Unfair Dismissal Experts

Earning too much to claim unfair dismissal?

A lot of higher earners assume their salary rules them out of an unfair dismissal claim. Often it does not. Whether the high income threshold actually excludes you depends on two things most people do not check.

If you are not sure, do not assume the worst. Call 1800 UNFAIR (1800 863 247). The first call is free, with no obligation.

What the threshold is

There is a high income threshold set under the Fair Work Act, indexed on 1 July each year. It is currently $190,100.

But earning above it does not automatically exclude you. Here is the part people miss.

The two questions that actually matter

1. Are you covered by an award or agreement?

If a modern award covers your role, or an enterprise agreement applies to you, the high income threshold does not exclude you at all. You can claim regardless of what you earn. A great many people assume their salary rules them out when in fact an award quietly covers their role. This is worth checking before you write off a claim.

2. What actually counts as your earnings?

Even where the threshold does apply, the figure used is not simply your headline package. Some things are included and some are left out. Included: your wages, amounts you direct to be paid on your behalf, and the agreed money value of non-monetary benefits like the private use of a company car. Excluded: compulsory superannuation contributions, reimbursements, and any payments that can't be worked out in advance, such as commissions, bonuses, or overtime that isn't guaranteed.

Because commissions and discretionary bonuses that cannot be worked out in advance are often excluded, people who assumed they were over the threshold sometimes turn out to be under it.

Why this matters for the cap too

The high income threshold also sets the ceiling on compensation. The maximum the Commission can order in an unfair dismissal case is the lesser of 26 weeks' pay or half the threshold, currently $95,050. Awards near the cap are rare, and there is more on realistic outcomes on our compensation page.

The 21 day deadline

If you were dismissed, you generally have 21 days from the day it took effect to lodge. Do not spend that time assuming you are excluded. Check first.

Do not rule yourself out

Whether the threshold excludes you turns on award coverage and exactly how your earnings are counted. Both are easy to get wrong, and both are worth a quick check before you decide you have no claim.

Call 1800 UNFAIR (1800 863 247). The first call is free and there is no obligation. Monday to Friday 9am to 9pm, weekends 9am to 5pm.

We are paid agents, not lawyers. We represent employees at the Fair Work Commission and we will tell you honestly whether you can claim.

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