The back wages cap explained
The part of the law that limits how much back pay a court can award.
The Second Schedule is a short part of the law with a big effect. It sets the ceiling on one of the first things workers ask about a dismissal claim.
What it means
It is the part of the Industrial Relations Act 1967 that limits back wages. These are the salary an Industrial Court can order for the time you were out of work after dismissal.
The limit is a maximum period for the calculation. It applies however long the case itself takes to resolve.
Why it matters to you
The cap depends on your employment status. It is 24 months for a confirmed employee and 12 months for a probationer, counted from your dismissal date to the last day of hearing.1
Knowing this early helps you set realistic expectations, especially if your case is likely to take a long time to be heard.
What does this schedule set out
It does not set a fixed money figure. It sets only the outer limit of the period used in the calculation, which then uses your actual last-drawn salary.
Read about back wages to see how the cap fits into the full calculation. Read about confirmation if you are unsure which cap applies to you.
If you have not yet filed, none of this matters until your claim is in, so check your window on the deadline calculator.
If you are claiming back wages and the Second Schedule cap affects you, send the date and what happened. An independent employment lawyer can review whether it is a case they can take on.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.
Common questions
Does the Second Schedule set the exact amount I would receive?
No. It sets the ceiling, not the final figure. The actual amount still depends on your salary, the length of your case and any income earned elsewhere during that period.
Does this cap apply to every remedy, not just back wages?
The cap concerns back wages only. Other parts of an award, such as reinstatement or compensation in lieu of it, are assessed on a different basis.
Sources
- Back wages awarded by the Industrial Court are assessed from the date of dismissal to the last day of hearing, capped at 24 months for a confirmed employee and 12 months for a probationer under the Second Schedule of the Industrial Relations Act 1967. DNH, Monetary Remedies at the Industrial Court
Keep reading
If you are claiming back wages and the Second Schedule cap affects you, send the date and what happened. An independent employment lawyer can review whether it is a case they can take on.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.