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New High Income Threshold for Unfair Dismissal Claims & New Award rates apply on 1 July 2016

NEW HIGH INCOME THRESHOLD FOR UNFAIR DISMISSAL CLAIMS

On 1 July 2016, the high income threshold for unfair dismissal claims rises from $136,700 per annum to $138,900 per annum. However, not all payments to employees are included in the threshold.  The following payments are included

  • Wages
  • Salary sacrifice amounts
  • Agreed value of non-monetary benefits;
  • Other payments that can be determined in advance, such as regular bonuses and regular overtime.

Payments that are excluded from the high income threshold include:

  • payments that cannot be determined in advance;
  • reimbursements;
  • superannuation contributions made by the employer on behalf of the employee

NEW AWARD RATES APPLY ON 1 JULY 2016

The maximum amount that the Fair Work Commission (“FWC”) can award in unfair dismissal matters has also increased, to $69,450.00.

The Fair Work Commission (“FWC”) has announced a 2.4% increase to minimum wages.  This increase will apply from the first full pay period starting on or after 1 July 2016.

The new national minimum wage will be $672.70 per week or $17.70 per hour applies to employees who aren’t covered by a Modern Award or Enterprise Agreement..

The 2.4% increase only applies to employees that get their pay rates from:

  • the national minimum wage
  • a Modern Award or
  • a registered Enterprise Agreement that refers to increases in Modern Awards or applies the FWC increase.
  • The increase won’t affect employees who are already getting paid more than the new minimum wage.

The increase won’t affect employees who are already getting paid more than the new minimum wage.