The Victorian Government recently introduced the “Sick Pay Guarantee”, a two-year scheme that would allow casual team members to take up to 38 hours of paid sick or carer’s leave per year.
Although employers are not responsible for applying for the Victorian Sick Pay Guarantee on behalf of their employees, the Victorian Sick Pay Guarantee is available to all eligible casual employees in Victoria and may apply to your workplace.
What is a Casual Employee?
A casual employee is someone who accepts a job offer from an employer with the understanding that there is no firm commitment in advance to continued work. A casual employee is usually required to work according to a roster. However, this roster can vary on a weekly basis, and shifts are not guaranteed.
Casual employees are paid “casual loading”, typically 25% of the base hourly rate, to compensate for the irregular nature of casual work, in addition to not being eligible to accrue or receive annual leave or personal leave. While they are not entitled to personal leave, annual leave, or notice of termination under the Fair Work Act, casual employees do have the following rights:
- To receive the Fair Work Information Statement and the Casual Employment Information Statement at the start of employment
- “Casual loading” (in addition to the minimum rate of pay as specified by the award)
- 2 days of unpaid carer’s leave and 2 days of unpaid compassionate leave per occasion
- unpaid community service leave
- 5 days of unpaid family and domestic violence leave (in a 12-month period)
- a day off on public holidays, unless reasonably requested to work.
What is the “Sick Pay Guarantee”?
For the next two years, the Victorian government will completely fund the $245.6 million Sick Pay Guarantee plan.
The Victorian Sick Pay Guarantee ensures that casual and contract workers will receive sick pay if they need to take time off due to illness or to care for loved ones.
More than 150,000 workers in qualified jobs in Victoria can now sign up for the Sick Pay Guarantee pilot and get up to five days of sick and caregiver pay at the national minimum wage each year.
What occupations are eligible for the Victorian Sick Pay Guarantee?
Current eligible occupations include:
- Hospitality workers
- Food trade workers and food preparation assistants
- Supermarket workers
- retail and sales assistants
- aged and disability care workers
- Cleaners and laundry workers
- security guards
What are my responsibilities as an employer?
Employers are encouraged to support employees by giving them time off when they are ill or need to care for family members.
While businesses are not required to participate in Sick Pay Guarantee applications, their employees may request proof of employment if they do not already have it. Employees are also not obliged to notify their employers that they are making a claim. As part of a random audit, the Department of Jobs, Precincts, and Regions may also call employers to verify a worker’s application or claim.
While the Sick Pay Guarantee will be paid for by taxpayers during the two-year trial period, the Victorian Government has suggested that any ongoing programme may be paid for by a fee paid by businesses in the state.
Do My Employees Accrue Paid Casual Leave?
Your casual employees do not accrue personal or annual leave.
Casual employees are entitled to 38 hours of sick or caregiver leave every year under the Victorian Sick Pay Guarantee plan. However, the hours do not accrue and roll over to the next year. This is a state-based initiative and is not applicable to workers in other states or territories.
Which employees are eligible?
To claim this leave, all the following criteria must be met by an employee:
- 15 years of age or older. If under 15, parent or guardian consent is needed.
- A casual team member or self-employed with no other employees.
- no entitlement to paid personal, sick or carer’s leave.
- must work physically in Victoria.
- You must be eligible to work in Australia.
- work an average of 7.6 hours per week.
- have no other source of income.
- Inability to work.
- must be employed in an eligible occupation.
How does an employee make a claim?
Before filing a claim, an employee must first fill out an application to determine their eligibility for the Victorian Sick Pay Guarantee. Once approved, the employee can submit a claim for paid sick or carer’s leave within 60 days of their absence, for a minimum of 3 hours on any day. The maximum number of hours that can be claimed in a 12-month period is 38, and they are paid at the National Minimum Wage (NMW), which is currently $20.33 per hour or $772.54 per week.
An employee can make a claim here.
How will the new scheme affect my business?
The Victorian Sick Pay Guarantee is a positive initiative for your casual employees that is also predicted to result in fewer workplace accidents and illnesses, increased productivity from healthier workers, and lower staff turnover rates.
During the two-year trial period, the Sick Pay Guarantee will be paid for by taxpayers. The Victorian Government has suggested that businesses could be charged a levy to pay for it after that.
We can help your company
At hussetHR, we empower managers and employers to make informed decisions and support them in achieving their organisation’s goals. We apply Fair Work compliance standards, which eliminates the need for you to guess about legislation and policy.
We service a variety of companies that employ casual workers, to whom the new Victorian Sick Pay Guarantee applies.
We are here to address any questions you may have about new legislation, such as the Victorian Sick Pay Guarantee.
When determining the optimal solution for your company, it is advisable to get experienced HR advice. hussetHR is always available via phone or email and ready to advise you on the best course of action.
Call us today at 1300 487 738