You can find an overview of the amendments to the Clerks Award in this recent article by Chris Hartigan and Hannah Linossier: Urgent update on COVID-19 Industrial Issues – Commission allows changes to the Clerks Award in response to COVID-19 industry worries.
(a) Changes to the Hospitality Award
The Commission determined to insert a Schedule L into the Hospitality Award. The schedule operates from 24 March 2020 until 30 June 2020, but may be extended on application to the Commission. In summary, the schedule provides:
In either case, employees given such a direction will continue to accrue annual leave and personal leave, and any other applicable accruals under the Hospitality Award, based on their hours of work before the schedule commenced. Similarly, if an employee who has been directed to work reduced hours takes a period of paid annual leave or personal leave, the payment for that leave will be based on the employee’s ordinary hours of work before the schedule commenced.
(b) Implications of the changes to the Hospitality Award and Clerks Award for businesses
Although these award changes appear to be a welcome reprieve for many employers, businesses should still give consideration to whether individual employment contracts constrain the business from acting in the manner contemplated by the applicable award. For example, even if a reduction of hours is contemplated by the newly-inserted schedule to the modern award, employers will be bound to comply with any more restrictive terms contained in an employee’s employment contract. Employers should seek appropriate legal advice if they consider this may be the case.
(c) Amendments to the Long Service Leave Act 1955 (NSW)
The Long Service Leave Act was amended pursuant to the Treasury Legislation Amendment (COVID-19) Bill 2020 (NSW). The amendments permit an employer to give a worker a period of long service leave that is less than one month, in advance of the worker accruing an entitlement to all or part of the leave, by agreement. The amendments also allow an employer to give a worker less than one month’s notice to take long service leave, if the employee agrees to the lesser period of notice.
The amendments commence on and end on the day that is 6 months after the commencement, or a later day, which is not more than 12 months after the commencement, as prescribed by the Regulations to the Act.
In conclusion
The variations to the Hospitality Award and the Clerks Award, although on their face a welcome reprieve for employers, should be treated with caution, as employers remain bound by the terms of each employee’s employment contract.
In relation to the amendments to the Long Service Leave Act, employers in New South Wales can take comfort in the fact that agreement can be reached between an employer and employee to give shorter notice of long service leave, or to take shorter periods of long service leave wholly or partly in advance, in accordance with the needs of the business.
Key takeaways