Article:

Wage Subsidy FAQs

02 June 2020

Read the Wage Subsidy frequently asked questions on the following topics:

  1. Eligibility criteria
  2. Application process and evidence
  3. Declaration and privacy
  4. Wage subsidy repayment
  5. Employer obligations and employee entitlements
  6. Calculating ordinary pay and payroll treatment
  7. Essential workers

Information included in this insight was last updated on 02.06.2020

 

Eligibility Criteria

 

My company operates two service lines. One division has had a 100% drop in revenue, the other has only experienced a 5% drop in revenue. Can I claim the wage subsidy?  

 

Revenue means the total amount of money a business (both service lines) has earned from its normal business activities, before expenses are deducted.

This revenue reduction must be 30% across the whole business

 

I will not have a reduction in revenue due to the nature of my business, however COVID-19 will affect my business negatively after 9th June 2020. Am I eligible for the wage subsidy?

 

To apply for the wage subsidy, you are declaring that you will have a 30% drop in revenue in any one month (30 day period) between January 2020 and 9 June 2020.

If the drop in revenue is outside this period you cannot apply for the subsidy.

What does it mean by one month for the purposes of calculating the revenue drop? Is this a calendar month?

 

One month means either a calendar month or any 30 day period occurring between January 2020 and 9 June 2020.

 

Can I claim the wage subsidy for a new employee?

 

Yes – there is nothing to preclude you from applying for the wage subsidy for a new employee.

You can submit an application for the new employee provided you meet the eligibility criteria and sign the declaration regarding your obligations to them for the next 12 weeks.

 

How do I determine if my casual employee is eligible for the full-time or part-time wage subsidy?

 

You should calculate the average hours per week the employee has worked over the last year (or full length of employment if this is less then 1 year), and apply on that basis.

 

My business has experienced significant growth since last year. Can I still apply for the wage subsidy even though my revenue is significantly higher than last year?

 

Businesses that can demonstrate a 30% decline in revenue attributable to COVID-19, and who meet the other eligibility criteria, can apply for the wage subsidy.

For businesses that have traded for less than 12 months or have experienced high growth, the business can calculate the 30% decline in revenue using a similar month or any 30 day period within the last 12 months of trading (e.g. comparing February 2020 to March 2020).

 

I am a new business, so I have no revenue for the prior year to test my eligibility against for the wage subsidy. What do I do?

 

Businesses that can demonstrate a 30% decline in revenue attributable to COVID-19, and meet the other eligibility criteria can still apply for the wage subsidy. The 30% decline in revenue should be compared to a similar month (or 30 days) of trading (e.g. comparing February 2020 to March 2020).

 

Does my business or legal structure preclude me from receiving the subsidy?

 

At the highest level, the intention of the wage subsidy is to keep people employed through these difficult times.

The specific legal structure of your business, or specific employee & contractor agreements, should not preclude you from being eligible.

The wage subsidy is designed to be accessible by all NZ employers with NZ employees.

So, you can be an incorporated society, trust, charity, etc and still qualify. A sole trader or contractor will claim for themselves and any staff that they employ.


The wage subsidy will not apply to any state sector employers.

What are State Sector Employers?

State sector employers include the following;

  • Government agencies
  • Crown entities eg Kāinga Ora, ACC
  • Schools
  • Tertiary Education Institutions such as:
    • Universities
    • Polytechnics/Institutes of Technology
    • Wānanga

 

Private businesses contracted to provide services to state sector employers (e.g. Cleaning, security) are not state sector employers, and can apply for the wage subsidy provided they meet the other criteria.

 

How do I calculate whether revenue has dropped by 30% or more?

 

The employer/business must have experienced a minimum 30% decline in actual or predicted revenue over the period of a month (30 days) when compared with the same month last year.  That decline must be related to COVID-19 and must occur between January 2020 and 09 June 2020.

If the employer has been in operation for less than one year, and therefore cannot demonstrate a 30% decline in revenue on a year to year basis, they are able to use a previous month as the best estimation to demonstrate the loss (i.e. comparing February 2020 to March 2020). This comparison can also be used for employers who have experienced high growth since last year.

Revenue means the total amount of money a business has earned from its normal business activities, before expenses are deducted.

Practically, we envisage that income will be calculated on the same basis as it was in the month against which the comparison is being made.

As some employers/businesses still have their doors closed as a result of alert level 3, the definition permits a prediction of future revenue.

 

What does it mean to take active steps to mitigate the impact of COVID-19?

 

Your business must have taken active steps to mitigate the impact of COVID-19

This includes:

  • activating your business continuity plan
  • drawing from cash reserves (when appropriate)
  • making an insurance claim
  • proactively engaging with your bank or lender

In addition, you could also seek advice and support from:

  • BDO
  • the Chamber of Commerce
  • a relevant industry association
  • the Regional Business Partner programme

 

I am a beneficiary in a Trust and would usually receive a distribution on a regular basis. The Trust's revenue has been impacted by COVID-19 and I am no longer receiving my regular distribution. Do I qualify for the wages subsidy? 

 

Income allocated to the beneficiary of a Trust is generally discretionary. 

