The historic $130 billion JobKeeper payment is allowing many businesses to keep their staff employed, but now it has created more questions than answers.
Newcastle Federal MP Sharon Claydon said hundreds of people had contacted her office to ask a wide range of questions and express concerns about how employers were using the package.
The payment allows businesses impacted by the coronavirus to access a subsidy to continue paying their employees.
The Federal Government plans to provide a fortnightly payment of $1,500 per eligible employee until September this year.
It took action following the closure of businesses across a range of industries and the significant drop in activity at others.
Ms Claydon said that these wage subsidies were needed to prevent catastrophic levels of unemployment.
“We were very pleased when the government finally announced the JobKeeper program as it would keep workers connected to their employers so they can ramp up operations quickly when restrictions ease,” she said.
However, she added that some businesses were exploiting the program.
“While most businesses are trying to do the right thing by their employees, I’m hearing of too many cases of employers either not understanding or intentionally exploiting the JobKeeper program,” she said.
The most common issues with the package are employers unfairly changing hours of work, pay, or specific duties.
“Other big concerns are bosses who try to exclude individual employees or refuse to participate in the JobKeeper program entirely,” Ms Claydon said.
“It’s worth remembering that this is public money, generously contributed by Australian taxpayers in order to save jobs and local economies.
“All employers have a responsibility to ensure that the JobKeeper program delivers maximum public benefit.
“These can be complex issues, so I would urge employees who have concerns to join their union and seek help from the professionals who spend their daily lives understanding and protecting workers’ rights.”
On top of these concerns, many employers cannot afford to pay JobKeeper upfront and be reimbursed later. This means those businesses may not be able to participate in the scheme.
Paterson Federal MP Meryl Swanson said many businesses were trying to secure bank loans before the end of the month to pay wages.
She added that, if a business employs casuals and part-time workers who usually earn less than $1,500 per fortnight, it is even harder because eligibility for JobKeeper requires a business to pay all its employees at the minimum of $1,500 per fortnight.
For more information about the JobKeeper payment, visit the Australian Government’s website.
