Employment Law

High earners bill

One of the new bills currently progressing through Parliament would allow high income earners to contract out of the Employment Relations Act, in particular the personal grievance provisions. Australia already has a similar law in place. Germany has always distinguished between workers and high income employees, the latter not being eligible or subject to the Employment Court jurisdiction.

In a way, it makes sense. High income earners are usually highly qualified and have enough transferable which allows them to easily transfer from one job to the next. They are also usually in positions which require them, more than others, to simply get along with their superiors, otherwise the whole business is affected. If a CEO doesnt have the confidence of the board anymore, the reality is that he will leave. There will be a discussion and a settlement and people will move on. At that level, there are no reinstatement claims, there are not even PG letters. This has always been the case and the new law wont change that.

So when this new law comes, it will have limited if no effect at all. That is my prediction.