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A First Look at Incidence and Outcomes of Unfair Dismissal Claims under Fair Work, WorkChoices and the Workplace Relations Act

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  • Paul Oslington

    (Australian Catholic University)

  • Benoit Pierre Freyens

    (University of Canberra)

Abstract

Debate over regulation of dismissals has been intense in recent years, and renewed in the lead-up to the 2012 review of the operation of the Fair Work Act. This paper reviews the economically relevant aspects of the legislative changes from the Workplace Relations Act which operated from 1993-2006, WorkChoices from 2006-2009 and the Fair Work Act from 2009 and compares the lodgment patterns and outcomes based on the data provided by Fair Work Australia on the operation of the unfair dismissal system, as required under the Fair Work Act. Our findings reinforce earlier work that showed costs imposed on business and employment are modest, but further work is required on productivity effects of dismissal regulation.

Suggested Citation

  • Paul Oslington & Benoit Pierre Freyens, 2013. "A First Look at Incidence and Outcomes of Unfair Dismissal Claims under Fair Work, WorkChoices and the Workplace Relations Act," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 16(2), pages 295-306.
    • Handle: RePEc:ozl:journl:v:16:y:2013:i:2:p:295-306
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    References listed on IDEAS

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    1. Daniel S. Hamermesh & Gerard A. Pfann, 1996. "Adjustment Costs in Factor Demand," Journal of Economic Literature, American Economic Association, vol. 34(3), pages 1264-1292, September.
    2. Benoit Freyens & Paul Oslington, 2007. "Dismissal Costs and Their Impact on Employment: Evidence from Australian Small and Medium Enterprises," The Economic Record, The Economic Society of Australia, vol. 83(260), pages 1-15, March.
    3. Benoit P. Freyens, 2011. "Dismissal Disputes and the Incentives to Bargain: Estimates of the Contract Zone," ILR Review, Cornell University, ILR School, vol. 64(3), pages 576-598, April.
    4. Benoît Pierre FREYENS, 2010. "Measuring firing costs: The case for direct methods," International Labour Review, International Labour Organization, vol. 149(3), pages 287-313, September.
    5. Paul Oslington, 2002. "Trade, Wages and Unemployment in the Presence of Hiring and Firing Costs," The Economic Record, The Economic Society of Australia, vol. 78(241), pages 195-206, June.
    6. Harding, Don, 2002. "The effect of unfair dismissal laws on small and medium sized businesses," MPRA Paper 43, University Library of Munich, Germany.
    7. Gregory, R G, 1986. "Wages Policy and Unemployment in Australia," Economica, London School of Economics and Political Science, vol. 53(210(S)), pages 53-74, Supplemen.
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    Cited by:

    1. Freyens, Benoit Pierre & Gong, Xiaodong, 2015. "Dismissal Laws in Australia: Reforms and Enforcement by Labour Courts," IZA Discussion Papers 9295, Institute of Labor Economics (IZA).
    2. Benoit Pierre Freyens & Paul Oslington, 2021. "The impact of unfair dismissal regulation: Evidence from an Australian natural experiment," LABOUR, CEIS, vol. 35(2), pages 264-290, June.
    3. Freyens, Benoit Pierre & Gong, Xiaodong, 2017. "Judicial decision making under changing legal standards: The case of dismissal arbitration," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 108-126.
    4. Paul Oslington, 2020. "What is an Australian Job Worth?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(4), pages 482-493, December.

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    More about this item

    Keywords

    Labor Turnover; Vacancies; Layoffs; Mobility; Unemployment; Public Policy; Labor Law;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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