SPC has implemented the mandate as it believes it is a reasonable and lawful direction for its employees, Mr Giles said, but experts are divided on if the company is right.

Slater and Gordon head of employment law Andrew Rich said usually employers can ask their workers to get vaccinated if it is to protect people they are servicing, like aged care workers or front-line medical staff.

Whether the order was reasonable turned on a number of factors, he said, such as the level of Delta circulating in the community, the medical condition of a worker challenging the directive, the condition of the customers being served by the business and whether the business could operate safely through measures like social distancing.

However, he acknowledged there was no “black and white” answer to the issue. Top silk Arthur Moses SC recently backed employers in making vaccines mandatory, noting employees were required to comply with ‘lawful and reasonable directions’ of their employer.

SPC is currently consulting with the union and employees about the policy. Any employee with a pre-existing condition who is unable to receive the vaccine will be considered on a case-by-case basis.

Mr Giles said issues around indemnity for employees if they suffer side effects from the vaccine would be worked through as they arise.

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Employers in Australia have so far been reticent to float the idea of mandatory vaccinations for staff, with many citing the legal concerns under the country’s workplace laws. Some are also worried it could throw up privacy issues or leave the company open to unnecessary attacks from groups who are opposed to the vaccine.

SPC was not concerned about the views of fringe groups, Mr Giles said, though some were already starting to make a “bit of noise” about the company’s decision.

“This is obviously something that they’ll jump on so we’re expecting some adverse reaction,” he said. “But we’re a company based in science, and the science says we should be vaccinated.”

Major retailers such as Coles, Woolworths and Wesfarmers have so far only “strongly encouraged” staff to get vaccinated, with Wesfarmers boss Rob Scott telling The Age and The Sydney Morning Herald last week it was premature to discuss the possibility of mandating vaccinations.

However, employers overseas aren’t as hesitant, with some of America’s largest employers feeling compelled to act now as Delta infections surge in the world’s largest economy. Last week, Google said it would require employees who returned to the company’s offices to be vaccinated, while Disney announced a mandate for all salaried and nonunion hourly workers who work on-site.

Yesterday, tech giant Microsoft said it would also require proof of vaccination to enter its sites in the US.

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