Caps increase for income and compensation

INCOME and compensation thresholds for unfair dismissal claims are set to increase next week.

From 1 July 2018, the high-income threshold for unfair dismissal applications will rise from $142,000 to $145,400, while the maximum compensation limit increases from $71,000 to $72,700.

The increases to the filing fee for unfair dismissal, unlawful dismissal, general protections and anti-bullying applications are made under the Fair Work Act’s sections 395, 775, 373 and 789C.

The high income threshold under the Act’s s382(b)(iii) excludes employees not covered by an award or agreement from making an unfair dismissal claim if they earn more than the amount prescribed in Regulation 2.13 of the Fair Work Regulations 2009.

Section 392(5)(b) provides for maximum compensation for unfair dismissal of half the amount of the high income threshold.

The Fair Work Commission announced the changes on Friday, which are adjusted each year according to inflation.

Bills introduced to overturn FWC’s penalty rates decision & lift minimum wage

Opposition Leader Bill Shorten yesterday introduced legislation yesterday that would make changes to the Fair Work Commission (FWC)’s decision making power in relation to penalty rates.

The Fair Work Amendment (Restoring Penalty Rates) Bill 2018 includes provisions to vary the Fair Work Act 2009 to prohibit the FWC from varying a modern award in a way that would reduce a workers’ take-home pay.

The definition of take-home pay would also in effect prevent the FWC from varying a modern award so as to phase in a cut to penalty rates by offsetting that cut against any annual increases in the modern award minimum wage.

It would also effectively overturn the FWC’S February 2017 decision to reduce Sunday and public holiday penalty rates in some awards, with was reached after a two year period of consultation, submissions and evidence.

Yesterday also saw the Fair Work Amendment (A Living Wage) Bill 2018 introduced by Australian Green lower house MP Adam Bandt.

The Bill would amend the Fair Work Act 2009 to lift the national minimum wage to a living wage of 60 per cent of the median full-time weekly wage, as determined by the Australian Bureau of Statistics.

The FWC would be required to set a phase in period of no longer than six years.

It is unlikely that either Bill will pass the Lower House, where the Government holds a majority.

While weekend penalty rates are not a big issue for resource employers, whose employees are typically on annualised salaries and are among the best remunerated in the country, AREEA supports any decision which moves our workplace relations system in a more competitive direction and provides employers with savings to invest into employing more staff.

AREEA also notes proposed legislative changes in relation to unrealistic minimum wage increases and penalty rates will cost jobs and put small business owners out-of-business.