Generally, unfair dismissal claims can be presented before the Fair Work Commission if an employee can show that the termination was harsh, unjust or unreasonable.
Prior to 1 July 2018, the high earner threshold was $142,000. Now the income has increased to $175,000. So, what does this wage increase and associated changes mean?
High income earners and unfair dismissal claims
As an employee, if you earn more than the high income amount prescribed you are not covered by a modern award or an enterprise agreement and as such you cannot make an unfair dismissal claim.
However, let’s say that you are covered by a modern award and you have agreed to a written guarantee of annual earnings that are more than the high earners income threshold. Then you can make an unfair dismissal claim, but will not be eligible for entitlements under the applicable modern award.
Now let’s say your annual salary is $165,000 and your employer provides you with a company car valued at $15,000 in addition to your salary. If this is the case, you will be classified as a high earner and will be excluded from making an unfair dismissal claim.
If you are a high income earner and you believe you have been unfairly dismissed, it would be worth your while to contact one of our lawyers. Call us on (02) 9199 8597 or email us and we’d be happy to discuss what options you have available to you.
The information contained in this post is current at the date of editing – 25 February 2025.
