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“I Thought I Did Everything Right”: A Small Business Owner’s Wake-Up Call About Fair Dismissal

Navigating Employee Disputes in the Fitness Industry with SBAAS by Your Side

Running a small business isn’t just about balance sheets and marketing plans—it’s deeply personal. It’s about showing up every day for your team, clients, and community. And when you’re faced with legal claims that question your integrity, it can feel like the ground’s been pulled out from under you.

At SBAAS, we recently supported a small business owner in the fitness industry who faced one of these daunting challenges: an unfair dismissal application. The situation was complex, emotional, and—above all—a powerful reminder of why following the right process matters.

 

A Commitment to Fairness, Misunderstood

This small business had a close-knit team and a strong workplace culture. When economic conditions shifted and enrolments dropped significantly, the owner was forced to rethink the structure of some roles. Rather than making rash decisions, the employer engaged transparently with staff, outlining the business challenges and proposing changes that would preserve employment wherever possible.

Throughout this period, the employer paid above the minimum required under the Fitness Industry Award, even while the business was under financial pressure. The intention was always to act fairly and to sustain jobs, even if that meant stretching thin.

When one team member chose not to continue with the revised arrangement, despite multiple invitations to do so and ongoing inclusion in the roster, the business owner was surprised to receive a formal unfair dismissal claim.

 

What Actually Happened

In truth, there was no dismissal. The team member had been given every opportunity to remain in the business. Multiple formal proposals were extended, clearly outlining adjusted terms, ongoing responsibilities, and an opportunity to remain part of the team. The employer even delayed implementing changes, hoping the staff member would reconsider.

Instead, the individual chose to cease attending shifts and later submitted a resignation. Still, the unfair dismissal claim was lodged. For a small business owner already managing declining revenue, increasing administrative complexity, and emotional stress, this was a crushing blow.

The Role of the Small Business Fair Dismissal Code

This is where the Small Business Fair Dismissal Code becomes crucial. The Code is designed to give small employers (those with fewer than 15 employees) a clear, fair, and lawful framework for managing difficult staffing situations.

In this case, every requirement of the Code was met, including:

  • Valid business reasons for changes in employment conditions
  • Clear and transparent communication about those changes
  • Opportunity for the employee to respond, seek support or representation
  • Consideration of redeployment to alternative roles within the business

This wasn’t just a box-ticking exercise—it was a genuine attempt to preserve employment while keeping the business afloat.

 

SBAAS: A Steady Hand in Stormy Waters

When the client reached out to SBAAS, they weren’t just looking for assistance—they were looking for someone to truly understand what it means to be a small business owner in a high-pressure, low-margin environment.

We worked closely to:

  • Clarify the facts and prepare a professional, structured response
  • Demonstrate that the business had fully complied with both the Fair Work Act and the Fitness Industry Award
  • Highlight that no dismissal had occurred and that all actions were driven by a desire to maintain employment wherever possible

Most importantly, we gave our client the confidence to face the process knowing that they had done the right thing—and had done it well.

 

Lessons for All Small Business Owners

This case is a sobering reminder that even the best intentions can be misinterpreted, and that the stress of staffing decisions isn’t just logistical—it’s deeply personal.

Here’s what every small business should keep in mind:

  1. Always follow a structured process. The Small Business Fair Dismissal Code exists to protect you—use it.
  2. Document everything. Meeting notes, emails, offers, and staff responses all become vital if disputes arise.
  3. Engage in genuine consultation. Invite feedback. Be open. And provide time for staff to consider their options.
  4. Be honest about your circumstances. Sharing your challenges with your team isn’t weakness—it’s leadership.
  5. Know you don’t have to go it alone. Having the right support can help you stay calm, comply with the law, and stay true to your values.

Fairness Isn’t Always Straightforward—But It’s Always Worth It

This story ends not with vindication, but with resilience. The business is still operating, still supporting its community, and still guided by integrity. The team member has moved on, and the business owner has gained clarity and confidence in navigating employment law.

At SBAAS, we believe small business owners deserve not just compliance advice, but compassionate, grounded support when it matters most.

 

Facing a Staffing Challenge or Feeling Unsure About the Rules?

Let us help you take the pressure off. Whether you’re dealing with a staffing concern, navigating award entitlements, or simply want to make sure you’re doing things the right way, we’re here to help.

Book an appointment to speak with a consultant, or learn more about SBAAS on our About Us page.

Picture of Eric Allgood

Eric Allgood

Eric Allgood is the Managing Director of SBAAS and brings over two decades of experience in corporate guidance, with a focus on governance and risk, crisis management, industrial relations, and sustainability.

He founded SBAAS in 2019 to extend his corporate strategies to small businesses, quickly becoming a vital support. His background in IR, governance and risk management, combined with his crisis management skills, has enabled businesses to navigate challenges effectively.

Eric’s commitment to sustainability shapes his approach to fostering inclusive and ethical practices within organisations. His strategic acumen and dedication to sustainable growth have positioned SBAAS as a leader in supporting small businesses through integrity and resilience.

Qualifications:

  • Master of Business Law
  • MBA (USA)
  • Graduate Certificate of Business Administration
  • Graduate Certificate of Training and Development
  • Diploma of Psychology (University of Warwickshire)
  • Bachelor of Applied Management

Memberships:

  • Small Business Association of Australia –
    International Think Tank Member and Sponsor
  • Australian Institute of Company Directors – MAICD
  • Institute of Community Directors Australia – ICDA
  • Australian Human Resource Institute – CAHRI
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