Unfair Dismissal Access for High Income Threshold: FY23-24

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Those employees who are classified as high-income earners may be limited in terms of their eligibility to file unfair dismissal claims, as per the Fair Work Act.

Currently, the high-income threshold for the financial year (FY) of 2023-24 is $167,500.

Even where an employee is not covered by a modern award or relevant agreement, they are likely to be classified as a high-income earner if their annual earnings are higher than $167,500.

Earnings can include, but are not limited to the following:

wages
other amounts worked out in accordance with the regulations
amounts dealt with on the employee’s behalf or as the employee directs, and

the agreed monetary value of non-monetary benefits.

However, earnings don't include payments that cannot be determined in advance. This includes things such as overtime, commissions, reimbursements, and superannuation contributions.

Where an employee earns above the high-income threshold cap and is not covered by a modern award or enterprise agreement, they will not be able to make an unfair dismissal claim, even if they feel their dismissal was harsh, unjust, and/or unreasonable.

HOWEVER - If there is still scope for the employee to be covered by an Award, even though Award conditions don't currently apply, they may be eligible to make an unfair dismissal claim.

If you'd like further information on how the high-income threshold influences an employee's ability to make an unfair dismissal claim, you can access the Fair Work Commission here.

Alternatively, if you have any questions, please don't hesitate to reach out to the Employii team at [email protected]

Author: Chelsea Finlay (HR Officer).

Unfair Dismissal Access for High Income Threshold: FY23-24

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