Unjustified Dismissals - Update

The Employment Relations Amendment Bill is expected to pass in 2025 which will preclude employees who earn an income of more than $180,000 (base pay) from being able to raise a personal grievance for unjustified dismissal. 

Cabinet has announced that, once the amendments are in force, the income threshold:

• Will apply to new employment agreements entered into;

• Will not apply to existing employment agreements for the first transition period of 12 months.

The transition period will give employers and employees time to negotiate and amend existing employment agreements during that period, this could include opting back in to the unjustified dismissal protection, or it could include negotiating specific clauses addressing dismissal terms and conditions.

The income threshold does not affect the employee’s ability to raise a personal grievance for any matter other than dismissal. Now is a good time to take an audit of which employment agreements might be affected by the income threshold and start planning ahead.

Contact our employment law team today.