What impact does the “high income threshold” have on an unfair dismissal claim?

The “high income threshold” is a critical factor under the Fair Work Act 2009 (Cth) that determines eligibility for unfair dismissal claims. This guidance note explores how an employee’s annual rate of earnings influences their ability to seek remedies under unfair dismissal provisions and the broader implications of this threshold. It also addresses the calculation of earnings, including non-monetary benefits and allowances, and alternative legal options available to employees exceeding this threshold.

Topics Covered

• What is the “high income threshold”?
• How is the high income threshold applied?
• Other options available to employees whose earnings exceed the threshold

Essential Insights

• Determine why award/agreement-free employees earning above the threshold cannot claim unfair dismissal.
• Assess how complex elements like non-monetary benefits and car allowances affect annual earnings calculations.
• Recognise the significance of recent case law shaping the interpretation of “earnings” under the FW Act.
• Understand the nuanced approach to prorating thresholds for part-time employees without complete formulas disclosed.
• Explore alternative legal remedies available beyond unfair dismissal claims for high earners.
• Identify why accurate record-keeping of benefits is crucial but how valuation remains legally unsettled.