Unfair Dismissal Cap increased
Friday 27 June 2014 @ 3.21 p.m. | Industrial Law
As of 1 July 2014 there will an increase to the high income threshold for unfair dismissal claims, announced the Fair Work Ombudsman on 26 June 2014.
The cap on unfair dismissal claims have always been in place to preclude high income earners not covered by a modern award or an enterprise agreement from lodging an unfair dismissal claim with the Fair Work Commission.
Effective from the 1 July 2014, the cap has been increased to $133,000 from the previous $129,000. This will also mean that the maximum compensation for unfair dismissal that the Commission can award will increase to $66,500 as the sum half of the income threshold.
With the increase to the threshold, employers should be mindful of current remunerations to employees. It should be noted that employees may still challenge an unfair dismissal albeit not under the unfair dismissal provision of the Fair Work Act 2009 (Cth). These other avenues include the general protections provisions of the Fair Work Act 2009 (Cth), anti-discrimination laws, and the common law for breach of contract claims.
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