The income is not allocated due to personal efforts or work undertaken on behalf of the Trust. 

With regard to the definition of an employee (per the declaration), a beneficiary would not be included, and is therefore not able to receive this subsidy. 

 

My business is still open, and all my employees are working, but my revenue has decreased by more than 30%. Can I claim the wage subsidy?

 

Yes, provided a business meets the eligibility criteria, then all businesses (whether their employees are currently able to work or not) are able to access the wage subsidy.

 

Can you rehire employees that were previously made redundant, and get the wage subsidy for them? (Eligibility Criteria)

 

You can get the COVID-19 Wage Subsidy for employees that were previously made redundant provided; 

  • You rehire them before you apply for the subsidy 
  • The employee was employed by you as of 17 March 2020 
  • They were made redundant because of COVID-19 
  • And you had not previously applied for the COVID-19 Wage Subsidy for them. 

It is expected that employees and employers act in 'good faith' during this process, and that rehiring is done on at least the same terms and conditions.

The ordinary wages of the employee, for the purposes of the wage subsidy scheme, would be those as specified in the employment agreement as at the date the employment relationship ended. 

 

If the employee is on ACC (i.e. ACC is paying 80% of wages), can you still claim the Wage Subsidy for that employee?

 

No – the employer cannot claim the wage subsidy while the employee is on ACC. 

This is because the employer isn't required to make any payments in respect of that employee during that time. 

 

I engage contractors and deduct withholding tax on their payments. Can I claim the wage subsidy for them? 

 

Contractors are not employees and are considered to be self-employed.

You cannot claim a wage subsidy in respect of contractors. 

However, the contractors can apply for themselves using the Self-Employed Form. 

 

 

Application Process & Evidence

 

How do I know which application I should make?

 

 

Employment Relationship  Who should apply  What application should they use 
Company with employees  Employer (Company) should apply on behalf of the employees and any shareholder-employees  Employer 
Company (no employees)  Employer (Company) should apply on behalf of any shareholder-employees  Employer 
Partnership with employees  Employer (Partnership) should apply on behalf of the employees and any working partners  Employer 
Partnership (no employees)  Employer (Partnership) should apply on behalf of any working partners  Employer 
Sole Trader with employees  Employer (Sole Trader) should apply on behalf of the sole trader and employees  Employer 
Sole Trader (no employees)  Individual should apply  Self-employed (no employees) 
Trust with employees  Employer (Trust) should apply on behalf of the employees  Employer 
Self-employed person  Individual should apply  Self-employed (no employees) 
Contractor  Individual should apply  Self-employed (no employees) 

 

I applied for the Wage Subsidy Scheme but did not receive the funds for several days. When does the 12-week period start regarding my obligations under the declaration?

 

The Wage Subsidy is to support you to pay 12 weeks of wages for your employees from the date you submitted your application.

You must adhere to all other aspects of the declaration during this time.

 

I have 200 employees and the application form online will take me a long time to fill out. Is there a different way of submitting my application for the wage subsidy? 

 

Yes – there is a large employer form you can use to apply for the wage subsidy. 

You can follow the instructions set out on Work and Income's website 

 

I don't have an NZBN (New Zealand Business Number), can I still apply for the COVID-19 Wage Subsidy?

 

You are not required to have an NZBN to apply for the COVID-19 Wage Subsidy.

Entities that are not likely to have an NZBN include Trusts, Partnerships and Sole Traders.

NZBN has been changed to an 'optional' rather than 'compulsory' field in the wage subsidy application process so if you have an NZBN you should still fill out this field. 

If you would like to apply for an NZBN, you can do so here Apply for an NZBN

 

How long does it take to receive the subsidy?

 

WINZ administers the subsidies and while they have advised that they are making payments as quickly as they can they are not providing details of any particular timeframe.

 

Should I apply for this or ask my financial adviser to make the application?

 

We encourage you to complete the declaration (you need to sign the declaration) and seek guidance from us if you require.

 

I previously made an application for only some of my employees due to the subsidy cap that was in place. Do I need to apply for my remaining employees now?

 

Yes. The initial cap of $150,000 per business that was in place no longer applies; therefore all employers, contractors, sole traders, self-employed people, registered charities and incorporated societies can apply, without limit.

If you included all of your employees on your wage subsidy application, and MSD has capped the amount paid due to being over the cap, you don’t need to do anything. MSD will top up the difference and make payment to you directly.

If you have not applied for the wage subsidy in respect of all staff, you will now need to do this by submitting an additional application listing only those staff whom were not included on your previous application.

 

I don’t have any evidence to support my claim for the wage subsidy. What do I need to do?

 

When making the application you are signing a declaration that the application has been made in accordance with the eligibility criteria.

If you have provided false or misleading information, or receive any subsidy or payment that you were not entitled to receive, you may be subject to an investigation including for offences under the Crimes Act 1961.

Given this declaration, it is important that you review the criteria to ensure that you have evidence to support your claim.

Evidence will include documentation on how you arrived at a 30% drop in revenue – this should be self-evident for most employers who were unable to carry on their businesses during the Level 4 COVID-19 lock down period.

