COVID-19: The Fair Work Act, Stand Downs and The JobKeeper Subsidy
The current situation facing the Australian workforce has seen the Federal, State and Territory governments ramp up their response to the COVID-19 pandemic, with several changes to workplace legislation enacted over the last couple of weeks.
These new legislations are aimed at alleviating the strain on employers and employees alike, however, many small businesses are finding it difficult to understand how these changes apply to them, and what their rights and responsibilities are to their staff.
While many businesses have moved to remote working situations, certain industries that are not considered essential services are being forced to look at alternative employment arrangements.
By understanding the relevant legislation, you can retain as many of your team members as possible and continue to remain financially viable. Where staff stand-downs are unavoidable, you will ensure you are protected from any potential legal implications.
Here are the most up to date changes to the Australian Fair Work Act and how they relate to small businesses.
The Fair Work Act and JobKeeper Payments
The Fair Work Act sets out the terms and conditions of employment along with the industrial relations obligations for most employers across Australia (although there are several exceptions to these rules).
On April 9, 2020, the legislation was amended to support the implementation of the JobKeeper wage subsidy scheme.
The JobKeeper subsidy has been created by the government to assist eligible businesses and not-for-profit organisations who have been significantly impacted by the coronavirus.
Qualifying businesses can claim a payment of $1500 per fortnight for each eligible employee.
JobKeeper payments will be paid to the employer by the ATO every month in arrears.
While the payments are applicable from the fortnight starting March 30 2020, it is important to note that the payments will not begin being paid to employers until May 2020.
Other changes to the Fair Work Act include:
The provision for a qualifying employer to make an agreement with their employee to work different days and times. This is conditional on the changes being safe with consideration to the nature and spread of coronavirus and reasonably within the scope of the employer's business operations.
Changes to stand down laws, including asking a worker to reduce the hours or days they work per week.
JobKeeper Enabling Stand Down Directions
The new provisions under the Fair Work Act now enable qualifying employers to direct their employees to work fewer hours than their original contract stipulates.
This is known as ‘JobKeeper enabling stand down directions’.
Employers can only give employees this direction if one of the following applies:
The employee can no longer be usefully employed for the previous hours they were working, because of changes in the business due to the impact of COVID-19.
The employee is no longer able to work because of enforceable government directives and initiatives implemented to slow the spread of coronavirus.
Employers must ensure that in making this direction, they are not acting unreasonably, and must take into account all mitigating circumstances.
If an employer decides, after due consideration, that they need to enact a JobKeeper enabling standdown, they need to:
Make the direction in writing
Consult with the employee (or their representative) at least three days before issuing the direction (unless the employee agrees otherwise)
Keep a record of the above consultation in writing
More information
For Employers
Employers can register for the JobKeeper scheme on the ATO website.
For Employees
Employees can access relevant information on the JobKeeper scheme on the ATO website.
At Infinity HR, we provide confidential advice to ensure small to medium businesses understand how the latest Governmental changes apply to their companies. We can assist in helping to implement new changes or provide a detailed compliance review of your current practices.
To help business owners navigate the HR logistics of changing working conditions, we are offering a free phone consultation with HR expert, Iolanda Hazell, Director and Founder of Infinity HR. Call now on 0400 489 743.
References
JobKeeper Changes to the Fair Work Act
Disclaimer
The information provided on our blog is designed to provide helpful information, and does not constitute legal advice, and not intended to be a substitute for legal advice and should not be relied upon as such. You should seek legal advice in relation to any particular matter you or your organisation may have.