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Sunday, 12 July 2015

Changes to minimum wage and unfair dismissal claims


1 July 2015 signalled two significant changes for employers.
The first related to the increased thresholds for unfair dismissal claims.  The income cap for making an unfair dismissal claim has increased to $136,700 from 1 July 2015.
This means that employees who are not covered by an enterprise agreement or award are excluded from making an unfair dismissal claim if they are over this threshold.
The maximum compensation claim that can be awarded in a successful unfair dismissal claim has now increased to $68,350 (6 month’s salary based on the high income threshold).
The second change related to changes to the minimum rates of pay.  From 1 July 2015, the federal modern award wage rates increased 2.5%.  The weekly minimum wage rose to $656.90 or $17.29 per hour.
Employers must now ensure that they pass on the new wage rates as set by the Fair Work Commission.

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