Managing Workplace Obligations During COVID-19
There are many questions in regard to managing workplace obligations during these unprecedented times. In this Tips and Trips, we have collated a number of the most frequently asked questions we are receiving.
Can I reduce the hours of work or pay arrangements of my employees?
If you need to reduce the hours of work of an employee, you are able to do this as long as you follow the provisions of ‘consulting about major workplace change’ that can be found in the Fair Work Act and relevant Modern Awards. There may also be further information under an Enterprise Agreement or an employment agreement.
Reducing pay arrangements is different. Reducing the pay arrangements of an employee can only be done upon mutual agreement between the employee and employer (the employer cannot make this decision alone); and only if the rates of pay still meet or are above minimum requirements under the relevant Award.
I need to permanently let some of my employees go – how do I action this?
If there are roles in the business that are redundant, you need to follow the procedures under ‘consulting about major workplace change’ in the Fair Work Act and relevant Modern Awards to terminate their employment. You will need to provide notice (or payment in lieu of notice) and it is possible that you will need to provide severance pay (depending on the size of your business and employee eligibility criteria). Other items in a final termination payment will include the employee’s unused accrued annual leave entitlement, any time in lieu owed and long service leave, if applicable.
Can I stand down my employees without pay?
Under the Fair Work Act, there are strict guidelines on when an employer can stand down an employee without pay – if there is a stoppage of work for which the employer cannot reasonably be held responsible and usually this has been linked to broken machinery or inclement weather.
Fair Work suggests that there may be some instances where employers can stand down employees and these include:
if there was an enforceable government direction requiring the business to close (which means there is no work at all for the employees to do, even from another location)
if a large proportion of the workforce was required to self-quarantine with the result that the remaining employees/workforce cannot usefully be employed
if there was a stoppage of work due to lack of supply for which the employer could not be held responsible.
There may also be other rules about standing down employees in enterprise agreements, employment contracts, Awards or workplace policies. However, if you feel you need to stand down employees due to a business downturn or because an employee has coronavirus, we recommend you seek legal advice. The risk of unlawfully standing down an employee without result in an employee recovering their unpaid wages in the future.
My employee cannot work because they need to care for their children due to forced school closures –how can I manage this?
Full time and part time employees are provided with 10 days personal leave per year and this comprises of both sick leave and carer’s leave. Fair Work has advised that a ‘school or childcare centre closing on short notice and for a short period due to concerns about coronavirus is an unexpected emergency for this purpose’. There is also the option of using any annual leave they may have accrued, and the other option is leave without pay.
My employees are working from home. What do I need to be aware of?
Regardless of the where work is performed, employers have a duty of care to ensure the safety and wellbeing of all workers, in both their physical and mental capacity.
It’s imperative for each business to consult with workers on any risks or hazards within the home working environment and to do what they reasonably can to manage those risks.
For example, risks could be related to a poor work environment and workstation set up or psychosocial risks such as isolation, workload, fatigue and issues relating to individual family circumstances.
Will WorkCover accept employee claims if they are diagnosed with COVID-19?
When deciding whether to accept a statutory claim for compensation, Insurers will want to be sure that the exposure occurred in the workplace, and that work exposure was a significant contributing factor to the diagnosis.
If my business directs an employee to undergo testing for COVID-19 and to stay at home as they are displaying symptoms such as coughing and a fever, will WorkCover cover their wages while they are in quarantine until their test results come back?
Workcover will only cover an employee’s wages during quarantine if the employee is diagnosed with COVID-19 and WorkCover accepts the employee’s lodged statutory claim.
Needing more help or assistance? If you would like assistance please contact our team of People Matters Advice advisors at AB Phillips, Monday to Friday between 9:00 am and 5:00 pm AEST by phone on 1300 208 828 or by email: advice@abphillips.com.au
Please note information provided is accurate as at 1 April 2020. Information is provided as comment and should not be relied on as a substitute for detailed professional advice from AB Phillips or professional legal or financial advice on any particular matter. Where you would like additional information and support about the content in this document please contact AB Phillips.