The caps for compensation and income in unfair dismissal claims increase from today.
The high-income threshold for unfair dismissal applications increases to $162,000, while the maximum compensation increases to $81,000 for any dismissal claims lodged from 1 July 2022.
The high-income threshold means that the Fair Work Commission will not have jurisdiction to hear a claim for unfair dismissal made by any employee not covered by an award AND who earns more than $162,000.
While $81,000 becomes the new maximum amount of compensation that can be claimed by an employee who alleges unfair dismissal. The two figures are connected, with the maximum compensation set at half the high-income threshold.
Employees lodging claims or employers responding to claims should ensure they keep up to date with these values.
Given the increase in compensation available to employees, it is a good reminder for employers to ensure that their policies relating to the management of complaints and grievances are up to date and that transparent and fair procedure is adopted in managing underperforming employees or employees who are alleged to have engaged in misconduct.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.