Contrary to public belief, a high earning employee can still pursue an unfair dismissal claim if they are covered by a modern award.

In a recent FWC (Fair Work Commission) case, a former regional director claimed that a multibillion dollar real estate business unfairly dismissed him when it made him redundant. 

The employer made a jurisdictional objection to the application, arguing that he was not a person protected from unfair dismissal. This was on the basis that the director’s earnings were in excess of the high-income threshold and the general accountabilities/requirements of his position were beyond the classifications in the Real Estate Industry Award.   

However, the FWC disagreed and said that there was nothing in the director’s regular duties that could be described as a managerial function or as a direct report. He said that award coverage is not determined by the person’s title but rather, the duties performed.

In this factual scenario, the principal purpose of the director’s position was to attract and sell high-value real estate transactions rather than perform managerial duties. As such, his duties fell within the role definition of a property sales representative under the Award and therefore, was protected from unfair dismissal. 

Employers cannot assume that paying above the high-income threshold, and conferring executive style titles on experienced employees, will guarantee immunity from unfair dismissal claims. If the employee’s duties are covered by a modern award, then they will be protected from unfair dismissal despite being highly paid.

Back to Newsletter