From 1 July 2024 High-income Threshold for Unfair Dismissal increased to $175,000

From 1 July 2024, the high-income threshold in unfair dismissal cases increased to $175,000 per annum. The high-income threshold was $167,500 in the previous financial year. As a result of the increase, the compensation cap is $ 87,500 for a dismissal that occurred on or after 1 July 2024.

Employers can mitigate the risk of being subject to an unfair dismissal claim by providing their employees with proper procedural fairness in accordance with the relevant workplace policies and procedures and the best practice guides published on the Fair Work Ombudsman’s website.

Any employee can make an unfair dismissal claim if they:

1. have been employed with an employer for the minimum employment period; and
2. are covered by a Modern Award or enterprise agreement, or earn less than the high-income threshold of $175,000.

In some circumstances, casual employees may also be eligible to make an unfair dismissal claim if certain factors relating to their employment can be established.

Need assistance?

As part of your membership, the MBA Workplace Relations and Legal team can offer support and advocate on your behalf at conciliation, should you require it. The team can also provide assistance, guidance and templates to assist you in managing employee performance and behaviour. You can reach the team on (02) 6175 5000.