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What the end of JobKeeper means for your business

09 March 2021

We take a look at some of the practical implications of the JobKeeper scheme’s impending conclusion on 28 March and provide answers to your most frequently asked questions.

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One year on from the launch of the JobKeeper Program, businesses will no longer be entitled to a fortnightly wage subsidy, as flexibility provisions will also come to an end.

Here is what your business needs to know before 28 March:

JobKeeper enabling directions

One measure to help employers combat the adverse effects of the COVID-19 pandemic was the temporary amendment to the Fair Work Act 2009 (Cth) (“FW Act”) which gave employers certain flexibilities by issuing a ‘JobKeeper enabling direction’. The flexibilities were designed to override any applicable employment contract, modern award and/or enterprise agreement. The directions could require employees to work reduced hours or days, undertake alternative duties or work at an alternative location.

From 29 March 2021 employees will revert to their substantive terms and conditions. If a business is still experiencing the effects of the COVID-19 pandemic and, for example, needs to maintain a reduction in hours, the employer should seek agreement from staff to do so. In the absence of agreement, the business may need to explore options available under the contract and other applicable industrial instruments.

While there is no strict legislative requirement that employers must notify employees of the end of JobKeeper payments or JobKeeper enabling directions, it is recommended that employees be notified nonetheless. Template letters have been drafted for use, links are below.

Requests to take annual leave

The JobKeeper scheme permitted employers to issue employees with a request to take annual leave. This request could not be unreasonably refused. When the scheme ends, this temporary provision will also cease operation.

Employers must comply with the FW Act will which requires the employer and employee to agree to any period of annual leave being taken. An employer will only be able to direct an employee to take annual leave if there is a relevant provision in the FW Act, or a modern award/enterprise agreement which permits it.

Redundancy/change in hours

The end of the JobKeeper scheme will require businesses to reassess their operations and cashflow. This assessment will include identifying if certain roles are still required, how and where roles can be performed and the number of hours required to meet operational requirements.

If a business is considering making a change which will impact employees, employment legislation, modern awards and enterprise agreements dictate certain procedural steps take place. These include complying with notification and consultation obligations, considering redeployment opportunities and in most circumstances notice and severance pay requirements.

How can we assist your business?

Managing change can be costly and challenging and must be managed well to minimise risk. Regardless of the size of your business, your industry or unique issues, our workplace relations consultants are experienced change management experts who can help you every step of the way. Contact our Workplace Relations Advice Line on 03 8662 5222 to speak to our team about procedural requirements post-JobKeeper.

For assistance on any aspect of your employment obligations, please call the Victorian Chamber Workplace Relations Advice Line on 03 8662 5222.

For strategic workplace relations and employment law compliance (e.g. restructure, redundancy, representation at the Fair Work Commission, modern award interpretation, leave entitlements, dismissal and termination of employment advice) contact our Workplace Relations Consulting team on 03 8662 5222 or email workplacerelations@victorianchamber.com.au.

If you need advice from a business leader on managing your business during periods of lockdown, or completely changing your business model to survive, you can access the services of an experienced professional to help navigate these challenges through the Business Recovery and Resilience Mentoring program.

This program is delivered by the Victorian Chamber, in partnership with the state government, and is free for eligible Victorian small businesses.

Where to get financial support

The Victorian Chamber is working hard to support businesses through what may be a challenging time.

Please contact our membership team on 03 8662 5333 or membership@victorianchamber.com.au if you have any questions or are concerned about the financial impact this may have on your business. 

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