Unfair Dismissal: Threshold for High Income Employees


The threshold for high income employees from 1 July 2016 is $138,900. This means that an employee that has the following features is not entitled to unfair dismissal:

  • Guaranteed annual earnings of more than $138, 900 exclusive of superannuation; and

  • A modern award or enterprise agreement does not cover the employee.

An employee that is a high income employee, as defined above, is only entitled to the termination notice in the contract for terminations arising from performance or conduct. The high threshold exemption does not apply to unlawful terminations, which involve terminations arising from discriminatory reasons such as age, health or family responsibilities, or terminations such as adverse action for exercising a workplace right including a complaint regarding a statutory obligation of the employer. There should be caution exercised in relation to

modern award coverage for salaried employees as there have been FWC decisions that relatively senior employees in these professions are covered by Modern Awards:

  • Engineers

  • Surveyors

  • IT Professionals

  • Salespersons

Drayton's can provide advice on the application of Modern Awards and offer assistance regarding Unfair Dismissals by emailing us at admin@draytons.com.au or calling (07) 3831 7099.

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