Employees lose unfair dismissal rights

Larger businesses will soon be exempt from unfair dismissal claims under a new federal government plan which strips most sacked employees of their rights of redress.

Prime Minister John Howard has taken his election pledge a step further and expanded the exemption beyond small businesses with up to 20 staff.

The Australian newspaper reported that under the new rules, medium to large sized businesses with up to 100 employees - 90 per cent of employers - would no longer be subject to claims of unfair dismissal.

This removes most employees' rights to seek justice after being sacked, and relieves the Australian Industrial Relations Commission (AIRC) of half its workload determining unfair dismissals.

However, workers will still be able to make breach-of-contract claims in court under common law or claim under anti-discrimination laws.

The probation period for new employees would also increase from three to six months, giving employers more time to sack people they believe are unsuitable for the job.

Mr Howard will promote the changes to unfair dismissal as a significant incentive to hire more workers, the newspaper said.

The changes will be formally approved by cabinet this week before Mr Howard announces the full workplace reforms package.

The package is said to change the way in which minimum wages are set, water down award employment conditions, impose more restraints on unions and limit some of the AIRC's powers.

[ dismisal of rights is unfair ]