Increase To The High Income Threshold Under The Fair Work Act 2009 (Cth)

The High Income Threshold for former employees claiming unfair dismissal under the Fair Work Act 2009 (Cth) will increase from $136,700 to $138,900 on 1 July 2016. Under section 382, a person cannot bring a claim for unfair dismissal against a former employer where the sum of their annual rate of earnings exceeds the High Income Threshold, unless that employee is covered by a modern award or an enterprise agreement.

The following payments are included when determining an employee's earnings: (i) wages; (ii) amounts dealt with on the employee's behalf or as they direct; and (iii) the agreed value of non-monetary benefits. However, payments that cannot be determined in advance (e.g. incentive-based bonuses or non-guaranteed overtime), reimbursements and compulsory superannuation contributions by an employer are not included when calculating an employee's earnings.