Expansion of the Sick Pay Guarantee Scheme

The Victorian Government’s Sick Pay Guarantee Scheme (the Scheme) commenced operation in Victoria on 14 March 2022.  Less than a year after its commencement, attention turned to whether the Scheme’s operation would be expanded as the first year was under budget and uptake by eligible employees was below anticipated levels (see previous article here).

Ben Carroll, Victorian Minister for Employment, announced the expansion of the Scheme on 26 August 2023, with 400 new jobs now eligible to claim benefits under the Scheme.  The Scheme has been extended to March 2025.

The Scheme is a fully funded Government initiative which provides designated Victorian casual and contract workers up to 38 hours guaranteed sick and carer’s pay per year subject to meeting various eligibility criteria. Once accepted into the Scheme, workers can begin claiming sick and carer’s pay immediately.

The expanded list of eligible workers now includes:

  • community support work;

  • taxi and rideshare;

  • arts;

  • childcare and early childhood;

  • fitness instructors;

  • tourism and outdoor recreation;

  • factory workers

  • fruit pickers; and

  • hairdressers.

The Scheme was allocated $245.7 million in funding for the two-year pilot. According to Government data, more than 1.8 million hours of sick and carer’s pay has been covered so far and more than 76,000 casual and contract workers are registered.  However, these figures are substantially below the Government’s anticipated participation rate.

The future of the Scheme remains unclear, including if and how the Scheme will be funded post-March 2025.  The Scheme (and its expansion) has drawn some criticism from business groups with concerns that the State Government is stepping into a Federal space and compensating casual employees twice, given casual employees already receive a casual loading.  Additionally, businesses are seeking confirmation from the Government that extension of the Scheme beyond March 2025 will not be funded by an additional levy on businesses.

There is no indication as to whether the expansion of the Scheme has increased participation rates.  Details about the future of the Scheme will likely be released by the Government in the lead up to March 2025.

Jasmine O’Brien
Principal
T +61 3 9611 0149
jobrien@sladen.com.au

Jordan Bauer
Senior Associate
T +61 3 9611 0130
jbauer@sladen.com.au

Jordan Bauer