End of JobKeeper 2.0: Are you ready?
The JobKeeper payment scheme was a lifeline for many businesses and individuals during 2020. Designed to help businesses that were negatively impacted by the COVID-19, the Scheme was introduced in March 2020 to help prevent business closures and job losses.
The original JobKeeper ended in September 2020 and was replaced with a somewhat ‘stripped back’ version known as JobKeeper 2.0. The official end of JobKeeper 2.0 will occur on 28 March 2021 and businesses and individuals who have relied on the payments are being encouraged to prepare for the end of the scheme.
Preparing Your Business
If your business has been receiving JobKeeper 2.0, it is important that you have plans in place for 28 March.
JobKeeper more than likely provided some much-needed cash flow during the pandemic and allowed you to retain staff despite a downturn in revenue and lockdown period. Whilst the blanket approach to subsidizing employees has meant that some businesses have ended up in a stronger position than they were in before the pandemic, for others who have been unable to adapt to changes in the market, it has helped to mask significant issues and simply keep them afloat.
What will happen to your business when the cash safety nets are removed? Do you have plans in place to cover costs and continue to grow revenue?
Unfortunately, small to medium businesses with less funding options available will be most affected by the end of JobKeeper 2.0. Some of the solutions that might help to ensure your business stay solvent will include reducing staff numbers or seeking new agreements and concessions from suppliers, landlords and lenders.
At CDQ, our experienced commercial lawyers can work with you to identify some of the actions that can be taken and negotiate terms on your behalf. If staff numbers need to be reduced, we can also provide advice on terminations and redundancies and ensure that you comply with any necessary employment law regulations.
Call CDQ on 02 8556 0130 and make an appointment with one of our lawyers now to ensure you understand the options available to your business and are ready for the end of JobKeeper 2.0.