More employees now eligible for the JobKeeper
Businesses on the JobKeeper take note, there has been recent changes which extend the eligibility of the program so that more of your employees may be eligible. Employee eligibility has been changed to 1 July 2020 and individuals are also able to re-nominate a different eligible employer as at that date. For any newly qualified employees to receive the JobKeeper, some crucial forms and declarations needs to be lodged by an impending due date, but given that the program will run until March next year, it will be well worth it for employees and businesses.
Due to lagging economic recovery and a second wave in Victoria, the Government has enacted rules to extend the eligibility of its JobKeeper program so that more employees may be eligible than before. Given that JobKeeper is now to run until March next year, it is important to get any newly qualified employees into the system as soon as possible.
The way JobKeeper was originally set up was to determine employee eligibility as at 1 March 2020. However, this date has now been changed to 1 July 2020. The result is that any employees who were employed after 1 March (but before 1 July) can now qualify for JobKeeper. That is, it is available for new employees engaged after 1 March.
It also means that employees who did not qualify as at 1 March may do so as at 1 July. For example, this may be relevant for long-term casual employees who had not clocked up the requisite 12 months as at 1 March but have done so by 1 July.
The new rules cover individuals who have changed employers. For example, those employees who had nominated with one employer as at 1 March 2020 can re-nominate with another employer as at 1 July 2020. An individual who re-nominates as an eligible employee of a new employer is excluded from being an eligible employee of the old employer (ie no double dipping).
A key condition is that the individual must have ceased their employment with the first employer before 1 July 2020 and commenced their employment with the new employer by 1 July 2020.
The reason for the cessation of employment is not relevant, eg the employee could have had his or her employment terminated, he or she could have resigned, or the employer may have ceased to exist.
The changes also cover employees who were employed as at 1 March but who had been let go by their employer due to the COVID-19 downturn, but were subsequently re-employed by the same employer.
In fact, the rules cover employees who have been or will be re-engaged by the same employer after 1 July 2020, ie they can nevertheless qualify for JobKeeper. In other words, there is no time limit on when this can happen. However, the eligibility of an individual re-employed by the same employer is not preserved if the individual re-nominated for another employer.
What needs to be done?
If you are a currently eligible employee, nothing. Your employer will continue to receive JobKeeper for wages you are paid on an ongoing basis ($1,500 per fortnight up to 27 September 2020).
If you are a newly qualified employee due to the change of date, you must return the “JobKeeper payment – employee nomination notice” that your employer gives you as soon as possible.
If you are an employer currently receiving JobKeeper, you must review the status of all employees to determine if any of them are newly qualified. If so, provide a nomination form to the employee by 22 August 2020 (note the tightness of this date). Include the newly qualified employees in the business monthly declaration (due by 14 September). Make sure that they are paid at least $1,500 for each of the 2 fortnights commencing 3 August and the money is received by the employee(s) by 31 August.
Need help?
These changes are important and require action now. If you have any questions on the technical aspects of the change or need confirmation whether certain employees would be eligible, we can provide quick assistance.