[2013] FWC 7838

FAIR WORK COMMISSION

EX TEMPORE DECISION


Fair Work Act 2009

s.394—Application for unfair dismissal remedy

Mr Sean Venning
v
McConnell Dowell Constructors (Aust) Pty Ltd
(U2013/10463)

DEPUTY PRESIDENT SMITH

MELBOURNE, 9 OCTOBER 2013

Application for relief from unfair dismissal— whether applicant exceeds the high income threshold—whether certain allowances constitute remuneration for the purposes of the high income threshold—certain allowances do not constitute remuneration—jurisdictional objection dismissed - application remitted for arbitration.

Introduction

[1] On 11 June 2013 Mr Sean Venning lodged an application under s.394 of the Fair Work Act 2009 (the Act) for an unfair dismissal remedy. McConnell Dowell Constructors (Aust) Pty Ltd (McConnell Dowell) subsequently lodged a jurisdictional objection against the application arguing that Mr Venning’s income exceeded the high income threshold (which at the time of Mr Venning’s dismissal was $123,300).

[2] The Act requires jurisdictional objections to be dealt with before the merits of the application. 1 I held a hearing on 4 October 2013 to deal with the jurisdictional objection. Following submissions from the parties, I delivered my decision that Mr Venning’s income did not exceed the high-income threshold. I now publish those reasons, with minor edits.

Consideration

[3] The only issue in contention between the parties was whether or not the site allowance that was paid to Mr Venning constitutes remuneration for the purposes of determining whether or not his salary was in excess of the high income threshold.

[4] Mr Venning’s basic salary at the time of his dismissal was $114,500 per year plus superannuation. Compulsory superannuation contributions are not included in an employee’s earnings. 2

[5] Mr Venning was employed under an employment agreement for McConnell Dowell’s Australian-based staff (the employment agreement), which was annexed to the submissions of the employer. An enterprise agreement did not apply to Mr Venning and there was no evidence as to whether or not he was covered by a modern award.

[6] Clause 10 of the employment agreement defines the employee’s total fixed remuneration package for the position as including the base salary and the compulsory superannuation contribution. It does not include the site allowance.

[7] Further, Schedule A to the employment agreement defines the site allowance as follows:

Decision

[8] I am of the view that the site allowance is not to be considered when determining whether or not an employee exceeds the high income threshold and is therefore a person protected from unfair dismissal 3 as it is for disabilities associated with the site and is not guaranteed.4

[9] Given that Mr Venning’s base salary at the relevant time was less than the high income threshold of $123,300, I dismiss McConnell Dowell’s jurisdictional objection and the matter will be remitted to the arbitration roster.

DEPUTY PRESIDENT

Appearances:

S. Venning the applicant.

M. Durrant on behalf of McConnell Dowell Constructors (Aust) Pty Ltd.

Hearing details:

2013.

Melbourne:

October, 4.

 1   s.396 of the Act.

 2   ss.332(2)(c) and 332(4)(c) of the Act.

 3   s.382 of the Act.

 4   See Explanatory Memorandum 2008 at paragraph 1304.

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