{"id":2545,"date":"2021-03-22T10:00:11","date_gmt":"2021-03-21T23:00:11","guid":{"rendered":"https:\/\/saige.com.au\/?p=2545"},"modified":"2021-03-22T14:17:28","modified_gmt":"2021-03-22T03:17:28","slug":"avoiding-a-jobkeeper-hangover","status":"publish","type":"post","link":"https:\/\/saige.com.au\/business\/business-advice\/avoiding-a-jobkeeper-hangover\/","title":{"rendered":"Avoiding a JobKeeper Hangover"},"content":{"rendered":"\t\t
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JobKeeper has been a lifeline for employees and employers alike. A 12 month lifeline that is now coming to an end. The coronavirus made us all adapt to a new normal, but now that the safety nets are being withdrawn, is your business ready to stand on its own two feet?<\/strong><\/p>

The JobKeeper employee supplement ends on Sunday, March 28<\/strong> with little to no chance of being extended. While it was been far from a party these past 12 months, has your business fully assessed the impact of a post JobKeeper hangover?<\/p>

The End of JobKeeper Enabling Directions\u00a0<\/h2>

Not only did JobKeeper provide a significant cash supplement to employers to pass on to employees, it also meant employers could alter the working arrangements with employees in what was known as the JobKeeper Enabling Directions<\/a>. With the end of JobKeeper, so too is the end of these enabling directions, which may be more of an adjustments than some realise.<\/p>

The JobKeeper Enabling Directions were an amendment to the Fair Work Act which gave extraordinary flexibility in working arrangements in an attempt to limit mass redundancies due to the pandemic. These directions enabled employers to among other things, change employee\u2019s hours, their duties performed and even location of work subject to certain conditions being met.<\/p>

With the end of JobKeeper these enabling directions also end. This may prove equally difficult to employers to adjust to, along with needing to return employees to their previous pre-JobKeeper salaries, now with no cash support.<\/p>

The ‘new’ new normal<\/h2>

Along with staff, many businesses made adjustments to their business model during the pandemic. Whether it being going online, adding take away or delivery options, selling alternate products and running remote working. There were also rent holidays by landlords and debt deferrals by banks to soften the blow to cash flow.<\/p>

Business owners need to now decide if the new operating model remains or if a hybrid model persists. And, with interest rates still at record lows, is investment an option to help return to the market with a vengeance?<\/p>

For some, even a reduced JobKeeper has remained a vital lifeline for businesses hit hard by the pandemic.\u00a0 The ultimate end of JobKeeper may be the tipping point to force some tough decisions such as redundancies or even insolvency.<\/p>

Getting the right advice<\/h2>

The right business advice can help you plan for both the worst case and best case scenarios. Management Accounting<\/strong><\/a> services for example can help provide business owners advice such as:<\/p>