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Fair Work Commission changes are coming on 1 July - are you ready?

27 June 2019

The Fair Work Commission has recently advised of a number of changes which will take effect from 1 July 2019.

The Fair Work Commission has recently advised of a number of changes which will take effect from 1 July 2019.

 

Summary of changes

 

Until 30 June 2019

From 1 July 2019

High income threshold

$145,400

$148,700

Maximum compensation (unfair dismissal claims only)

$72,700

$74,350

Filing fees (unfair dismissal, unlawful dismissal, general protections and anti-bullying applications)

$71.90

$73.20

 

What is the high income threshold?

In order to qualify for unfair dismissal protection, an employee must:

  • meet minimum continuous service requirements, which is 12 months for businesses with fewer than 15 employees (excluding genuine casuals), and 6 months for other employers; and
  • either:
    • earn less than the high income threshold; or
    • be covered by a modern award or enterprise agreement.

It is important to note that the high income threshold does not include compulsory superannuation or amounts that cannot be determined in advance (e.g. commissions).

 

What do you need to do?

For employees on higher incomes (and who are not covered by an award or enterprise agreement), you should review whether the above increases will bring them within the ambit of the unfair dismissal jurisdiction from 1 July.

This will have an obvious impact on managing employee underperformance and/or misconduct moving forward in terms of exposure to unfair dismissal claims.

 

If you require further information or have any queries in relation to this alert, please contact Sina Zevari.

 

Acknowledgements

We would like to acknowledge the contribution of Lachlan Thomas to this article.

Further Reading