21 April 2020
As anticipated, the main focus of the Employment sector this week has been on the newly introduced JobKeeper scheme.
Although there is still more information to be released, the JobKeeper rules have been re-released and the Australian Tax Office (ATO) has published more formal and comprehensive guidance about the steps that employers must take to successfully apply for and receive the JobKeeper payment. This guidance is available here and on the ATO website.
Some other key developments in the employment space this week are outlined below.
A reminder that at any time you can visit our Wellbeing and Culture page, view our webinar series, listen to our podcast channel or read the most relevant COVID-19 legal insights from across our global network.
JobKeeper employee nomination notice and dispute application form released
This week, the ATO released the JobKeeper employee nomination notice. This notice, which can be found here, should be completed if employees want their employers to receive JobKeeper payments for them.
Additionally, the Fair Work Commission (FWC) has now released the new Form F13A – Application for the Commission to deal with a JobKeeper dispute (coronavirus economic response).
Please see a copy of the application here and on the FWC website.
The FWC has the power to make any order it considers desirable in relation to a JobKeeper dispute, including an order to set aside, vary or give effect to a JobKeeper enabling direction (such as a direction about the location of work, or a request that an employee take annual leave).
Contrasting FWC decisions lead to confusion on whether employers can reduce redundancy payouts
Late last week, the FWC handed down to two contrasting decisions on the ability of small businesses to reduce redundancy pay due to the impact of the coronavirus crisis.
In one decision, Commissioner Sarah McKinnon approved Mason Architectural Joinery’s application to cut a worker’s seven-week redundancy payout to just one week on the basis that the small Sydney-based business could not afford to pay the full redundancy period due to a downturn in work.
However, in another decision, Deputy President Richard Clancy rejected Worthington Industries’ bid to cut four weeks’ redundancy pay down to one week because its forecast losses from the pandemic did not justify the cuts. Instead, the FWC raised the possibility of Worthington Industries applying for the JobKeeper subsidies to ease the financial pressure.
Please follow the links here and here to access these decisions.
Amendments to the Fair Work Regulations
The Fair Work Amendment (Variation of Enterprise Agreements) Regulations 2020 (Cth) commenced on Thursday, 16 April 2020.
This Regulation amends the Fair Work Regulations 2009 (Cth) to temporarily shorten the period that employees must have access to a copy of a proposed variation of an enterprise agreement, and before which employees must be notified of the details of the vote on the variation, from seven calendar days to one calendar day.
Please see a link to the new Regulation here.
COVID-19 Webinar series: Tax and Employment Issues of JobKeeper Payment (Australia)
This week’s webinar hosted by Carolyn Pugsley (Executive Partner and Joint Global Head of Practice in our Corporate team) discusses the employment and tax issues associated with both claiming and administering JobKeeper:
- Determining if you are eligible for JobKeeper
- Claiming the benefit
- Flow-on tax consequences
- Implications of JobKeeper payments for employers
- Panellists include Andrew Howe and Daniel Sydes (Partners of Greenwoods & Herbert Smith Freehills, our affiliated tax advisory firm) and Anna Creegan (Partner in our Employment, Industrial Relations and Safety team).
Click here to access the webinar.
Next week’s webinar will consider disclosure and directors duties, insurance and class actions.
Pressure Points: Managing liquidity
With revenues contracting, firms are considering options to manage liquidity such as accessing debt facilities and government support, equity capital calls, insurance claims and asset disposals. Our interactive guide explores each area in greater depth and outlines practical steps to consider. To learn more click here.
For further information, please contact:
Anna Creegan, Partner, Herbert Smith Freehills
