Legislation news: superannuation & Fed unfair dismissal remuneration

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Legislation news: superannuation & Fed unfair dismissal remuneration

Recent IR legislation covers- Superannuation choice of fund extends to more workplaces and Federal unfair dismissal remuneration cap increased.

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Recent IR legislation covers- Superannuation choice of fund extends to more workplaces and Federal unfair dismissal remuneration cap increased.

Superannuation choice of fund extends to more workplaces

From 1 July 2006 superannuation choice of fund laws were extended to include employees who are employed by corporations but who were, prior to WorkChoices, employed under State awards.

The Australian Chamber of Commerce and Industry (ACCI) said these employees are now employed under federal workplace relations laws.

Therefore employers of employees now eligible for superannuation choice of fund must meet the same obligations that applied to employers when superannuation choice was first introduced in July 2005 - that is, to provide eligible employees with a choice of fund form within 28 days (i.e. by 29 July), if they have not already done so.

Exclusions

Exclusions from the choice obligation continue to apply for employers and employees who have agreements recognised by federal or state workplace relations laws that require the payment of (at least) the 9% superannuation guarantee into a nominated fund.

The choice of fund system must ensure that the regulatory burden on employers is not excessive and regulators maintain a sensible approach to compliance and enforcement given the relative newness of these obligations.

Related

Choice of superannuation fund expanded

Former state awards subject to super choice

Federal unfair dismissal remuneration cap increased

The remuneration limit for non-award employees seeking to bring unfair dismissal actions in the federal jurisdiction has been increased to $98,200 for dismissals occurring from 1 July 2006.

The legislation

The federal legislation excludes from unfair dismissal actions employees of constitutional corporations with 100 or fewer employees and employees who are not under a federal industrial instrument (award or agreement) and whose rate of remuneration immediately before termination exceeds the specified rate. The specified rate as of 1 July 2005 was $94,400.
The federal legislation also provides that in considering the remedy for an unfair dismissal, the AIRC may order up to half this specified amount as compensation - ie $49,100.

Related

WorkChoices updates - what you need to know - termination of employment


 

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