ARTICLE · 26 JULY 2010

Unfair Dismissal Door Opens For CEOs

Truman Hoyle

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It appears that Mark McInnes has done what most CEOs do when faced with a dispute with the Board, negotiate a settlement of his contractual rights.

AustraliaEmployment and HR

Fiona Inverarity

It appears that Mark McInnes has done what most CEOs do when faced with a dispute with the Board, negotiate a settlement of his contractual rights. Perhaps one of the factors motivating David Jones in such a negotiation was one of the new back door unfair dismissal actions by CEO's and senior executives.

Previously only employees earning less than $108,000 could launch unfair dismissal claims. CEOs and senior executives had to commence expensive and lengthy breach of contract cases if they were dismissed. If their employment was being threatened and they had short notice periods they had really nowhere to go. Incentives that form a big part of packages can easily be contractually unattainable if an employer wants to play hard ball.

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