COVID-19 Fair Work Act Changes for JobKeeper Scheme

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On the 9th April 2020, the Fair Work Act 2009 was temporarily varied to insert a new part, Park 6-4C, to help employers who qualify for the JobKeeper scheme and therefore support the implementation.

Not that we are Accountants, so please check with yours but as an introduction, the JobKeeper scheme allows an employer to apply for the JobKeeper payments if their GST has fallen (or they believe will fall) by 30% for those that have an aggregated turnover of less than $1 billion or 50% for those with aggregated turnover of $1b billion or more, or if their business is not subject to the Major Bank Levy.  The JobKeeper payment is $1,500 per fortnight for a maximum of 6 months.

Eligible Employees are those:

  • Currently employed, as at 1st March 2020 (including those stood down or re-hired)
  • Full time, Part time, Long term casuals (regular & systematic employed longer than 12 months)
  • At least 16 years of age
  • Australian Citizen, holder of permanent visa or a special category (subclass 444) visa holder at 1 March 2020
  • Resident for Australian tax purposes as at 1st March 2020, and
  • Not in receipt of JobKeeper payment from another employer.

Eligible Employees include:

  • Employee on parental leave from their employer
  • Employees receiving workers compensation if they are working, even if on reduced hours.

However, employees NOT eligible are those receiving parental leave pay from Services Australia and employees receiving workers compensation who are not working.  Those employees who have been made redundant and not rehired are also NOT eligible.

The Employer must notify all eligible employees that they have applied for the JobKeeper payment in respect of them and pay the eligible employee at least $1,500 (before tax), even if they were earning less before.

These new provisions in the Fair Work Act 2009 apply to employer who have qualified for the JobKeeper scheme and their eligible employees.   These new provisions allow:

  1. Employers to make temporary and partial stand downs in certain circumstances
  2. Employers to temporarily alter employees’ usual duties and locations of work in certain circumstances
  3. Employers and employees to agree on altering an employee’s days and times of work and use of annual leave in certain circumstances.

1. The new provisions enable a qualifying employer to direct an employee to work few hours or days (including no hours), called ‘JobKeeper enabling stand down directions’, only if employees can’t be usefully employed for their normal days or hours because of changes to business attributed to the coronavirus pandemic or government initiatives to slow its transmission. The employer must provide the direction in writing and make sure the direction is reasonable in the circumstances (for example the employee’s caring responsibilities.  Employers must notify and consult with employees at least 3 days before issuing the direction and keep a written record of the consultation.

While employees are on the JobKeeper enabling stand down, they can request to take on secondary employment, training or professional development for the duration of the stand down.  Employers much consider these requests and can’t unreasonably refuse them.

2. Again, for qualifying employers, they can direct an employee in writing to change their duties and work location including working from home, referred to as, ‘JobKeeper enabling directions.’ Employers need to ensure the direction:

  • Is reasonable, including in relation to an employee’s caring responsibilities
  • Modified duties are within the employee’s skill & competency and that the employee has any required licences or qualifications
  • Duties are safe considering the nature and spread of coronavirus
  • Duties are reasonable within the scope of the business’ operations
  • Any new location is within a reasonable travelling distance

And again, the notification and consultation must be done at least 3 days before issuing the direction and keep a written record of the consultation.

3. These new provisions also allow, again for qualifying employers only, to;

  • reach agreement with employees to perform their usual duties on different days or times than usual. Considering again safety with the nature and spread of coronavirus and is reasonably within the scope of the employer’s business operations and the employees usual work hours aren’t reduced (unless enabling the ‘JobKeeper stand down direction’ as described above in point 1.)
  • request an employee to take paid annual leave (provided a balance of 2 weeks is kept), or agree to the employee taking annual leave at half their usual pay rate and effectively therefore twice as much leave. An employee can’t unreasonably refuse a request from their employer to take leave.

However, now is the time to consult and communicate with your team, regardless of legislative provisions.

If you require advice on these provisions or further assistance with the management of your staff during this time, please let us know.    We are here to help.  We remain available via email or phone – leisa.messer@hrbd.com.au or 0401 271 616 | 07 3890 2066.

 

We hope you are OK.  Take care.  Keep safe.

The Team at HR Business Direction