Employment changes effective 1 July 2020


High Income Threshold – Unfair Dismissal

From 1 July 2020 the high income threshold will increase to $153,600 for the 2020/21 financial year, a $4,900 increase from $148,700 in 2019/20.

Employees who are not covered by a Modern Award or enterprise agreement and who earn above the high income threshold cannot make an unfair dismissal claim, even if they have completed the minimum employment period (6 months, or 12 months for a small business i.e. if they have fewer than 15 employees).

Employees who are not protected by the unfair dismissal regime can still bring other employment claims if they are dismissed, such as a general protections claim alleging dismissal for a prohibited reason.

Minimum wages

From 1 July 2020 the national minimum wage (for non-Modern Award covered employees) will increase by 1.75% to $19.84 per hour ($753.80 per week).

Modern Award covered employees will also receive a 1.75% increase but the date the increase will take effect is staggered depending on the award.  Click here to identify the date relevant to your award(s).

Building & Construction Award

The Fair Work Ombudsman has published its updated Pay Guide to the Building and Construction General On-Site Award, available here.

The pay guide incorporates changes to the Building & Construction Award effective 1 July 2020, including increased allowances and changes to special rates.

Employers should be aware of other changes to the Building and Construction Award (including if they are planning or negotiating an enterprise agreement) including new obligations regarding hours of work, living away from home, flexibility for RDOs and TOIL.

Parental Leave Pay Scheme

From 1 July 2020, eligible employees can split their Australian Government Parental Leave Pay (PLP) so they take it over 2 periods within 2 years.

Employees are able to claim PLP for 1 set period and 1 flexible period.  The first period of PLP is available for up to 12 continuous weeks, within 12 months of the birth or adoption of a child.

The second period of PLP is flexible and available for up to 30 days, usually starting after the first period ends and finishing within 24 months of a child’s birth or adoption.

Contact our employment law team if you need any further information about the changes outlined above:

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