A high income employee is an employee who:

• has accepted a written guarantee of annual earnings, and
• the guarantee of annual earnings is more than the high income threshold
• is covered by an award.

See High Income Threshold Amounts for information on the amount that applies.

Guarantee of annual earnings

Employees can only agree to a guarantee of annual earnings under the Fair Work Act (Act) if they are, or would be, covered by an award.

A guarantee of annual earnings isn’t the same as a salary agreement.

See High income employees and a guarantee of annual earnings for more information about entering into a guarantee of annual earnings.

See Rules about when and how to pay employees for more information about other payment arrangements.

High income employees and awards

When an employee becomes a high income employee, award conditions won’t apply to them anymore.

The award will still apply if an employee:

• earns over the high income threshold
• doesn’t have a guarantee of annual earnings, and
• their role could be covered by an award.

Employees that earn over the high income threshold and who are either award free or covered by enterprise agreements aren’t considered high income employees under the Act.

Ending employment and notice periods

When a high income employee ends employment, they’re still entitled to be paid at the rate set out in the guarantee of annual earnings until the termination date.

This includes if notice is paid out instead of worked.

Notice periods for high income employees come from the National Employment Standards.

This is because award conditions don’t apply to high income employees.

See Notice and final pay for more information on minimum notice periods and payment in lieu of notice.

Unfair dismissal

Employees who earn above the high income threshold can make an unfair dismissal application if they’re:

• covered by an agreement
• capable of being covered by an award even though award conditions don’t apply.

Employees who earn over the high income threshold and who aren’t covered by an award or agreement can’t make an unfair dismissal application.

See Unfair dismissal for more information.