apply?  
Ans:- 1 Yes the unfair dismissal rules apply to this firm a person can make claim against the 
employer who is having work place right (Fair Work Act, Division 3). This is applicable to 
all the employees who is having workplace rights the only thing that has to understand is that 
when a person is applicable to apply for adverse claims and what are the work place right that 
an employee’s enjoys. (Fair Work Act, Part3-1). 
Now, let’s analyse whether the above rule is applicable to the following firm or not. After 
careful analysis of the situation, it is clear that the Crusty may go for adverse claims because 
of the following reason:- 
1) No written or complaint has been made against Crusty or Bob by his daughter. Robert 
has taken this decision just on the basis of his understanding. Without any formal 
complaint such action can be seen as breach of Fair work act right. (Fair Work Act 
Right, Section 361) 
2) Though there is tension between the two but it never hampers the smooth running of 
the stores. Hence, in no way the Robert can dismiss them under the breach of 
discrimination or because of following unlawful activity. 
3) There are no rules or law made by Robert against Sexual harassment which he might 
applied on two before dismissing them. 
4) Both Employers are working under him more than a year. During these two years no 
formal complaint has been made against them. So good record also make the 
applicability of the unfair dismissal law for this organisation. 
5) No notice or nothing in written has been given to both which is totally unfair as 
reason muct be given before dismissing anybody. (Fair Work Act, Section 361).
Hence, from the analysis of the above region it is clear that unfair dismissal rules is 
applicable to its  firm as all employees has work place right and they can claim 
adverse action claims in the following situation(Fair Work Act, Section 342):-
1) If an employee unfairly dismisses an employee. The above situation only reasons 
towards the same. 
2) Injures the employee in his tenure. 
3) Alters the position of the employee as per employer’s prejudice 
4) Discriminates between two employees. 
Hence, from the case it is clear that rules 1 is clearly applicable to the case. 
2.

Just Loafin’ Around’ is a chain of three bakeries in Melbourne. It is a private company 100% owned by Robert Croissant, who is also the manager of one of the stores. The business employs 4...

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