Increase to the unfair dismissal cap/ high income threshold

The Fair Work Commission (FWC) has this week announced that, from 1 July, the high income threshold in unfair dismissal cases will increase to $148,700.

Employee's earning up to this amount are eligible to apply for protection from unfair dismissal under the Fair Work Act.

The FWC has also announced that for dismissals occurring on or after 1 July, the compensation limit will be $74,350.

Employers need to be conscious of the increased thresholds for any terminations of employment that occur after 1 July. And any employers that offer a guarantee of annual earnings after 1 July will also need to ensure that the amount exceeds the new threshold.

Increase to the minimum wage

From the first full pay period on or after 1 July 2019, the national minimum wage and the modern award minimum wage will increase by three per cent.

The decision affects close to 2.2 million or 21 per cent of Australian employees who have their pay set by a modern award and 180,220 or 1.7 per cent of employees who are paid at the adult minimum wage rate.

Key changes from the Fair Work Commission's Annual Wage Review are:

  • three per cent increase in the national minimum wage for award/agreement free employees, which will see:
  • the current weekly minimum wage increase from $719.20 to $740.78 (an increase of $21.60 per week)
  • the current hourly minimum wage increase from $18.93 to $19.49 (an increase of 56 cents per hour).
  • three per cent increase to the modern award minimum wages
  • the current casual loadings in the modern awards and for award/agreement free employees will remain at 25 per cent.

Read our more extensive update on this change here.

Coming soon...

Deadline approaches for Victoria's labour hire licensing scheme

A licensing system to regulate the provision of labour hire services is set to be introduced as part of a raft of changes under the Labour Hire Licensing Act 2018 (Vic) that was introduced last year.

Agencies that fall within the Act or the Regulations are required to apply for a licence by 30 October 2019.

As part of this application, agencies need to obtain and disclose the following information:

  • the number of workers supplied
  • the types of visas held by workers
  • whether an investigation by a regulator, or proceedings in a court or tribunal is on foot in relation to labour hire laws, workplace laws or minimum accommodations standards
  • whether an incident has occurred in the preceding 12 months to which the applicant was required to notify the regulator in relation to occupational health and safety or workers compensation
  • agencies must also meet the 'fit and proper person' requirement of the application.

Read our full update on this issue here.

This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.