Unfair Dismissal Threshold Increases

Each year from the 1st July the high income threshold for unfair dismissal claims automatically increases, and from the 1st July 2016 it is $138,900. This means that the maximum amount of compensation that the Fair Work Commission can award in the case of an unfair dismissal is half of the threshold, $69,450.

The effect of the above that where an employee is not covered by an award or an enterprise agreement they can only bring an unfair dismissal claim if their income is below the threshold. If an employee is covered by an award or an enterprise agreement then an employee will still be able to bring an unfair dismissal claim even if their income is greater than the threshold.

On a weekly basis EMA Legal defends unfair dismissal applications. If you would like more information concerning unfair dismissals or are facing a claim brought by a former employee please contact us.