ARTICLE · 16 JULY 2015

High income threshold increases – the effect on unfair dismissal

Kott Gunning

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An employee will not be protected from the unfair dismissal laws unless they earn less than the high income threshold.

AustraliaEmployment and HR

Tim Lethbridge (Previously With Kott Gunning)

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On 1 July 2015, the high income threshold under the Fair Work Act 2009 (Cth) increased from $133,000 to $136,700.

An employee will not be protected from unfair dismissal unless they satisfy one of these conditions:

they earn less than the high income threshold; or
a modern award covers their employment; or
an enterprise agreement applies to their employment.

Earnings include:

wages;
amounts dealt with on the employee's behalf or as the employee directs; and
agreed money value of non-monetary benefits.

If the employee and employer have agreed on a reasonable money value for particular benefits, that value will apply. Otherwise, if the amount of earnings is in dispute, the Fair Work Commission (FWC) will apply an estimated monetary value for a non-monetary benefit.

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