News

Preparing for Level 3 will be no easy task.  It certainly will not be business as usual. You have a few days to plan how you will do this.

All businesses operating under Level 3 must have a COVID-19 safety plan that sets out how they will operate safely. Worksafe is all over this; and has developed a plan applicable to all businesses. Most industry groups have also been working on plans for their particular sector, which you should review.  The key issues to consider in your plan are:

1. Risks of re-starting 
2. Information for workers to keep them safe 
3. Ensuring workers are well and able to work 
4. Ensuring workers remain safe at work
5. What to do in case of suspected exposure 
6. Review process
7. Impact on business activity

Slipping under the radar at the end of last week was the Epidemic Preparedness (Employment Relations Act 2000 - Collective Bargaining) Immediate Modification Order 2020. Its purpose is to ensure that no party to collective bargaining is disadvantaged by the COVID-19 lockdown.

On 20 April, the Government intends announcing its plans for lifting Level 4.  While nobody expects that to occur before 22 April, there is growing pressure from many quarters to move to Level 2 as soon as possible so the economy can start to flow.

Your obligations under the wage subsidy scheme depend on whether you applied before or after 4pm on 27 March (ie date of application, not date of receipt of payment).  

The scheme focuses on three groups of workers in essential businesses:

1. People who are self-isolating in accordance with public health guidance because they have COVID-19, or have come into contact with someone who has COVID-19 (or have a dependent they need to care for who is sick or self-isolating);
2. People at higher risk* if they contract COVID-19,
3. People who have household members who are at higher risk* if they contract COVID-19, to reduce the risk of transmitting the virus to them.

*At risk groups are:

• Those over 70. 
• People with medical conditions: Underlying medical conditions increase vulnerability to COVID-19, including respiratory conditions, such as COPD (Chronic Obstructive Pulmonary Disease), heart conditions, high blood pressure, kidney problems and diabetes.
• People undergoing a treatment for cancer and blood conditions that affect people’s immune systems and makes them more vulnerable to COVID-19.
• Pregnant women, although its uncertain if pregnant women are impacted by COVID-19 in the same way as other people.
• People without easy access to healthcare.

This month we have three public holidays:

• 10 April – Good Friday
• 13 April – Easter Monday
• 25 April – Anzac Day.  This will transfer to Monday 27 April for people who don’t work on 25 April.

I have read a number of commentaries by politicians, bureaucrats, lawyers and others about how employers should be complying with their employment law obligations during the lockdown. It is clear that most of these people are not directly affected by the situation and have not had to deal with the reality of seeing their business rapidly disappear.

Previously the Government’s advice was that employers must pay the full amount of wage subsidy to the employees for whom it was claimed. This created a situation where some employees could receive more than they otherwise would have if they had worked normally.

Since 4.00 pm on 27 March: 

1. To obtain the subsidy you still need to establish a 30% drop in income, or be projecting that to occur in any month between now and June. 
2. It is not compulsory to pay your employees 80% of their previous earnings.  However, if you receive the subsidy, you must use best endeavours to pay employees at least 80% of their pre-COVID-19 earnings for the 12 weeks period of the subsidy.
3. However, if you can’t do that you must, as a minimum, pass on the entire subsidy to every employee for whom you claimed it.
4. You must keep those employees employed for 12 weeks.
5. The amounts are unchanged and paid in a lump sum covering a 12 weeks period.

It is obvious that the COVID-19 crisis will cause major damage to a very large number of businesses.  The most optimistic advice seems to be that this will run for at least 3 months, but even if that is the case, the recovery may take many more months, or even years in some cases.

The big question is what to do to limit the damage?

The Government has recently introduced the Screen Workers Bill into Parliament.  The Bill does not repeal the so-called Hobbit Law, but is consistent with the recommendations from the joint working party recommendations last year.