I’m always amazed at how many people I’ve spoken to have never heard of the high income threshold. An employee’s eligibility for unfair dismissal protection is limited by the high income threshold under the Fair Work Act 2009. Employees who do not have a modern award or an enterprise agreement must have an annual income less than the high income threshold in order to qualify.

The high income threshold is currently $162,000. This figure is adjusted annually on 1 July.

This income is made up of your wages, salary sacrifice and any other monies paid either to you or on your behalf by your employer. It does not include payments for things you cannot determine in advance (such as commission or reimbursements).

If you are considered high income, a claim for unfair dismissal is not the only available remedy for employees who are terminated from their jobs. The Fair Work Commission may impose liability on employers for unlawful termination and general protection claims if they dismiss an employee without lawful cause. Employers may also be liable for claims of breach of contract, discrimination, or WorkCover, depending on the circumstances of the dismissal.

If you are dismissed the reason should still be valid and fair.

Dismissals that are considered unfair generally fall into the following categories:

• the redundancy is not genuine, i.e. the position was not actually made redundant;
• The dismissal was not carried out according to the correct procedures;
• the employee was terminated as a result of unsatisfactory performance, however the employee was never notified of any issues relating to their performance in the lead up to the terminated;
• During any meetings or discussions directly related to the dismissal, the employer refused to allow the employee to have a support person present;
• A valid reason has not been given for the dismissal;
• There was no formal notification (written termination notice) as to the reason for the dismissal;
• Employees were not given an opportunity to challenge the reasons for dismissal.

There are a number of situations in which a termination is considered unlawful:

• The absence occurred during maternity leave or other parental leave;
• A worker was absent from work due to illness or injury;
• There was discrimination involved (race, colour, sex, age, sexual preference, marital status, physical or mental disability, pregnancy, political opinion, religion, family obligations, social origin or national extraction);
• Due to membership in a union, participation in union activities, or non-membership;
• The employee made an official complaint against their employer or participated in a proceeding.