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Award-Free Doesn’t Mean Risk-Free — HR Advice for Professional Services Firms

From high income threshold changes to restraint of trade clauses and partner classification, professional services firms face a distinct set of employment law risks. Get advice built for your firm.

Australian professional services firm partners reviewing employment documents

Not a government body
Employer-side advice only
Direct lawyer access — no call centres
Fair Work Commission representation

The Problem

Professional Services Firms Face Risk That’s Easy to Overlook

Many professionals earning above the high income threshold are excluded from award coverage, but the National Employment Standards still apply in full under the Fair Work Act 2009 — award-free doesn’t mean entitlement-free.

1

Award-free status is often assumed, not confirmed

Being paid above the high income threshold doesn’t automatically remove award coverage — it depends on a formal guarantee of annual earnings being in place correctly.

2

Restraint of trade clauses are frequently unenforceable

Courts will strike down restraints that are broader than reasonably necessary to protect the business — a poorly drafted clause offers no real protection when a senior employee leaves.

3

Underperformance in senior roles is harder to manage

Performance issues in professional roles are often left unaddressed for too long, making any eventual termination harder to defend if challenged.

4

Partner vs employee classification disputes

Where the line between partner and employee is blurred, disputes over entitlements and obligations on exit become significantly more complex.

How We Help

Advice Built for Partners, Principals and Professional Staff

Fair Work Centre helps accounting, legal and consulting firms manage award-free classification, enforceable exit clauses and defensible performance processes for senior staff.

All advice reflects the current high income threshold and the latest Fair Work Commission guidance on restraint of trade enforceability.

  • Confirm award-free status and correct high income threshold treatment
  • Draft enforceable restraint of trade and confidentiality clauses
  • Advise on managing underperformance in senior and professional roles
  • Clarify partner vs employee classification and its implications
  • Draft compliant employment contracts for professional staff
  • Advise on redundancy when restructuring practice groups
  • Represent your firm in Fair Work Commission matters

Key Facts Every Professional Services Employer Should Know

$163,000
High income threshold from 1 July 2026 for award exclusion
21 days
Window for an unfair dismissal claim after a termination
Reasonable
The legal test restraint of trade clauses must meet to be enforceable
6 years
How far back an underpayment claim can reach

How It Works

Get Advice in Three Steps

1

Call or enquire

Call 1300 161 828 or book a free initial advice call about your business.

2

Speak to a dedicated lawyer

We review your specific classification, contracts and compliance risk.

3

Resolve with confidence

Get a clear compliance plan built for your business and workforce.

Get Your Firm’s Contracts and Restraints Right

A short advice call now can prevent an unenforceable clause costing you when a senior employee leaves.

Membership

Plans Built for Ongoing Employer Protection

Standard
$118/month
  • 50+ HR document templates
  • Employment agreement templates
  • Self-service HR resources

See Plan Details

Professional
$346/month
  • Everything in Advanced
  • Unlimited lawyer advice sessions
  • Fair Work Commission representation

See Plan Details

Common Questions

Frequently Asked Questions

Not automatically. The employee needs a valid guarantee of annual earnings in place that meets the legal requirements — without it, award coverage and its entitlements can still apply.

They can be, but only to the extent reasonably necessary to protect a legitimate business interest. Overly broad restraints on time, geography or scope are routinely struck down or narrowed by courts.

Skipping a fair process significantly increases risk, even for senior roles. A documented process showing the employee had a genuine opportunity to improve puts you in a far stronger position.

This depends on the legal structure and substance of the arrangement, not the title. Genuine equity partners are generally not employees, but titled ‘partners’ who are really employees can still bring claims.

Restraint obligations generally continue to apply based on the original contract terms, but restructures are a good opportunity to review and refresh outdated clauses.

Yes, employees (not genuine contractors or partners) are entitled to redundancy pay under the National Employment Standards if their role is genuinely no longer required, based on length of service.

No. Fair Work Centre is an independent private advisory service for employers. We are not associated with or authorised by the Fair Work Ombudsman, the Fair Work Commission, or any government authority.

Fair Work Centre is an independent private organisation providing advisory services to employers only. It is not associated with or authorised by the Fair Work Ombudsman, the Fair Work Commission, or any government authority.

Free Initial Legal Guidance For Employers

Speak to an Employment Lawyer at Fair Work Centre

To change or request cancellation of your Client Membership, please email us with your request at: info@fairworkcentre.com.au.

Refer to our Terms of Service for changes or cancellation requests.

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Employers / HR Managers:  1300 161 828
Employees / Workers:  13 13 94

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