Increase in the Unfair Dismissal threshold

The Fair Work Act 2009 sets out specific rules and protections relating to the termination of an employment relationship. These rules establish whether the termination of the employment was unlawful or unfair and the entitlements an employee may be owed at the end of their employment.

An employee is eligible to make an unfair dismissal application if they have completed the minimum employment period, which includes: 

• a minimum period of 12 months employment for an employee of a small business. A small business is an employer that employs less than 15 full-time equivalent employees
• a minimum period of six months for an employee who is not employed by a small business employer.

In addition, one or more of the following conditions must apply: 

• a modern award covers the person
• an enterprise agreement applies to the person
• the sum of the person’s annual rate of earnings, and other such applicable amounts, is less than the high income threshold.

As of 1 July the high income threshold increased from $108,300 to $113, 800 per annum. This increase is determined by the Fair Work Regulations 2009, which sets out the method for calculating the increase to the threshold each year on 1 July.