CORONA VIRUS – WHAT TO DO NOW
This blog is in response to numerous questions I’m receiving from clients across Australia about what to do with employees during the Corona Virus period.
As an employer you have a duty of care to all employees to provide a safe and healthy work environment. As there is a lot of information out at the moment and each situation is different in business, please feel free to contact me on either on ahendy@hendyhr.com.au or 0411 254 865 for clarification or concerns. We have extended business hours and our phones will be on each evening until 9pm for your enquiries.
Keep Calm and Communicate
Easier said than done! However, it is very important to take deliberate and measured steps as it relates to your employees. Be on the front foot with what you need to do and not in catch up mode. Communicate, communicate and communicate with employees. Send out memo’s, social media updates as to the health and safety of your business and clarify details to employees about access leave entitlements.
Below is the link for a fact sheet from Fair Work Australia which will answer several of your questions with various scenarios as to what type of leave applies and what option of arrangements you can make with employees.
Scenarios and Leave Types
As usual, the key focus is communication with your employees and coming to agreeable arrangements for continued employment where possible.
Most of these scenarios will apply to permanent employees who have access to leave benefits.
Casuals are entitled to some leave benefits such as Long Service Leave if with the employer for 5-10 years pending which State or Territory the business is in. A few quick answers to scenarios below:
Employees that are sick and being tested for Corona Virus should not be allowed back to the workplace unless a doctor has given them a successful health assessment and fit for work status. If sick, then Personal Leave applies.
Employees that are not sick but being tested for Corona Virus because they have been in contact with someone who is sick, should not be allowed back to the workplace unless a doctor has given them a successful health assessment and fit for work status.
If they test positive, they are to remain at home in isolation and this period is Personal Leave until they are successfully able to return to work with a fit for work status.
If the employee after being tested is fit for work, the period of testing and absence from work is either leave without pay, Annual Leave or Long Service Leave. If they directed by the employer to be tested and worked from home during this period as normal, then ordinary pay would apply.
Employees that are required to stay at home and care for those that are sick will access Carer’s Leave entitlements.
Employees that must stay at home to look after their children as the school has closed will either be paid as normal (only if it’s agreed as a normal working period and they are working legitimately from home) or they will access leave without pay, Annual Leave or Long Service Leave. It will depend on the arrangement made between the employer and employee.
Employers that direct employees to stay at home where there is no imminent danger or risk and the employee is ready and able to work, will be paid as normal.
Employers that direct employees to stay at home because of imminent danger and risk and because they are following guidelines set out by the Australian Government, will enable employees to access leave without pay, Annual Leave or Long Service Leave, pending the arrangement with the employer.
There are many different scenarios and situations. It is not black and white. If you are unsure, call us and we can assist. All arrangements made between the employer and employee should be in writing. It’s a time to ensure that you have employment contracts that are clear and employment policies that outline leave entitlements and practices.
Financial Stimulus Package and Financial Options with Employees
The Australian Government has announced a stimulus package and financial support for businesses. Below is the link for full details on benefits for business. In short, this benefit to business will be accessible when your BAS is lodged through your financial accountant or similar.
https://treasury.gov.au/coronavirus/businesses
Balance Accountants service the Central West of NSW, Australia have provided on their website and social media pages information about the funding from the government.
Aside from the Australian Government stimulus package there are things that you can do if you are financially struggling to keep your employees.
Redundancy - If there is a downturn in your business and you cannot support the payment of wages of your employees then redundancy is one option. It’s very important that you follow the appropriate consultation requirements for redundancy.
Permanent to Casual - Redeployment to casual status from permanent employment could be another option.
Leave Entitlements - If you have employees that have excessive Annual Leave entitlements or Long Service Leave entitlements, it is an opportunity to encourage employees to access leave benefits and help your bottom line of the business until this period passes. Although this is not ideal, it is a realistic option for employers.
Hendy HR is here to support you with your employees during this period. Employees are your best business asset! Call us now on 0411 254 865 or email for an appointment at ahendy@hendyhr.com.au