The Fair Work Commission has increased the high income threshold from $136,700 to $138,900. The increase takes effect from 1 July 2016.
Annual Rate of Earnings and the High Income Threshold
The high income threshold is especially relevant in determining whether a person is protected from unfair dismissal legislation. Section 382 of the Fair Work Act sets out that a person whose annual rate of earnings are more than the threshold is not eligible to make an unfair dismissal claim.
We have previously discussed the items included in the annual rate of earnings here. In summary, for the purposes of determining an employee’s annual rate of earnings:
include wages, amounts applied or dealt with in any way on the employee’s behalf and the agreed monetary value of non-monetary benefits;
do not include statutory superannuation contributions, overtime, commissions, bonuses and reimbursements.
As a result of the increase to the threshold the compensation cap has also increased to $69,450.
For a confidential discussion regarding your eligibility to claim unfair dismissal, contact us today.