No longer Eligible for JobKeepers Wages Subsidy?
Many employers who previously qualified for the original JobKeeper Wages Subsidy may not be eligible for the second stage of JobKeeper.
What does this mean?
As from 28th September 2020:
- Need to un-nominate employees in your payroll system as you can no longer obtain the JobKeepers Wages Subsidy;
- The Industrial Relations flexibilities under the JobKeeper Scheme will cease to apply (unless the organisation is a “Legacy Employer”) and employers revert to normal Award, EBA and Fair Work Act provisions.
- The following no longer apply for the Employer:
- JobKeeper enabling stand down provisions (different to normal Fair Work provisions) ie. a direction to work less or no hours;
- JobKeeper enabling directions ie. direction to change duties or work location;
- Make arrangements with employees to change their days or times of work ie. an agreement for employees to work different days
- requests of employee to reduce Annual Leave (including at half pay) – now the normal Fair Work / Award/ EBA rules apply for directing an employee to take leave.
Legacy Employers
- If the Employer qualifies to be a “Legacy Employer” no longer on JobKeeper wages subsidy (or chooses not to participate) but has a 10% decline in turnover each quarter to previous years may continue SOME of the JobKeeper Direction and Agreement provisions:
- Grater employee consultation and enhanced notice is required;
- A Legacy Employer will need a Certificate from an Eligible Financial Service Provider OR a Statutory Declaration for small businesses (small businesses employ less than 15 employees).
- ‘Legacy Employers’ will be required to advise Employees who are subject to a JobKeeper Enabling Direction or Agreement written notice weather:
- They have obtained a Certificate or Statutory Declaration for the relevant quarter
- That the JobKeeper enabling direction or agreement will continue or end.
- Directions or agreements made prior to 27th September 2020 will need to be re-issued or make new directions or agreements
Please obtain the latest information from the ATO: https://coronavirus.fairwork.gov.au/coronavirus-and-australian-workplace-laws/pay-and-leave-during-coronavirus/jobkeeper-wage-subsidy-scheme/legacy-employers/jobkeeper-enabling-directions-and-agreements-for-legacy-employers
Continuing on with JobKeeper?
Some employers remain eligible for JobKeeper 2.0.
What does this mean?
- Need to prove eligibility via the applicable turnover test (seek advice from your Accountant);
- Work out which subsidy that each ‘eligible employee’ will receive for the business (ie. $1,200 for 20 hours or greater, or $750 for less than 20 hours average based on hours for the 28 day pay period ‘Reference Period’).
- Employees must be advised in writing within 7 days from advising the commissioner which payment applies to them;
- JobKeeper Industrial Relations conditions still apply to the employer;
- As from 28th September 2020, a JobKeeper business can no longer request an employee to take annual leave (including at half pay).
- The Industrial Relations flexibilities under the JobKeeper Scheme will still apply:
- JobKeeper enabling stand down provisions (different to normal Fair Work provisions) ie. a direction to work less or no hours;
- JobKeeper enabling ‘directions’ ie. direction to change duties or work location;
- Make ‘agreements’ with employees to change their days or times of work ie. an agreement for employees to work different days
JobKeeper extension is also available (PDF 361KB)
https://www.ato.gov.au/General/JobKeeper-Payment/JobKeeper-extension-announcement/
JobKeeper extension – what you need to do as a business or not-for-profit factsheet (PDF 269KB)
Just Starting JobKeepers under 2.0
The JobKeeper scheme will remain open to new participants, provided they meet the eligibility requirements for the relevant period.
There are obligations around:
- monthly reporting turnover and wages to the ATO;
- paying JobKeeper wages subsidies in advance;
- notifying employees in writing that the business is now a JobKeeper Employer and the individual employee’s wages subsidy;
- Consultation with employees when using any JobKeeper ‘enabling direction’ or ‘agreement’.
Businesses now qualifying for the JobKeeper wages subsidy will have access to increased industrial relations flexibilities:
- JobKeeper enabling stand down provisions (different to normal Fair Work provisions) ie. a direction to work less or no hours;
- JobKeeper enabling ‘directions’ ie. direction to change duties or work location;
- Make ‘agreements’ with employees to change their days or times of work ie. an agreement for employees to work different days.
https://www.ato.gov.au/general/jobkeeper-payment/
If you would like assistance with: understanding new JobKeeper HR obligations or consulting with workers, general Human Resources or Workplace Health and Safety assistance, please call Hellen Ryan, Principal Consultant, phone: 0429 410 991 or Hellen@Solutions4HR.com.au