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08 May 2020

In the interim

Employment Law
Federal

Asked

Employment – JobKeeper scheme and power to stand down under COVID-19

My client employs a small staff and though there has been a downturn there has not been a stoppage of work. New JobKeeper laws have been passed. What powers do employers now have regarding standing employees down?

Answered

Thank you for the question.

The following is an excerpt from the By Lawyers publication Dealing with COVID-19 legal issues – Some practical information:

The new powers include new options for workforce flexibility and reducing workforce costs, such as reducing working hours and having employees take annual leave. Employers need to qualify for the JobKeeper scheme to be able to access the new powers. …

Previously an employer could only reduce an employee’s hours of work by agreement with the employee. Now an employer can give an employee a direction in writing to stand down by:

  • not working on a day or days on which the employee would usually work;

  • working for a lesser period than the period which the employee would ordinarily work on a particular day or days; or

  • working a reduced number of hours compared with the employee’s ordinary hours of work, which may be nil.

An employer can only do this if:

  • the employee cannot be usefully employed for the employee’s normal days or hours during the stand down period because of changes to the business attributable to the COVID-19 pandemic or government initiatives to slow the transmission of COVID-19; and

  • the implementation of the stand down direction is safe, including having regard to the nature and spread of COVID-19.

Employers need to satisfy a consultation requirement that includes notifying the employee at least three days in advance, or a lesser time by agreement, before making a JobKeeper direction. No forms have been prescribed for this purpose. By Lawyers has example content letters, which are available from within the commentary.

For more information about JobKeeper eligibility please refer to the above commentary, which is available in all guides.

Regards

Mentor