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New Regulations on Casual Loading 'Shield' to Stay
Earlier this month, crossbench senators assisted in the defeat of a Labor bid to disallow regulations supporting employers against claims arising from the full Federal Court's Skene decision on casual leave.
In August last year, the Federal Court judged in favour of truck driver Paul Skene, who was employed by labour hire firm WorkPac. The court found Mr Skene, who was employed on a casual basis for two-and-a-half years, was not a casual because of his regular pattern of work and therefore entitled to an annual leave payout.
Offset Regulations
The offset regulations were introduced by the government, to protect employers who have paid identifiable loadings to casual workers against entitlements (eg NES entitlements) owed if the employee is later found to be permanent
The government argued that the regulations offer "greater clarity" around employers' legal rights and shield them from ‘double dipping’ after the Federal Court Skene decision.
Strongly supported by employers worried about claims from current or former employees, the regulations support the existing law dealing with which payments can be taken into account.
Employers across many industries, including the electrical industry, were staring down the prospect of lengthy and costly class-actions seeking annual leave for long term casuals, who had already been paid at higher casual rates, which could cripple employers.
While this new Regulation gives employers confidence that there are protections against ‘double dipping’ claims for annual leave, it is critical that employers utilising long term casuals working regular and systematic hours, could still be deemed full-time employees under the Fair Work Act and should ensure their casual rate of pay expressed appropriately.
That is, the employer needs to state on a payslip, contract of employment or letter of offer that it pays the person an amount, the casual loading, and it is clearly identifiable.
If you have questions or would like to request a common law contract template, please contact the Workplace Relations Team here or call on 1300 889 198.
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