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COVID-19 amendment to the vehicle manufacturing, repair, services and retail award 2010

14 May 2020
oscar sach-haber
Read Time 3 mins reading time

The Vehicle Manufacturing, Repair, Services and Retail Award 2010 (Vehicle Award) is the latest object of COVID-19 related changes, following previous amendments made to the Clerks—Private Sector Award 2010, Legal Services Award 2020 and Hospitality Industry (General) Award 2010 among others.

The changes to the Vehicle Award are aimed at ‘preserving the ongoing viability of businesses within the motor vehicle industry and preserving jobs during the COVID-19 pandemic’. They will operate from 11 May through to 30 June 2020, but this period may be extended.

Importantly, the changes to the Vehicle Award will not apply to the following employees:

  • ‘eligible employees’ engaged by an ‘eligible employer’ under the JobKeeper rules; and
  • vehicle manufacturing employees, drafting, planning and technical employees as well as supervisory employees.

key changes:

  1. Operational flexibility
    • Employee duties may now be varied by an employer so long as the duties remain safe, fall within that employee’s level of skill/competency, are reasonably within the scope of the employer’s operations and where the employee is licenced/qualified to perform them.
  2. Temporary reduction of hours of work for full time and part time employees
    • An employer may direct a full-time employee to work an average of between 22.8 and 38 ordinary hours per week, where the reason for the reduction relates to the effects of COVID-19.
    • Subject to certain exceptions, part-time employees may be directed to work between 75% and 100% of their agreed hours per week over the roster cycle.
    • Employers must ensure they consult with their employee(s) about any proposed changes.
    • A reduction in employee hours of work will impact employee pay on a pro-rata basis.
  3. Annual leave
    • Employers may request that an employee take paid annual leave (subject to the employer having considered the employee’s personal circumstances).
    • An employer and employee may agree to the employee taking up to twice as much annual leave at a proportionately reduced rate (including for any close-down period).
  4. Close downs
    • Where a close-down has occurred for reasons attributable to the COVID-19 pandemic, an employer may direct an employee to take paid leave, or in certain circumstances, unpaid leave.
  5. Secondary training
    • Employers are not to unreasonably refuse a request for secondary training or professional development from an employee who has been asked to take leave.

key takeaways

Employers covered by the Vehicle Award should be aware of these new options which may be available to them, and more generally, companies should be aware of how their businesses may be impacted by such changes to industry awards in response to COVID-19.

Contact our Employment, Safety and Migration team here for more information.

stay up to date with our news & insights

COVID-19 amendment to the vehicle manufacturing, repair, services and retail award 2010

14 May 2020
oscar sach-haber

The Vehicle Manufacturing, Repair, Services and Retail Award 2010 (Vehicle Award) is the latest object of COVID-19 related changes, following previous amendments made to the Clerks—Private Sector Award 2010, Legal Services Award 2020 and Hospitality Industry (General) Award 2010 among others.

The changes to the Vehicle Award are aimed at ‘preserving the ongoing viability of businesses within the motor vehicle industry and preserving jobs during the COVID-19 pandemic’. They will operate from 11 May through to 30 June 2020, but this period may be extended.

Importantly, the changes to the Vehicle Award will not apply to the following employees:

  • ‘eligible employees’ engaged by an ‘eligible employer’ under the JobKeeper rules; and
  • vehicle manufacturing employees, drafting, planning and technical employees as well as supervisory employees.

key changes:

  1. Operational flexibility
    • Employee duties may now be varied by an employer so long as the duties remain safe, fall within that employee’s level of skill/competency, are reasonably within the scope of the employer’s operations and where the employee is licenced/qualified to perform them.
  2. Temporary reduction of hours of work for full time and part time employees
    • An employer may direct a full-time employee to work an average of between 22.8 and 38 ordinary hours per week, where the reason for the reduction relates to the effects of COVID-19.
    • Subject to certain exceptions, part-time employees may be directed to work between 75% and 100% of their agreed hours per week over the roster cycle.
    • Employers must ensure they consult with their employee(s) about any proposed changes.
    • A reduction in employee hours of work will impact employee pay on a pro-rata basis.
  3. Annual leave
    • Employers may request that an employee take paid annual leave (subject to the employer having considered the employee’s personal circumstances).
    • An employer and employee may agree to the employee taking up to twice as much annual leave at a proportionately reduced rate (including for any close-down period).
  4. Close downs
    • Where a close-down has occurred for reasons attributable to the COVID-19 pandemic, an employer may direct an employee to take paid leave, or in certain circumstances, unpaid leave.
  5. Secondary training
    • Employers are not to unreasonably refuse a request for secondary training or professional development from an employee who has been asked to take leave.

key takeaways

Employers covered by the Vehicle Award should be aware of these new options which may be available to them, and more generally, companies should be aware of how their businesses may be impacted by such changes to industry awards in response to COVID-19.

Contact our Employment, Safety and Migration team here for more information.