The Victorian government recently announced the launch of the ‘Victorian sick pay guarantee scheme’ for casual and contract workers. The first of its kind, the scheme will provide paid personal and carer’s leave to casual and contract workers who are otherwise often ineligible for paid time off when unwell or have to care for a family or household member.
Secure work Pilot scheme – paid personal leave
Following a consultation process since the announcement of the move to provide casual workers with paid sick leave in late 2020, the Victorian government announced the launch of the scheme in mid March 2022. The consultation process heard from employers and employees and the impact on the lack of availability of paid leave to cover absences due to illness/injury.
The consultation process heard that 84% of casual workers reported attending work even while sick.
That took on particular significance during the COVID-19 pandemic when workers were encouraged to stay home if unwell due to COVID-19. However, the practical reality of a loss of pay meant that some employees made choices that contradicted the public health advice. The scheme will operate for employees deemed in occupations vulnerable and vital.
Operation of the scheme
The scheme will initially operate for two years and be fully funded by the Victorian Government.
Eligible casual employees and contract workers will be entitled to:
- Five days paid personal/carer’s leave.
- Paid at the minimum wage rate.
Employees are to apply to the scheme directly for payment. Eligibility can be for personal illness/injury or that of a family or household member (as defined in the National Employment Standards). Employees have 60 days after their absence to make a claim and can claim for between 3 and 12 hours in a day (subject to a maximum of 38 hours in any one year).
Eligible employees
Eligible occupations for the scheme are*:
| Job | Type of work |
|---|
| Hospitality workers | Providing services to patrons of hotels, bars, cafes, restaurants, casinos and similar establishments. |
| Food preparation assistants | Preparing food in fast food establishments, assisting food trades workers and service staff to prepare and serve food, cleaning food preparation and service areas. |
| Food trades workers | Baking bread and pastry goods; preparing meat for sale; planning, organising, preparing and cooking food for dining and catering establishments. |
| Sales support workers | Providing assistance to retailers, wholesalers and sales staff by operating cash registers, modelling, demonstrating, selecting, buying, promoting and displaying goods. |
| Sales assistants | Selling goods and services directly to the public on behalf of retail and wholesale establishments. |
| Other labourers who work in supermarket supply chains | Including workers who fill shelves and display areas in stores and supermarkets; load and unload trucks and containers; and handle goods and freight. |
| Aged and disability carers | Providing general household assistance, emotional support, care and companionship for aged and disabled persons in their own homes. |
| Cleaners and laundry workers | Cleaning vehicles, commercial, industrial and domestic premises, construction sites and industrial machines, and clothing and other items in laundries and dry-cleaning establishments. |
| Security officers and guards | Providing security and investigative services to organisations and individuals, excluding armoured car escorts and private investigators. |
*Source – https://www.vic.gov.au/sick-pay-guarantee
Will other states follow?
Victorian employees are largely covered by the federal industrial relations system including the Fair Work Act 2009 (Cth) (FW Act) including modern awards and enterprise agreements. The Victorian initiative supplements the entitlements provided by the national framework. They do not form part of the National Employment Standards (in the FW Act).
Other states may follow but may want to see how the pilot operates before embarking on similar schemes. There is also complexity where state entitlement initiatives operate in conjunction with federal entitlements.
So, what do I need to do?
- Check if your staff are affected by the new classifications and transition their arrangements.
- Update payroll system changes required for the pay rates and allowance changes.
- Communicate any change required to employees.
How Moores can help
Transitioning staff to the new classification system might not be smooth sailing. We can set you on the right path if you experience a few bumps in the road with identifying the correct classification or your employee disputes their new classification.
It is always better to be on the front foot if you identify a potential misalignment with the Award. Get in touch with the workplace relations team at Moores if you need support and advice.
Contact us
Please contact us for more detailed and tailored help.
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