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The HR Lounge

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2 contributions to The HR Lounge
💬 One for you, my HR peeps…
I’m sure most of you have been part of redundancy processes — the tough conversations, the leader coaching, the late-night “how do we do this right?” chats. So here’s one that really got me thinking 👇 I recently caught up with an ex-colleague who’s been on maternity leave for the past year. A few months before her return-to-work date, she was told she was being made redundant. Now, knowing the company and how “tactical” corporate timing can be, I asked her the usual HR questions we’d all want to know: - Has the meeting already happened? - Have you signed anything yet? - Is it only your role being made redundant? - Was there any consultation process? - And the big one — who’s doing your role now? Because if someone else is still doing the work…we all know it’s not a genuine redundancy right! Here’s where it gets interesting — she couldn’t actually file for unfair dismissal because her salary was above the high-income threshold, which sits at $183,100 per year (as of 1 July 2025). But — and this is where a lot of companies forget the nuance — she can still lodge a General Protections claim. And given she was the only one made redundant, with someone else performing her duties AND she was on maternity leave, there’s a pretty strong argument for discrimination. Which brings me to my question for you all 👇 Do you think the high-income threshold should apply in cases involving parental leave-related dismissals? Or should there be leniency — broader protection for parents returning from leave, regardless of what they earn? Keen to hear your take on this one.
0 likes • Nov 4
This is an interesting one! To be honest, when I first learnt about the high-income threshold cases it took me by surprise. Why would this ever be a thing? Does it open companies up to not following a due process for feedback and improvement but instead, default to falling into the high-income threshold bucket? Unfortunately I’ve heard of a lot of women on parental leave in the recent years who have been made redundant often before their return across multiple companies. It does get you thinking about what considerations are being made. Being a new mum myself, I couldn’t imagine the impact that would have if I was preparing to return to the workforce only to know I didn’t have a role to return to. Let alone having to find my feet as a working mum and in a new company too.
Set-Off Clauses Are Not a Free Pass (Woolworths 2025 Case)
Here’s a really interesting case I came across this week that I wanted to share! So a lot of employers think: “If I pay a high enough salary, I don’t need to worry about the award.” But this new Federal Court decision shows why that mindset is risky. What the Court confirmed: You can use salary to “set-off” award entitlements but only if it’s done properly: ✅ The salary must cover what’s owed in the same pay period (you can’t average it across months). ✅ The employment contract must clearly say the salary is in satisfaction of award entitlements. ❌ You cannot re-label payments later or pool the money over 6 months and say “it all evens out”. ❌ You still have to keep full overtime/penalty records — set-off clauses do not remove that obligation. Woolworths argued: “We overpaid staff overall across 6 months — that covers any award underpayments.” The Court said no — award entitlements fall due when the pay period ends, not 6 months later. If you didn’t meet them in that pay period, set-off doesn’t save you. They also failed the record-keeping test — roster data and clock-in times were not enough. Why this matters? If you use set-off clauses in contracts, this case is a reminder: - High salary is not a defence - You must match period by period - You must still keep correct time records This is a super important case and one that forces everyone to pause and think on how employers must treat set-off clauses. Let me know your thoughts!
1 like • Oct 29
Agree! An interesting case to keep an eye on. I wonder if through this process we will see changes to the award making requirements clearer. I often get confused when trying to interpret sections.
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Anna Barovs
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@anna-barovs-2208
HR Business Partner

Active 6d ago
Joined Oct 29, 2025