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Re: JobKeeper payment - top-up a temporary salary reduction back up to its ordinary amount?

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I am hoping you can help me understand something related to the JobKeeper payment?
 

My employer implemented a salary reduction program on account of Covid-19 having a cash-flow impact - all staff were requested to voluntarily* take a 20% salary reduction (*with the company noting:" If we are unable to achieve the outcomes (salary reductions) we are seeking, or circumstances deteriorate further, we may need to consider additional measures.")

 

To my knowledge, everyong (including myself) agreed to an reduction, with the specific clause being: "effective from 01 April 2020 and will operate for an initial period of 3 months unless you are notified of an intention to extend the period"

 

At the moment, it appears that my employer will be eligible to receive the JobKeeper subsidy payments and has indicated their intent to keep the 'austerity measures' in place regardless (i.e. maintain the reduced salary amounts even with the JobKeeper payments introduced).

 

My question is:

Most salaried employees employed by the company earn more than $1500 per week - even after the 20% reduction. Given we have all taken this 20% reduction in salary, with no reduction in working hours, is my employer required to use the subsidy to 'top-up' the temporary reduction in base salary? (i.e. return the salary payments back to their ordinary amounts, insofar as the $1500 would facilitate this)

 

I know my employer will be required to 'pass on the full JobKeeper subsidy' to me, but does this mean they can lower the amount which they contribute to my already reduced salary, and then 'top-up' the reduced salary buy using the JobKeeper payment amount?

 

Should this be the case, the way I see it, this would constitute as a second reduction in my base salary.

 

I would be very grateful for some guidance and clarity on this,

Many thanks

 

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Most helpful response

Devotee

Replies 0

Yes your employer is required to pass a long the full JobKeepr amount to you which is $1500 a fortnight before tax. There is no requirement for your employer to top up your wages, however they must ask you to only work in line with your employment conditions. To find out how many hours they can ask you to work and about any changes to income, you need to direct these questions to Fair Work.
Their website has a lot of information that could help you.
1 REPLY 1

Most helpful response

Devotee

Replies 0

Yes your employer is required to pass a long the full JobKeepr amount to you which is $1500 a fortnight before tax. There is no requirement for your employer to top up your wages, however they must ask you to only work in line with your employment conditions. To find out how many hours they can ask you to work and about any changes to income, you need to direct these questions to Fair Work.
Their website has a lot of information that could help you.