Changes to unfair dismissal threshold

Posted on July 4th, 2017

Share on LinkedInTweet about this on TwitterEmail this to someoneShare on Google+Print this page

The “high income threshold” is the figure above which an employee is not eligible to bring a claim for unfair dismissal relief, unless their employment is covered by an award or enterprise agreement. Each year, the high income threshold for unfair dismissal claims is indexed upwards.

The components of remuneration that count towards to high income threshold are wages, money paid on a worker’s behalf (for example salary sacrifice towards non-concessional superannuation contributions; or to vehicle leases and the like) and the agreed value of non-monetary benefits (for example the provision of electronic devices). 

The threshold does not include things like commissions or bonuses (which cannot be determined in advance) nor statutory superannuation payments.

Commencing from 1 July 2017, the high income threshold has increased from $138,900.00, to $142,000.00.

The threshold, and the components that are included in it or excluded from it, are important to both workers and employers. Depending on individual circumstances, they may determine whether or not a worker is able to bring a claim for unfair dismissal relief.

Tony Cavanagh Director at Mullane & Lindsay Solicitors, NewcastleTony Cavanagh is a Director at Mullane & Lindsay Solicitors and practises extensively in Commercial dispute resolution and litigationand employment lawIf you require any assistance in these areas please contact Tony Cavanagh to arrange a consultation or contact our Newcastle or Sydney office. 

Share on LinkedInTweet about this on TwitterEmail this to someoneShare on Google+Print this page