Labour hire firm WorkPac has launched a High Court challenge seeking to overturn the Full Federal Court ruling of WorkPac Pty Ltd v Rossato (The WorkPac Decision) made last month.
As reported in our May edition of Vision, the landmark ruling on casual employment sent shockwaves amongst employers after opening the way for casual employees who work regular and predictable shifts to be paid leave and other entitlements despite receiving a 25% casual loading rate in lieu of such entitlements. It has been estimated that the WorkPac Decision could expose employers to over $14 billion in back-pay.
What should employers do?
WorkPac’s appeal to the High Court, as well as IR Minister Christian Porter’s recent confirmation that the Government would also intervene in the WorkPac Decision, has in some sense pressed “paused” in terms of any immediate action employers may need to take due to the WorkPac Decision.
We suggest waiting for further developments before seeking advice on how the WorkPac Decision may impact your business. We will keep you informed of all developments in this important matter.