11 Aug Companies required to report liability to backpay casual workers in light of the Workpac v Rossato decision
ASIC has released advice on focus areas for financial reporting given the impact of COVID-19. As part of this advice, it has advised that:
“Companies should provide for additional employee entitlements (including annual leave, personal and carer’s leave, compassionate leave, public holiday pay, and redundancy payments) to past and present “casual employees” who were employed in circumstances covered by the Federal Court decision in WorkPac Pty Ltd v Rossato  FCAFC 84”.
The advice notes that “the decision did not allow an offset for any casual loading paid”.
For “casual employees” employed in circumstances that were not clearly covered by the decision, ASIC has said that a “provision or contingent liability may be required” for such casual employees.
It is interesting that ASIC has referred to this decision in its advice, noting that leave has been sought to appeal the decision to the High Court and employment reforms have been proposed in light of the significant impact of the decision.
If you are interested, you can access the advice from ASIC here: https://asic.gov.au/regulatory-resources/financial-reporting-and-audit/covid-19-implications-for-financial-reporting-and-audit-frequently-asked-questions-faqs/#q1