Google is planning to cut people’s pay for working from home. Could it happen here? – ABC News

Google could cut pay for remote workers, with those with long commutes potentially hit hardest, but legal experts in Australia say bosses here would have difficulty doing the same.

Facebook and Twitter already have location-basedpackages, which reduce the salaries of workers who move to cheaper areas.

According to Reuters, Google's policy goes further, with a pay calculator that allowsemployees to see the effect movingwould have on their pay packet.

For example, a Google worker who lives an hour from New York City would be paid 15 per cent less if she worked at home, while a colleague from the same office living in New York City would see no cut from working from home, according to Reuters.

The pandemic has prompted manyAustralians with city jobs to move to the regions and work remotely.

But lawyers say bosses here who cut pay for those who work remotely all the timeface legal challenges.

"Employers in Australia are not entitled to unilaterally cut the pay of existing employees based on geographic location,"Brad Annson, an employment lawyer and partner at Gordon Legal, says.

"An employer who does sowill be exposed to a range of potential legal action."

Basically, a boss who cuts your pay without agreementwould be in breach of yourcontract or enterprise agreement.

"So much so that the employee is entitled to treat that as a termination, and therefore bring a claim for unfair dismissal," Mr Annson explains.

And, if you're covered by an award or enterprise agreement, you can't even agree to a pay cut.

"Essentially you cannot contract out of an enterprise agreement or award."

However, it's not necessarily against the law to offer location-based salary packages to new employees on private contracts.

AP: Jeff Chiu

That's more ofa grey area.

JobWatch executive director Zana Bythewaywarns that justas an employer can't cut your pay without agreement, a staff member can't permanently work from home without agreement.

"Basically, If you are required to be in Melbourne, and that's your location-based contract,you can't unilaterally vary that by going to Castlemaine," she says.

"There could be consequences to that, meaning your employment contract may be repudiated by your employer."

Ms Bytheway saysan employee who did face apay cut because of working from homecould argue that their living costs, like electricity bills, had become more expensive.

If you can't reach agreement with your boss, the contract could be terminated.

Similarprinciples apply.

"If the employer were to seek to have differential pay rates, depending on whether you worked at home regardless of your geographical location,that might bring into playa number of other complex legal questions," Mr Annson says.

"The employer could be exposed to legal action, including under anti-discrimination law."

His advice is to seek advice from a lawyer and/or union.

Google has ruled out introducing the policy for its Australian staff.

In the experience of recruitment agency directorPeter Salt, local companies are taking a different approach.

"I've got two examples of executives being employed in Dubbo and Riverina on the same salary packages as if they were based in the city," he says.

Mr Salt says the pandemic has resulted in bosses finally understanding that working remotely doesn't lead to a drop in productivity.

"It actually increases," he says.

He says a"chronicshortage" of skilled workers meansemployers are now more likely to includesweeteners to attract good talent.

"Any employer that thinks they'll get away with being stingy is going to miss out."

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Google is planning to cut people's pay for working from home. Could it happen here? - ABC News