Employment and Labor Law

Since the JobKeeper extension took effect on 28 September 2020, many employers affected by the COVID-19 pandemic have been faced with a significantly increased wage cost in order to retain staff.

In the initial JobKeeper period, which ran from 30 March 2020 until 27 September 2020, eligible employees received $1,500 gross per fortnight irrespective of hours worked.

From 28 September 2020 until 3 January 2021, those payments have reduced to:

• $1,200 gross per fortnight for eligible employees who worked 80 hours or more per fortnight in the four weeks prior to 1 March 2020 or 1 July 2020 (depending on the employee’s commencement date); or
• $750 gross per fortnight for eligible employees who worked less than 80 hours per fortnight in the four weeks prior to 1 March 2020 or 1 July 2020 (depending on the employee’s commencement date).

Although JobKeeper enabling directions allow employers to take various measures with a view to ensuring the financial viability of the business and avoiding the need to terminate the employment of staff, the increased wage costs now being faced by employers may prompt many to review their staffing needs.

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