As a result of the ongoing coronavirus pandemic, the industrial landscape is changing at a rate not seen before. Businesses are trying to stay afloat, look out for its employees as best as possible and aim for future prosperity beyond the current crisis. Understanding how these objectives can be achieved whilst continuing to maintain compliance with rapidly changing workplace laws is posing a real challenge to many.
Unfortunately, for many employers, decisions on redundancy have had to be made. Prior to the introduction of the "JobKeeper Enabling Stand Down" many employers faced no option but to make employees redundant. Recently the
The two decisions were delivered on the same day by the FWC and had contrasting outcomes. In
Mason Architectural Joinery made two employees redundant in early February as part of a decision to reduce costs in light of the coronavirus pandemic. The employer had received no income for the previous two months. In reducing the payment for Mason Architectural, Commissioner
The Commissioner acknowledged that the former worker was paid three weeks' notice and subsequently found another job on better hourly rates, and accepted that the employer faced "significant financial strain" meaning it could not afford to pay the full seven week redundancy amount. Therefore, it was determined that it was appropriate to reduce the amount of redundancy pay to 1 week's pay.
Conversely, Deputy President
Similarly to Mason Architectural,
However, in making his decision, Deputy
Deputy
Although the Deputy President highlighted the likely eligibility of the employer for the JobKeeper payments, which would have equated to approximately 90% of the worker's salaries, and an offer to hold the matter over until such eligibility had been determined, the employer considered that the uncertainty of what might happen in six months' time if the business had not recovered led it to conclude that the better option for
What these two decisions highlight is the need to obtain expert advice prior to acting. The workplace landscape is rapidly changing and now more than ever employers need to ensure they comply with these changes.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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