Casual Loading Offset Regulation Threatened by Disallowance Motion
Senator Cameron has tabled a motion to disallow the Fair Work Amendment (Casual Loading Offset) Regulation 2018 to void its effect.
Following the outcome of the Workpac v Skene decision, the Casual Loading Offset Regulation permits payments of a clearly identifiable casual loading to be offset against a claim for permanent employment entitlements under the NES.
If the motion to disallow is successful, the Casual Loading Offset Regulation will not apply. However, the disallowance will not impact the validity of any application of the Regulation while it was in force.Therefore, any offset that occurs while the Regulation continues to be in effect will remain valid if it is disallowed.
The outcome of the motion to disallow the regulation remains unresolved as the vote on motion has been postponed to 2 April 2019, which will coincide with the Federal Budget. The Senate must vote on the disallowance motion by 17 June 2019, otherwise the Regulation will automatically be deemed to be disallowed and will cease to have effect.
If the disallowance motion is not resolved by the Federal Election, it will be considered to be tabled anew on the first sitting day that Parliament resumes, and the process may start afresh.
Disallowance of this regulation will renew the uncertainty surrounding casual employment and the potential for double-dipping on permanent employment entitlements that are satisfied by payment of the casual loading.
Contact IRIQ Law for more details on 07 3077 6767.