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ABC News
ABC News
Business
business reporter Emilia Terzon

Most casual workers will have to choose between no pay or going to work with COVID-19

There are concerns that casual workers who are not entitled to sick pay will feel pressured to hide symptoms of COVID-19 and continue going to work, now that subsidies for most of them are ending.

Mandatory isolation requirements for people diagnosed with the virus will end nationally on Friday, October 14, except in Victoria where they ended overnight on Wednesday.

Federal government payments for most casual and contract workers who come down with COVID-19 are also ending.

Casual workers, by definition, don't get sick pay.

The federal government has confirmed that now the only casuals in future who will get payments of between $750 to $450 to not go to work for a week while sick with COVID-19 are those in key healthcare settings.

Retail worker Ioannis Tsiavos is one of the millions of casual workers nationally now grappling with the dilemma in front of them.

He balances casual shifts with university. Unlike office workers, as a shop attendant he can't do his job from home if he gets sick. 

"It does put casual workers in a really tough spot," he said.

"It's between doing what we know is morally right and what is good for the community and not spreading infectious disease or actually being able to live and to pay rent."

He has had the virus and is worried about getting it again, and not having enough savings to stay at home and recover.

"COVID symptoms can be extremely harsh," he said.

Which casual workers can still get pandemic benefits?

There are 2.2 million casual workers in Australia, plus another 1 million contract workers who largely don't get sick leave entitlements either.

The only casual workers who will be eligible for federal government subsidies in future are those in high-risk healthcare settings where spreading the virus could impact particularly vulnerable people.

Their eligibilities include:

  • A casually employed person working in disability, aged care, Indigenous healthcare or a hospital setting
  • The person claiming must have tested positive for COVID-19. Close contacts and carers are not eligible
  • A person can claim between $750 to $450 for one week off work, depending on how many hours they generally claim
  • The number of times a person can claim will be capped at three payments in a six-month period. 

In Victoria, there is another safety net for many other casual workers.

That state has had a pilot program in place since March that offers casual and contract workers five days' sick pay at the national minimum wage.

Eligible workers include people in hospitality, food workers, retail staff, security guards, cleaners and supply chain workers.

Retail worker Ioannis Tsiavos is based in Victoria.

"Five days' casual sick pay actually gives me some reassurance that I'm not going to be completely sidelined," he said.

ABC News contacted all the other states and territories. None confirmed that they had similar pilot programs to Victoria.

What are employers advising their workers to do?

The federal government says the end of mandatory isolation is appropriate, because there are low rates of COVID-19 transmission and high vaccination rates.

When asked about the issue of casual workers last month, the prime minister said the decision to scrap most subsidy payments was about ending "COVID exceptionalism".

"The flu has existed, and health issues have existed, for a long period of time and the government hasn't always stepped in to pay people's wages while people have health concerns," Anthony Albanese said.

"It is not sustainable to have in place a system whereby the government steps in permanently.

"We understand the pressures that are there. It is one of the reasons why my government has focused on reducing the incidence of casual work."

A recent inquiry found the most common jobs where people are employed casually are sales assistants, food prep attendants, and carers aids.

As the emergency response to the pandemic ends, major companies have been scrambling to update their workplace policies.

Many employ a combination of permanent office workers with entitlements, and frontline workers in shops and pubs.

Coles, Endeavour Group, Kmart, Target, David Jones, Woolworths and Australian Venue Corporation have told ABC News that they will still expect or strongly encourage sick workers to refrain from working.

"At Coles, we want to keep our team members and customers safe," a spokesperson for the supermarket chain said. 

"All team members are advised to carefully monitor for symptoms and never attend work if they have any COVID or flu-like symptoms."

Communication provider and retail chain operator Telstra said it has a back-up plan of paid pandemic leave for all workers, including its casuals.

Meanwhile, the major hospitality chain Australian Venue Corporation has thousands of workers in pubs and restaurants.

"During initial waves, including Omicron, we paid sick leave for all staff, including casuals," AV Co's chief executive Paul Waterson told ABC News.

"Given the latest settings, we have decided to not continue this. The total cost of this over the previous waves was around $2 million dollars.

"Our preference is to employ team members on a permanent-part time or full-time basis rather than casual.

"If the team member is symptomatic, then don't work for five days on a positive test or until they feel well enough to return to work.

"If the team member is asymptomatic, we ask them to work with a mask on or, alternatively, take sick leave."

Don't casuals get extra cash anyway?

Many employers and representative bodies such as the Australian Retailers Association (ARA) argue that casual workers get a 25 per cent loading to deal with this situation.

"It's important to note that casuals receive a loading to cover sick leave and holiday pay," the ARA's chief executive Paul Zahra, said.

He also told ABC News that in a period of such low unemployment, casual workers should push for work with entitlements if they wanted.

Sean — who didn't want his last name used — is a casually employed house painter who would prefer to be permanently employed by his hire company.

"If COVID-19 goes through my house, I have rent to pay. Even if I keep my son home from childcare, those childcare payments don't stop," he said.

"I can't tell my landlord that I've had COVID this week, so I can't pay a week's rent."

Sean has also had COVID-19 before and doesn't want it again. 

"I'd love to stay home while I'm sick. If I go to work, I'm also not resting. I'm not eating well. I end up sick for twice the amount of time," he said.

As well as feeling like he has no financial choice but to work while sick, Sean is worried he will catch the virus in the workplace.

"I am frustrated and a little bit concerned," he said.

Leah Gregory is a casually-employed cafe worker in Darwin who is also contemplating the removal of subsidies if she comes down with COVID-19.

"For casual people, I understand you're on a casual rate," she told ABC News.

Leah says she wouldn't work if sick with COVID-19, and it would be "a lack of respect" for others to do that in the workplace.

"Personally, for me, that is not the right thing to do."

Employment lawyer says situation is fraught

Maurice Blackburn employment lawyer Giri Sivaraman is unsurprised about the ad hoc situation emerging with employers' rules around COVID-19.

"Companies have, for a while, made their own decision [about] the safety risks that vary from workplace to workplace," he said.

Mr Sivaraman said the situation was fraught for employers, too, because there are untested liabilities if staff catch COVID-19 in a workplace.

"They might make a workers' compensation claim or potentially even a claim [of] negligence against the employer," he said.

"Employers are making decisions based on the legal argument, rather than the actual risk of the employee coming to work.

"If you genuinely want to minimise the risk of COVID, you've got to give appropriate compensation for staying at home.

"People in precarious work are more likely to take riskier options and come to work. [It's not that they] don't care about the implications for others. They can't not work because they need to get paid."

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