Changes to unfair dismissal claims

From 1 July, 2021 the income and compensation caps for unfair dismissal claims will increase, along with filing fees for lodging an unfair dismissal application.

• The high income threshold rises from $153,600 to $158,500;

• The compensation cap increases from $76,800 to $79,250;

• The filing fee for an application increases from $74.50 to $74.90.

The high income threshold is relevant as to eligibility of an employee to commence an unfair dismissal claim. To be eligible, an employee must:

• Have completed their minimum period of employment (6 months, or 12 months for a small business employer);

AND

• Earn less than the high income threshold; or

• Be covered by a modern award; or

• Be covered by an enterprise agreement.

This means that any employee who is not covered by a modern award or enterprise agreement will only be eligible to apply for unfair dismissal if their annual earnings are less than the high income threshold.

The compensation cap is the maximum order for compensation in any unfair dismissal claim, which is half the amount of the high income threshold.

If you have any questions about unfair dismissal, please contact our experienced employment law team.