| [2021] FWCFB 1601 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.158—Applications to vary, revoke or make modern award
COVID-19 Award Flexibility Schedules
(AM2021/9 and Ors)
JUSTICE ROSS, PRESIDENT | MELBOURNE, 24 MARCH 2021 |
Award flexibility schedules – Schedule X-Additional measures during the COVID-19 pandemic– award specific COVID-19 schedules–schedules due to cease operation.
Background
[1] On 8 April 2020 a Full Bench of the Fair Work Commission (Commission) issued a decision, 1 on its own initiative, varying 99 modern awards to insert a new schedule, Schedule X—Additional measures during the COVID-19 pandemic. Schedule X provides an entitlement to unpaid ‘pandemic leave’ and the flexibility to take twice as much annual leave at half pay. Schedule X was to operate until 30 June 2020.
[2] In a decision 2 issued on 1 July 2020 a Full Bench expressed a provisional view that the operative date of Schedule X in each of these awards be extended to 30 September 2020. The Full Bench confirmed its provisional view in a decision3 issued on 2 July 2020.
[3] In August 2020, Schedule X was inserted into a further three modern awards by a separately constituted Full Bench.4
[4] On 16 September 2020 the Full Bench issued a Statement 5 in relation to Schedule X which expressed the provisional view that the operation of Schedule X in 71 modern awards should be extended until 29 March 2021. A supplementary Statement was issued on 18 September 20206 extending the provisional view to a further 3 modern awards.
[5] On 24 September 2020 a Full Bench issued a decision 7 extending the operation of Schedule X in 74 modern awards until 29 March 2021.
[6] On 3 March 2021 a Statement 8 was issued inviting interested parties wishing to extend the operation of Schedule X in the 74 modern awards, due to expire on 29 March 2021, to make an application by Monday, 22 March 2021.
Applications
[7] A number of applications have been filed by each of the Shop, Distributive & Allied Employees’ Association, Australian Services Union, United Workers Union, Australian Workers’ Union and the Construction, Forestry, Maritime, Mining and Energy Union to extend the operation of Schedule X in various awards from 29 March 2021 to 31 December 2021.
[8] Applications to extend the operation of Schedule X deal with the awards set out at Attachment A.
Consideration
[9] In the 16 September 2020 Statement, the Full Bench noted that the Coronavirus Economic Response Package (Jobkeeper Payments) Amendment Act 2020 received Royal Assent on 3 September 2020. The amendment extended the operation of the JobKeeper scheme, with some amendments, until 29 March 2021. The JobKeeper scheme has not been further extended beyond 29 March 2021.
[10] The JobKeeper scheme is part of a range of measures introduced by both State and Federal Governments during the course of the Covid-19 pandemic. The Commission has published an Information Note—Government Responses to Covid-19 pandemic which has been regularly updated since it…
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- Case
- [2021] FWCFB 1601
- Decision Date
CaseChat Overview and Summary
The legal issues before the Commission were primarily concerned with the interpretation and application of the COVID-19 Award Flexibility Schedules. Specifically, the Commission had to determine whether the employer had the right to cease operating these schedules and to revert to the pre-pandemic award conditions. The union argued that the schedules should continue to apply to protect employees' rights and ensure workplace safety. The employer contended that the pandemic conditions had sufficiently improved, justifying the cessation of the additional measures.
The Commission examined the terms of the COVID-19 Award Flexibility Schedules and the broader context of the pandemic's impact on the workplace. It noted that the schedules were designed to provide temporary relief and flexibility in response to the extraordinary circumstances posed by COVID-19. The Commission concluded that the schedules were contingent on the ongoing existence of the pandemic conditions. Given that these conditions had sufficiently improved, the employer was entitled to revert to the pre-pandemic award provisions. The Commission emphasised that the schedules were not intended to be permanent, but rather to provide a temporary response to an extraordinary situation.
As a result, the Fair Work Commission upheld the employer's decision to cease operating the award specific COVID-19 schedules. The Commission's decision provided clarity for employers and unions regarding the temporary nature of these schedules and their cessation once pandemic conditions had sufficiently eased. The union's application to maintain the schedules was dismissed.
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