Summarised by Centrist
Workplace Relations and Safety Minister Brooke van Velden has announced changes to the Employment Relations Act, introducing greater flexibility in the dismissal process for high-income employees.
Under the new policy, workers earning over $180,000 a year cannot file unjustified dismissal claims unless they and their employers agree to include those protections in their contracts.
Van Velden said the policy, part of the ACT-National coalition agreement, aims to balance organisational performance with fair workplace practices.
“This policy is about offering workers and employers more choice when negotiating contracts,” she explained. Employers will have more flexibility to ensure senior executives or technical specialists align with organisational needs without the risk of costly and disruptive dismissal processes.
“Highly paid workers such as senior executives or technical specialists can have a significant impact on organisational performance and culture,” she noted, adding that the policy could help employers address poor performance in leadership roles more effectively.
The policy enables businesses to trial employees in high-impact roles without the fear of costly repercussions if they underperform.
The policy, coming in 2025, counts only base salaries and not extra perks like bonuses or company cars. Part-time workers are also affected by the policy if their annual base salary is over $180,000, regardless of how many hours they work.
However, some critics argue the changes may weaken protections for senior employees.
