June 2020

Restructuring in a COVID World - What You Need To Know Expand article
Contract article

Key Themes

  • Current upswing in revenue attributed to pent up demand from Level 4.
  • June quarter GDP could be down 19% - so decline in discretionary spending expected.
  • Employer has a right to restructure - financial losses not a pre-requisite.
  • Comprehensive written proposal is essential to communicate and justify the plan.
  • Consultation period can be short – the quality of engagement is important, not the duration.
  • Feedback is huge - affected employees want to retain jobs because few other opportunities.
  • Predetermination an issue – but final decision does not have to be different from the proposal.
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Government Changes Rules for Wage Subsidy Extension Expand article
Contract article

The Government has today, announced changes in criteria to qualify for the COVID-19 Wage Subsidy Extension. 

The criteria previously required employers to demonstrate a 50% decline in revenue for the last 30 days prior to applying (in comparison to the same period in 2019). 

This has changed to a 40% decline in revenue for a 30 day period in the 40 days before applying (starting no earlier than 10 May 2020), compared to a similar period last year.

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