Unfair Dismissal Threshold Increases

13 November 2016

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.

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This Newsletter is made available to our clients and interested parties to provide immediate access to information about important changes and developments relevant to employers. The information contained in this publication should not be relied on as legal advice and should not be treated as a substitute for detailed advice that takes into account particular situations and the particular circumstances of your business.