Never assume management level employees or those on high incomes are excluded from industry awards. Even large businesses can fall into this trap, as one large real estate company discovered. Here’s a summary of the Fair Work case.
Background
One of the Company’s licensed real estate agents was made redundant. In his role, as Regional Director, he was responsible for supervising less senior agents. When the Company made him redundant, he applied for an unfair dismissal remedy under the Fair Work Act 2009 (Cth).
The Company’s Argument
The Company argued the employee’s income was over the high income threshold. In addition, he held a senior management role so he was not covered under a modern award or enterprise agreement. As a result, the employee was ineligible for protection from unfair dismissal.
The Employee’s Argument
The employee argued there were approx. 50 people in the organisation who held similar job titles. While he attended update meetings on the Company’s financial position, he never participated in any strategic decision-making or budget setting.
The Finding
The Fair Work Commission determined the employee’s duties and principal purpose of employment was to sell property. His high remuneration and leadership position supported the value he represented to the Company as a highly successful real estate agent. Therefore, he was covered under the Real Estate Industry Award as a Property Sales Representative and was entitled to protection from unfair dismissal.
Get the right advice
As this Fair Work case demonstrates, it’s important to get correct advice before you act. End2End Business Solutions is your outsourced HR department. We’re here to help you stay compliant and out of trouble.
Don’t act in haste. Call us first on 02 8977 4002.