Employment and Migration Blog

Employees can make unfair dismissal claims if they're covered by a modern award or enterprise agreement. Those not covered can make claims if they earn less than the high income threshold

The Fair Work Ombudsman is in the process of pursuing the owner of an Italian restaurant in Terrigal for failing to pay back nine underpaid employees, including two juniors aged 16 and 19. On top of the total of $12,178.00 owed, the owner could also be facing exposure to penalties, which range from $10,200 per contravention for an individual and $51,000 per contravention for a body corporate.

As at 1 July 2011 – the cap has increased to $118,100 (from $113,800). What does this mean?? If you earn over $118,100 (base salary and other guaranteed payments, but excluding 9% super and “at risk” commissions, bonuses or other incentives) and you are not covered by a modern award or enterprise agreement – you cannot bring an unfair dismissal claim. So remember - it’s really important to calculate how much your employees are earning from 1 July 2011 - as it could affect their unfair dismissal rights as well as their workplace entitlements!!!!

Just a few things to bear in mind, and get in order if need be, as 1 July approaches: Paid parental leave, pay increases, modern award transition and unfair dismissal salary cap.