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On 7 August 2020 the government proposed further changes to the JobKeeper extension. For more information, visit the Treasury website.

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Re: Annual leave and jobkeeper

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I'm new

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Hi, 

 

In April 2020 an employee took 25 hours of annual leave. The business is now eligible and has registered for jobkeeper.

We have paid each employee the $1500 per fortnight for April. Does this employee now get 25 more hours of pay on top of the 25 as jobkeeper is base house and the leave is their entitlements?

 

Thankyou.

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Dynamo

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The Treasury has a fact sheet which says the following about annual leave:

 

I AM STILL WORKING OR ON PAID LEAVE AND EARN MORE THAN $1,500 PER FORTNIGHT BEFORE TAX. WILL MY PAY CHANGE?

No. If you receive $1,500 or more in income per fortnight before tax, you will continue to receive your regular income according to your prevailing workplace arrangements. The JobKeeper Payment will assist your employer to continue operating by subsidising part of your income.

 

I AM STILL WORKING OR ON PAID LEAVE AND I EARN LESS THAN $1,500 PER FORTNIGHT BEFORE TAX. HOW MUCH WILL I RECEIVE?

For eligible employees, if you receive less than $1,500 in income per fortnight before tax, your employer must pay you, at a minimum, $1,500 per fortnight, before tax. Your employer will continue to pay you your ordinary income according to your prevailing workplace arrangements and provide a ‘top-up’ so you receive $1,500 per fortnight, before tax.

 

I hope this helps.

2 REPLIES 2
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Dynamo

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Hi

 

Per the amendments to the Fair Work Act the receipt of JobKeeper funds does not impact employee entitlements like leave. If the employee works ordinary shifts their leave continues to accrue as per normal. An example would be a part time employee who works 2 days per week, their leave would accrue at the normal rate, the fact that they may have been paid more than ususal for the fortnight because of the $1,500 does not impact this.

 

There is some more information here: https://coronavirus.fairwork.gov.au/coronavirus-and-australian-workplace-laws/flexibility-in-workpla...

 

Hope that helps

D

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Best answer

Dynamo

Replies 0

The Treasury has a fact sheet which says the following about annual leave:

 

I AM STILL WORKING OR ON PAID LEAVE AND EARN MORE THAN $1,500 PER FORTNIGHT BEFORE TAX. WILL MY PAY CHANGE?

No. If you receive $1,500 or more in income per fortnight before tax, you will continue to receive your regular income according to your prevailing workplace arrangements. The JobKeeper Payment will assist your employer to continue operating by subsidising part of your income.

 

I AM STILL WORKING OR ON PAID LEAVE AND I EARN LESS THAN $1,500 PER FORTNIGHT BEFORE TAX. HOW MUCH WILL I RECEIVE?

For eligible employees, if you receive less than $1,500 in income per fortnight before tax, your employer must pay you, at a minimum, $1,500 per fortnight, before tax. Your employer will continue to pay you your ordinary income according to your prevailing workplace arrangements and provide a ‘top-up’ so you receive $1,500 per fortnight, before tax.

 

I hope this helps.