By Aimee Elia - 18 May 2020
The government's Wage Subsidy Scheme
is intended to assist businesses retain employees during the
COVID-19 crisis by helping the employer to fund those salaries and
wages. The scheme has now been extended for a further eight weeks
for businesses that meet the new, more stringent eligibility
criteria. Businesses will be able to apply for the extended subsidy
from 10 June 2020.
As with the initial Wage Subsidy Scheme, employers are obliged
to pass the subsidy onto their employees and retain those employees
for the duration of the subsidy. Employers must also do their best
to pay employees at least 80% of their normal pay.
If your employer is receiving the subsidy but your income still
dropped below 80% that does not mean your employer has breached the
scheme providing it used "best endeavours" to pay you and you are
receiving the full benefit of the scheme which is $585.80 for
employees working at least 20 hours per week or $350 per week for
people who work up to 20 hours per week.
Your employer must pay you at least minimum wage ($18.90 per
hour from 1 April 2020). This means that if you are only receiving
the subsidy (for full time employment), you should not be required
to work more than 31 hours per week as doing so, would push your
income below the minimum wage.
If your usual wages are less than the subsidy, your employer is
entitled to retain the difference to support other wage payments
within the company.
Although employers are required to retain their employees for
the duration of the subsidy, this does not mean that employees are
guaranteed continued employment. Rather, employers who have to make
staff redundant during the subsidy period will have to repay the
balance of the subsidy.
This note is only an overview of the scheme. If you have a
specific queries, we recommend you seek legal advice.
Contacts
Aimee
Elia
Claire
Mansell