Reference no: EM13382644

Question:

‘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:

1. Do the unfair dismissal rules apply to his firm? He heard something about small businesses being exempt, but does this apply?

2. Is he liable for the unfair dismissal and what would be his liability if Crusty's application were successful?

3. What approach should he take if he wants to settle with Crusty?