Tuesday, April 24, 2007

Sack your costly workers and save

Companies can sack a worker and readvertise the same job at lower pay under a landmark ruling that opens the way for employers to make "difficult" staff redundant for financial reasons.
Business hailed the Australian Industrial Relations Commission decision last night, declaring it had significant ramifications for the rights of employers to fire workers.

Union lawyers warned the decision "opens a Pandora's box", allowing employers to sack workers they regard as "troublemakers" and replace them with cheaper labour.

The commission has found that the company terminated an employee as a result of its financial difficulties and a subsequent decision to reorganise its structure.

It ruled that the grounds for sacking workers under Work Choices using "operational reasons" were much broader than the grounds that existed under the previous federal industrial legislation.

"The question of a 'valid reason' need not be considered, when an argument is advanced regarding the termination being for operational reasons, or for reasons that included operational reasons," the commission said.

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