The Schedule That Caps Your Back Wages
You heard your payout has a ceiling and want to know where that number actually comes from.
The Second Schedule rarely gets discussed on its own, yet it is the actual source of one of the most repeated numbers in this whole area of law.
What does the Second Schedule actually do?
It is a short part of the Industrial Relations Act 1967 that limits how far back an award of back wages can reach.
Rather than being open ended, it fixes a maximum period, running from your dismissal date to the last day of your hearing, regardless of how long the case itself drags on.
What are the actual limits it sets?
The cap is 24 months for a confirmed employee and 12 months for a probationer, measured across that same period.1
Your employment status at the point of dismissal, confirmed or still on probation, is what decides which of the two limits applies to you.
Why does this matter beyond the headline number?
The schedule sets a ceiling, not a promised figure. It does not fix that amount, and the final sum is worked out from your actual last-drawn salary.
Earnings you received from other work during that same window can also be deducted, which usually brings the real figure below the maximum.2
How does this fit with the rest of your claim?
This schedule only concerns back wages. It says nothing about whether you get your job back, which sits under reinstatement as a separate remedy entirely.
Read about back wages and compensation for how this cap fits into the broader calculation an Industrial Court works through.
What should you check first?
Confirm whether you were a confirmed employee or still on probation on your dismissal date, since that single fact decides which cap applies.
Then check your own filing window on the deadline calculator, since none of this matters until a claim is actually lodged in time.
Tell us whether you were confirmed or still on probation when you were dismissed, and we can explain how this cap would likely apply to your case.
Common questions
Does the Second Schedule set my exact payout figure?
No. It only sets the outer time limit the calculation can cover. Your actual figure still depends on your last-drawn salary and how long your case takes.
Why does a probationer get a shorter cap than a confirmed employee?
The law treats the two differently in this schedule, with confirmed staff capped at a longer period. Confirming your own status is a useful first step.
Does this cap apply to reinstatement too?
No. Reinstatement is a separate remedy, getting your job back. This schedule specifically limits the back-wages calculation, not whether you are reinstated.
Can money I earned elsewhere after dismissal reduce this figure?
Yes, earnings from other work during that period are commonly deducted from the calculation, so the final figure is rarely the maximum on its own.
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
- Earnings a dismissed employee received from other work after dismissal may be deducted when the Industrial Court calculates back wages. DNH, Monetary Remedies at the Industrial Court
Keep reading
Tell us whether you were confirmed or still on probation when you were dismissed, and we can explain how this cap would likely apply to your case.