Important changes to 103 modern awards and legislation in response to COVID-19 pandemic
What are the temporary changes?
Earlier this week the Fair Work Commission made changes to 103 Modern Awards to provide an estimated 4 million plus employees with access to unpaid pandemic leave and provide them with the ability to take annual leave at half pay.
Further, the NSW Government recently passed legislation to amend the Long Service Leave Act 1955 (NSW), and on 30 March 2020, the Prime Minister announced a $130 billion wage subsidy scheme.
Employers should ensure that they are familiar with these important changes which we detail below.
The changes include two weeks unpaid pandemic leave, noting that this unpaid pandemic leave can be undertaken in conjunction with the Job Keeper allowance. Employees taking unpaid pandemic leave cannot be forced to use up annual leave.
The second change is to be able to take annual leave at half pay by mutual agreement. For example, if an employee takes two weeks of annual leave, they would receive the same pay they are entitled to for one week’s annual leave, and only one week of annual leave would be debited from the employee’s annual leave balance.
If employees take annual leave at half pay, the employer must record the agreement in writing and keep a copy of the agreement as an employee record.
Employer Frequently Asked Questions
What are the 103 Modern Awards that have been varied at the initiative of the Fair Work Commission?
The modern awards include:
Banking, Finance and Insurance Award 2020
Children’s Services Award 2010
Clerks - Private Sector Award 2010
General Retail Industry Award 2010
Graphic Arts, Printing and Publishing Award 2010
Manufacturing and Associated Industries and Occupations Award 2010
Miscellaneous Award 2010
Social, Community, Home Care and Disability Services Industry Award 2010
To find out whether these changes affect your business call ISOsafe on 1300 789 132.
When do the changes apply?
The changes are in effect now and at this stage, will be until 30 June 2020. The Fair Work Commission may extend this time period, however at this point in time, the new Schedule X will cease after 30 June 2020.
The new Schedule X in the 103 Modern Awards apply from the employees first full pay period on or after 8 April 2020 until 30 June 2020.
Who can access unpaid pandemic leave?
All full-time, part-time and casual employees can access this leave. Employees do not have to accrue it.
Can an employee take more than two weeks pandemic leave?
By agreement with the employer, employees may access more than two weeks unpaid pandemic leave.
Who can take annual leave at half pay?
Employees who have annual leave accrued (full-time and part-time only) will be eligible to take annual leave at half pay.
Are the changes all the same?
The 103 Modern Awards that have been varied to include the new Schedule X – Additional Measures During the COVID-19 Pandemic all include the same provisions.
Need more help?
ISOsafe are helping employers and businesses to manage their staff through the COVID-19 pandemic by providing advice and guidance on a range of matters from redundancies to cross skilling workers to ensure the best possible outcome for employers and their staff. Call us today on 1300 789 132.