Liability to backpay casual workers caught by the Rossato v Workpac decision should be included in financial reporting

Liability to backpay casual workers caught by the Rossato v Workpac decision should be included in financial reporting

07 August 2020 Authored by: Jack Bristed, Annie Smeaton   |   Topics: Workplace relations and safety

ASIC has released advice stating that companies must include liabilities to backpay leave entitlements to past and present casual employees caught by the decision in Rossato v Workpac in their financial reporting.

It has said that these liabilities may include:

  • annual leave
  • personal and carer’s leave
  • compassionate leave
  • public holiday pay
  • redundancy payments.

The advice notes that the decision did not allow an offset for a casual loading paid. For those whose status might be a grey area, the corporate watchdog also warns that a ‘provision or contingent liability may be required for ”casual employees” employed in circumstances that were not clearly covered by the decision’.

While it is important for businesses to fully disclose any liabilities to stakeholders, the advice comes at an interesting time. Leave has been sought to appeal the Rossato decision to the High Court and the Federal Government IR working groups are considering casual employment reforms in light of this latest decision.

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