COVID-19 EMPLOYMENT UPDATE
There have been quite a few changes in the regulations surrounding employment as a result of the COVID-19 pandemic. Due to the pandemic, turnover and how an organisation operates (such as the need for office space, how to conduct meetings and number of employees etc) has changed and will remain changed for many businesses in Australia.
One area of law that is confusing Australia is employment law and the employees and employers’ obligations. As always, employers and employees have obligations to one another in accordance with their employment agreements which should be based on the legislation and regulations applicable at the time of agreement. Now that COVID-19 has changed the atmosphere within which businesses are operating these regulations have altered somewhat, to better suit the conditions that business is currently in.
To assist business during COVID19, the Government has sought to keep unemployment to a minimum and businesses afloat throughout these trying times. This has resulted in new legislation that will be applicable only throughout the COVID-19 pandemic, when this end (as defined by the Australian Government) these measures will be stopped again. Here we will look specifically at things that have changed within the regulations.
UNPAID LEAVE
As a result of the COVID-19 pandemic, a two-week unpaid pandemic leave has been added by the Fair Work Commission. This means that if an employee is prevented from working due to being required to self-isolate by governmental or medical authorities, or by advise by a medical practitioner or is prevented from working due to government restrictions in response to the pandemic they can take out two week’s unpaid leave without having to use up their accrued paid leave. The two weeks can be extended in agreement with the employer. Employees who chose to use this pandemic leave has to inform their employer that they are doing so, and the reason why. An employer can ask for evidence for the leave reason, which the employee then needs to show. The unpaid pandemic leave needs to start before 30th June, but can end after that date. More unpaid leave can always be allowed by agreement between employer and employee.
TIME OFF AT HALF PAY
Another change the Fair Work Commission put into effect was the option of doubling the annual leave at half the pay. This means that the employee can take twice the time off that they have accrued at half the pay, meaning that they stay away from work for longer, but get the same amount of money from their employer. For example; Tony would usually get $500 for a week off during his annual leave, this year he applies for two weeks at half pay, meaning he gets to stay home for two weeks with $250/week instead of 1 week with $500. This needs to be approved by the employer and needs to start before 30th June.
SAFETY MEASURES
Employers should have a plan for how to deal with COVID-19, including what to do if there is exposure to it in the workplace. Employers have to consult with the employees about the measures to be taken and things to consider are;
Is it possible for the workers to work from home?
What measures can be taken that will not affect other WHS?
How to make sure proper physical distancing is done (pull desks away from each other, breaks at different times, meetings over Skype etc).
What information is given the employees about when to stay home, what the symptoms are and what their options are in these times?
JOBKEEPER PROGRAMME. This is an initiative to help businesses keep their employees through subsidising their wages if necessary. Only eligible businesses and sole traders can apply for this scheme, and they can only do so for eligible employees. To be eligible the business must register for the scheme online and meet certain criteria. These criteria are;
Having carried out business mainly in Australia that was not a not-for-profit organisation on 1st March 2020;
Employed at least one eligible employee on 1st March 2020;
Your eligible employees are currently employed by your business for the fortnights you claim for (includes re-hired staff and stood down employees);
Your business is not in one of the ineligible categories (as found on https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Eligible-employers/#Ineligibleemployers)
Have had a downturn due to COVID-19 of 30% or more if aggregated turnover is less than $1 billion;
50% or more if aggregated turnover is higher than that;
15% or more if ACNC-registered charity other than Universities and schools.
The downturn will mainly be calculated based on GST turnover, how to calculate the aggregated turnover can be found on the ATO website, this is also where you will find the online form to register for the scheme.
The employee for whom you apply for the scheme needs to be eligible as well. To be eligible for the scheme, they must;
Be employed by you (including those re-hired or stood down).
Have been either:
a permanent full- or part-time employee as of 1st March 2020, or
a long-term casual employee, not permanently employed elsewhere (employed by you on a systematic and regular basis for at least 12 months) as of 1st March 2020.
At least 16 years of age on 1st March 2020.
Be an Australian resident in accordance with the Social Security Act 1991, (generally an Australian citizen, permanent resident, or resident for tax purposes and hold a Subclass 444 visa).
Where not on governmental parental leave or dad and partner pay, or getting worker’s compensation payments during the JobKeeper fortnight.
Agree to be nominated by you.
Employees cannot get JobKeeper payments from more than one employer.
Do you have any questions regarding this? Or feel that you need help to figure out what applies to you and how to move forward? We are here to help! Please feel free to contact us, and we will help you navigate through the jungle of employment rights and obligations to find solutions best suited for you.
