Changes to the Unfair Dismissal Remuneration Cap, National Minimum Wage, Minimum Award Rates and Filing Fees

Introduction

New award rates, unfair dismissal thresholds and other changes in the employment arena have been announced, some of which commence from 1 July 2022.

These are some of the main changes.  

Unfair dismissal threshold (high income threshold) and maximum compensation cap

The high income threshold will increase from the previous $158,500 to $162,000 from 1 July 2022. This means employees whose annual rate of earnings is $162,000 (which excludes statutory superannuation) or more, and who are not covered by an award or enterprise agreement, are unable to pursue an unfair dismissal application.

The change also means that the maximum compensation that can be awarded for an unfair dismissal claim will increase from $79,250 to $81,000.

National minimum wage

The national minimum wage will increase to $812.60 per week or to $21.38 per hour (calculated on the basis of a 38-hour week for a full-time employee). This represents a 5.2% increase.

This increase applies from the first full pay period starting on or after 1 July 2022.

Minimum award rates

Minimum award rates will also increase by the higher of 4.6% or $40 per week (based on a 38-hour week for a full-time employee). This means that modern award minimum wage rates currently above $869.60 per week will receive a 4.6% adjustment and current wage rates below $869.60 per week will be adjusted by $40 per week.   

However, please note that for some awards in the aviation, tourism and hospitality sectors, the increase to the minimum award rates has been delayed until the first full pay period starting on or after 1 October 2022.

The adjustment to the minimum award rates may also affect some allowances.

Employers should review applicable awards to ensure compliance.

The award wage increase may also impact upon employers who have enterprise agreements if the wage rates in the enterprise agreements fall below the new award wage rate.

When over-award rates are paid, there is an ability to absorb the increase into the over-award payments.

Filing fee changes

The filing fee for unfair dismissal, unlawful termination, general protections, anti-bullying and sexual harassment at work applications in the Fair Work Commission will increase from $74.90 to $77.80 from 1 July 2022.

There will also be increases to the Federal Court and Federal Circuit Court filing fees.

If you would like more information about the changes, please contact our office on +61 2 9233 3989.

National Workplace Lawyers

Note — this article is for information purposes only and does not purport to be comprehensive or to render legal advice.