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The federal Workplace Relations Act excludes various categories of employees from bringing unfair dismissal claims. One of these categories applies to employees not covered by award conditions (ie. industry awards, workplace agreements, Individual Transitional Employment Agreements and certified agreements) and whose annual remuneration is in excess of a salary cap. The salary cap is set each year. From 1 July 2008, the salary cap is $106,400.
Although an employee in this category cannot pursue unfair dismissal proceedings, other avenues may still be available including claims of unlawful dismissal, contractual breach or unlawful discriminatory conduct.
The federal Act also limits the compensation that can be awarded to an award free employee whose annual salary is equal to or less than the salary cap. From 1 July 2008, the compensation limit is $53,200.
Therefore, if the Australian Industrial Relations Commission finds a dismissal to be unfair but declines to order reinstatement, a maximum of $53,200 in compensation may be awarded to an employee not employed under an award and whose annual salary is equal to or below the salary cap.
If you have any queries, please do not hesitate to contact us on (02) 9458 7005.
