UPDATE: Are your casual employees actually casual?
Back in May we posted a blog about the Full Court of the Federal Court of Australia's controversial ruling in the WorkPac Pty Ltd v Rossato [2020] FCAFC 84 case. In recent weeks, WorkPac have sought leave to appeal to the High Court of Australia, challenging the finding as businesses around Australia hold their breath.
WorkPac claim that if the ruling is not altered, it "would overturn the commonly accepted understanding of casual employment in Australia, where employees receive a higher rate of pay in lieu of leave entitlements", and ultimately expose “tens of thousands of Australian businesses to double dipping backpay claims for up to six years".
During the Federal Court case, Industrial Relations Minister, Christian Porter, intervened to support WorkPac. He has since confirmed the Government will intervene in an appeal, declaring the Federal Court's decision as the creation of "confusion and uncertainty&ellipsis; during a period where businesses are facing their greatest ever challenge".
Mr Porter has not disregarded further action by the government, saying it may "be necessary to consider legislative options". Australian Resources and Energy Group AMMA have backed this position, calling on Parliament to act immediately though legislative change, not wait on the lengthy process of a High Court appeal.
As the uncertainty increases, our business lawyers can assist you in navigating the difficult period in which we wait for clarification. If your business employs casuals who work regular and systematic hours, get in touch with Siobhan Liston (03 5445 1067) or Lachlan Edwards (0427 916 442) to take action in minimising any potential costs for your business in the future.