From Saturday 1 July 2023, two key changes will apply to unfair dismissal applications: the high-income threshold will increase from $162,000 to $167,500. the maximum compensation that can be awarded by the Fair Work Commission will rise from $81,000 to $83,750.
The increase to the high income threshold means that award-free and agreement-free employees earning up to $162,000 per annum will now be protected from unfair dismissal and will be eligible to bring an unfair dismissal claim under the Fair Work Act 2009 (Cth) where the dismissal takes place after 1 July 2022.
Furthermore, employees will only be eligible to apply to the FWC for unfair dismissal if: They earn less than the high-income threshold of $158,500 a year; or. They are covered by a modern award or enterprise agreement.
From 1 July 2023, the high income threshold in unfair dismissal cases is $167,500, up from $162,000 and the compensation limit will be $83,750, up from $81,000 for dismissals occurring on or after 1 July 2023.
High income employees
is guaranteed to earn an annual amount which is more than the high income threshold. The high income threshold changes each year. From 1 July 2023, it is $167,500.
Certain criteria must be met for a high income earner to have access to unfair dismissal. Those criteria include that the high income earner has met the minimum employment period. Further, the person must be covered by a Modern Award or an Enterprise Agreement.
From 1 July 2022, the high income threshold was $162,000 per annum and from 1 July 2023 it is $167,500. Therefore, the compensation cap is: $81,000 for a dismissal that occurred on or after 1 July 2022 and before 1 July 2023, and. $83,750 for a dismissal that occurred on or after 1 July 2023.
Under the Fair Work Act 2009 (Cth), a high income employee is classified as someone whose pro-rata employment salary is equal to or above the high income threshold.
With effect from 1 March 2023, employees who earn less than R241 110.59 per year (which equates to about R20 093.00 per month) will enjoy the full protection of the BCEA, the Labour Relations Act, No. 66 of 1995 (the “LRA”) and the Employment Equity Act, No.
The Australian middle class has a median household income of AUD$80,000. This statistic is a key indicator of the financial health of the Australian middle class.
Lower-income households had incomes less than $48,500; Upper-income households had incomes greater than $145,500; Middle-income households fell into a range between those two numbers.
The Temporary Skilled Migration Income Threshold (TSMIT) is currently set at: AUD53,900 for Nomination applications lodged up to and on 30 June 2023. AUD70,000 for Nomination applications lodged on, and after 1 July 2023.
From 1 July 2022 you may be eligible for the low income tax offset only, if you earn up to $66,667. Between 2018–19 and 2021–22, you may have been eligible to receive one or both of the: low income tax offset – if you earn up to $66,667. low and middle income tax offset – if you earn up to $126,000.
Minimum pay rates
As a guide, an employee who is 21 years and over should be getting paid at least $23.23 per hour or $29.04 if they don't get paid leave. You can use our online Pay Calculator (Pay Calculator) to find out the minimum pay rates for different jobs.
If you are an employee in the National System, your redundancy entitlements are guaranteed by the National Employment Standards (NES). The fact that you are a high income earner, does not, on its own, prevent you from redundancy entitlements.
The higher duties allowance is not a set dollar amount, but rather a principle – that an employee working at a higher classification than their own should be paid at the higher classification's wage rate.
You may be entitled to payment of pro-rata long service leave when your employment ends, if you have worked more than five years or more than seven years, but less than 10 depending on where you are employed and the circumstances that led to your employment coming to an end.
Claims Are Available to High-Income Earners
The Fair Work Act also outlines a number of other general protections. These protections differ from an unfair dismissal claim in that employees must demonstrate the reason for their dismissal.
It is important to note that regardless of any agreement you may come to with your employer to reduce your salary, your employer cannot pay you less than the minimum rate under an award that covers your position (if you are award covered). You are not obliged to agree to the change proposed by your employer.
An employee is eligible to make an application for unfair dismissal remedy if they have completed the minimum employment period of: 1 year – where the employer employs fewer than 15 employees (a small business employer), or. 6 months – where the employer employs 15 or more employees.
A dismissal will be seen to be harsh, unjust or unreasonable if there is no valid reason for the dismissal. A valid reason for dismissal may relate to an employee's conduct, capacity or performance. The reason must be sound and well founded, not fickle, fanciful or prejudiced.
casual employees who haven't been employed on a regular and systematic basis. demoted employees if the demotion doesn't involve a significant reduction in pay or duties. employees who weren't covered by an award or agreement and earned more than the high income threshold. employees who were employed for less than 6 ...