This has the potential to turn into an absolute dumpster fire of unnecessary litigation if the govt doesn’t take steps to address this now 1/12 https://twitter.com/ak_pennington/status/1266918607318999040
The article suggests that employers have a right to make deductions to employees’ pay to recover overpayments of jobkeeper. This is only correct in very limited circumstances. If your employer presses you to enter into a deduction arrangement , seek advice from your union. 2/12
In the event that it turns out that an employer was not entitled to jobkeeper, I’m not sure that it’s going to be cut and dried that a debt will be owed by employees anyway, even under the ATO’s current stated approach. 3/12
This is because, for a start, where an employer is entitled to jobkeeper for its employees, there are accompanying rights to issue directions to shorten employees’ hours and direct them to do different work at different locations, amongst other things 4/12
The absence of an entitlement to jobkeeper will mean that an employer will not have been entitled to issue such directions. 5/12
For example, Where a perm employee on jobkeeper was ready, willing and able to work but was stood down for all or part of their hours, there’s going to be an argument that the employee would have been entitled to full ordinary pay, as the employer had no right to stand down. 6/12
In that case, there may have actually been an underpayment by an employer. 7/12
Even if this doesn’t arise, an employee may have grounds to resist the debt if they can demonstrate that they relied on the employer’s representation in making decisions as to, for example, whether to take on or look for another job. 8/12
This will get hugely complicated and be detrimental for employees AND employers. 9/12
The govt’s current plan appears to be consistent with how they’ve dealt with employer’s liability in respect of casual employees: pretend the problem isn’t there, blame unions when they point out the issue and bail out employers when they rely on the govt’s crap advice. 10/12
And this is before we even get started on how objectionable it is that employees, working and acting in good faith, get stuck with all the risk 11/12
It’s a lazy, unsustainable and irresponsible approach from the govt, but what’s new. 12/12
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