More employees covered by increase in minimum wage for unfair dismissal claims

by 19 Jun 2013

The Fair Work Commission (FWC) has increased the salary threshold for unfair dismissal claims to nearly $130,000 (Gross) a year from 1 July, 2013.

Individuals earning up to $129,300 from 1 July will be able to apply for an unfair dismissal claim. Additionally, the maximum compensation has increased to $64,650, up from $61,650.

Alistair Salmon, partner at Holding Redlich, said the increase in the threshold from $123,300 a year means that it is not just award covered or low income employees that can access unfair dismissal, “but a far wider cohort of middle income earners”.

“Employers should exercise caution in dismissing employees for unsatisfactory work performance or conduct and ensure that they adhere to best practice which includes seeking appropriate advice before acting,” Salmon said.

The high income threshold under the Fair Work Regulations Act (2009) excludes employees not covered by an award or agreement from making an unfair dismissal claim if they earn more than the amount prescribed in Regulation 2.13 of the Act.

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