Get help understanding the banking and finance award system, how the high income threshold can affect you, and whether a redundancy is legitimate.
Are you covered by an award?
Modern awards have been imposed by the Fair Work Commission and are present to ensure an employee is receiving all their legal pay and leave entitlements. The majority of those working in the banking sector are covered by the Banking, Finance and Insurance Award 2010.
The modern award stipulates terms in relation to redundancies, remuneration, superannuation and leave. Those who work in the banking sector but are not covered by the award include high income earners which are those who earn $145, 400 or more and those working in the public sector.
However, an employee with a significant salary and high-level responsibilities may still be covered by the award if their principle purpose is to undertake duties that fall within the classification structure of the Banking, Finance and Insurance Award 2010.
If you work in the banking sector and are concerned about what award you are employed under contact JFMLAW on 02 9331 0266 to gain certainty.
What is high income?
The high-income threshold operates to limit an employee’s eligibility to make a claim for unfair dismissal at the Fair Work Commission. The current high-income threshold as of 1 July 2018 is $145, 400, however the figure is adjusted annually. Many employees working in the banking and finance industry are covered by the Banking, Finance and Insurance Award. This ensures employees receive their correct pay and leave entitlements.
However, employees that are considered high income earners are not protected by the modern award. High income earners are to be referred to the National Employment Standards (NES) which provides 10 minimum employment entitlements. The banking and finance industry has many employees which are not covered by a modern award. It is important for employees such as executives, who are not covered by the award to ensure that they are receiving the minimum entitlements according to the National Employment Standards.
If you are a high-income earner and concerned about your contract or working entitlements do not hesitate to contact JFMLAW for further clarification on your rights.
Have you been made redundant?
The recent Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has seen a great deal of redundancies; both genuine and otherwise.
A genuine redundancy occurs when an employer no longer requires the employee’s job to be performed by anyone due to operational changes. For a genuine redundancy to be executed effectively there needs to be clear passages of communication between the employee and employer. This puts a stop to rumours circling around the office.
Unfortunately, it is often the case that a redundancy is masking issues of poor performance or misconduct. When a redundancy is incorrectly implemented, it can give rise to unfair dismissal claims.
If you work in the banking sector and have been made redundant, contact JFMLAW to ensure that it is a genuine redundancy and that you have not been unfairly dismissed. For further reading, take a look at our guide to workplace changes brought about by the Banking Royal Commission.
Do you still have questions about the banking and finance award? Please do not hesitate to contact us on 02 9331 0266 to have a free of charge discussion.