COVID -19 - Employment Related Schemes and staying within the Law


Most businesses are facing difficulty and uncertainty at this time. Many businesses have closed and others are operating at limited capacity.

Some employers have had no option but to make some or all of their employees redundant or issue them with temporary lay-offs. In other instances some employers continue to employ and pay staff with the help of government Employment Related Schemes.

We are advising clients on these schemes to include employment legal obligations on managing employees during this crisis.

For employers who are still operating they are encouraged to allow and facilitate staff to work from home. Employees should be issued with guidelines on working from home to include guidelines on confidentiality and data protection. Employees should not be allowed to remove original files and papers from the office except in exceptional circumstances.

The government has introduced 3 Employment Related Schemes arising from COVID 19

  • Temporary Wage Subsidiary Scheme
  • Pandemic Unemployment Payment and
  • Illness Benefit

 Illness Benefit

The standard illness benefit is €203.00 per week.

 In the case of the CORONA virus the rate applicable if €350.00 per week.

If you are self-isolating it is payable for a maximum of 2 weeks and for a maximum of 10 weeks if a person has been diagnosed with COVID-19. It appears from Revenue guidelines that you can claim a maximum of two periods of self-isolation. In support of your claim you must submit a letter from your Doctor or a letter or text from the HSE.

 Pandemic Unemployment Payment- PUP

This is a payment of €350.00 per week to employees and the self-employed who have lost their job on or after13 March 2020 due to the COVID-19 pandemic.

A person is not entitled to PUP unless they are laid off from work or made redundant. If you voluntary left your employment you cannot avail of PUP.

Temporary Wage Subsidiary Scheme

This scheme assists employers to pay their employees during the current pandemic.

Employers will be refunded up to 70% of an employee’s “net wages” up to a maximum of €410 per week.

There are 4 qualifying criteria:

As an employer you must show that the pandemic has had:-

  • Significant impact on your business
  • Resulted in a loss of trade of at least 25%, and
  • Unable to pay normal wages

“Significant” not defined

Cash reserves are not a bar to claim the subsidy if the cash is required for debt payment, settle a claim etc.

The scheme is subject to Revenue audit in the future. If eligibility is applied incorrectly you may have to refund the Revenue any improper payments and be subject to penalties.

 Points to Note

  1. In some instances an individual employee may be financially better off claiming PUP instead of being on the Temporary Wage Subsidiary Scheme. An employee cannot decide which scheme they would prefer. The employer does not need the consent of the employee to avail of the Temporary Wage Subsidiary Scheme. If an employee refuses to go on the Temporary Wage Subsidiary Scheme they have voluntary left their employment and hence cannot avail of PUP.
  2.  Net weekly pay is the average net weekly pay for the months of January and February 2020 to include bonuses and over time.
  3.  Employees must get the full benefit of the subsidy into their pocket
  4.  When deciding who to lay-off or make redundant, make sure to comply with all applicable legislation to include the Employment Equality Acts.

Please email us if you would like to be on our mailing list for future publications and webinar invitations. owen@swainesolicitors.ie

 


 

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