The active steps criteria will mainly include seeking advice from a third party, but may also incorporate all internal actions that assist with mitigating the impacts of COVID-19.

Therefore while you may not be required to submit the evidence with your application, it is crucial you get this information together as all payments made by the MSD are subject to an audit. Payments claimed in error may be subject to repayment.

 

I applied for the wage subsidy, but accidentally left off one of my part-time employees. How do I get the subsidy for them now, as it says you can only apply once?

 

You can contact the MSD directly and ask them to add on the additional employee, or fill out the application again for the employee you missed

You can contact MSD via the Work and Income helpline on 0800 40 80 40.

You can also use the MSD Feedback Form and select ‘Other Enquiries’

 

My employee works part-time for my company, but also part-time for another business. Can both businesses claim the Wages Subsidy?

 

You can apply for the part-time wage subsidy for the employee using the Employer Application.  

The other employer can also apply for the part-time wage subsidy for the employee using the Employer Application. 

If the employee is self-employed, they must apply for themselves on a part-time basis using the Self-Employed Application. 

 

 

Declaration & Privacy

 

Will information about my wage subsidy claim be made available to the public?

 

Yes - MSD have set up an Employer Search which is available to the public.

This will show the name of the company, the number of employees whom the claim was made for, and the total amount paid.

 

 

I applied for the wage subsidy on 26th March but didn’t receive the subsidy until 1st April – am I bound by the old or new declaration?

 

The declaration for the wage subsidy was amended on 27th March 2020 at 4pm.

You will be bound by the declaration you signed at the time of the application, noting that the declaration changed significantly on the above date.

It is not relevant when you actually receive the subsidy.

 

I don't have a copy of the declaration I signed; how can I get one?

 

The declarations are available online using the following link; 

 

Do I have to tell my employee if I included them in my application for the wage subsidy? 

 

As part of the declaration you made to access the wage subsidy, you declared that you had discussed with them their inclusion on your application and gained their consent to having their information shared with MSD.

Employees who have been included on your application should therefore already be aware of their inclusion. 

 

 

Wage Subsidy Repayment

 

I applied for the wage subsidy based on a predicted revenue drop of 30%. We managed to work from home and did not suffer the predicted revenue drop after all. Are we required to repay the wage subsidy?

 

If you predicted that your business would suffer a minimum of 30% decline in revenue, but the anticipated decline never arose, you may find you don’t qualify for the wage subsidy anymore (unless you are still expecting a 30% decline in any 30 day period leading up to 9 June 2020).

If you don’t think you are eligible for the wage subsidy anymore, you can repay it using the online form

You will need to include the following information in your email:

  • Business name
  • IRD number
  • New Zealand Business Number (NZBN), if you have one
  • Phone number
  • Email address
  • Postal address.
  • And advise the amount you need to repay

 

I applied for the wage subsidy based on an actual revenue drop of 30% in an appropriate month due to Covid-19.Now that we are back at work and trading as usual, are we required to repay the wage subsidy?

 

The eligibility criteria stipulates businesses that can demonstrate a 30% decline in revenue attributable to COVID-19, and meet the other eligibility criteria can receive the wage subsidy.

As you have demonstrated the actual drop in revenue, you are not required to repay any amount of the wage subsidy (regardless of the trading outcome in the following months).

 

My employee has voluntarily resigned from their employment, and I am currently receiving the wage subsidy for them. What do I need to do?

 

You must advise MSD that the employee has voluntarily left their employment with you.

You do not have to return the subsidy already received for that employee.

If you applied under the original declaration and it was capped at $150,000, you may be expecting further subsidy to be received. However, you should not claim any more subsidy for that employee.

The balance of the subsidy not paid to that employee, can be retained by the employer and must be used to assist with the payment of wages for other affected staff.

 

I claimed the leave support scheme and received the funds into my business. I had meant to apply for the wage subsidy. What do I do? 

 

Firstly, you will need to acknowledge that the Leave Payment was claimed in error. 

You can repay the funds using the online form

You will need to include the following information in your email:  

  • Business name 
  • IRD number 
  • New Zealand Business Number (NZBN), if you have one 
  • Phone number 
  • Email address 
  • Postal address
  • And advise the amount you need to repay

You can then apply for the wage subsidy under the normal application process. 

Please note that MSD may advise a different course of action throughout this process, and this has been supplied as a guideline only. 

 

If during the 12-week period, the business ceases to be viable, and I am forced to make some (or all) of my employees redundant before the end of the 12-week period, what effect will this have on the wage subsidy I received?

 

This would be a change in circumstance impacting on the eligibility for the subsidy.

MSD should be notified regarding the change, and the unused portion of the wage subsidy should be put aside to be repaid.

You can email COVID19subsidy_overpayment@msd.govt.nz  to disclose any mistake or overpayment.

  • You will need to include the following information in your email: 
  • Business name
  • IRD number
  • New Zealand Business Number (NZBN), if you have one
  • Phone number
  • Email address
  • Postal address
  • And advise the amount overpaid and why you need to pay it back.

 

Are employers expected to return the extra subsidies back to Work and Income where employees are working for a period of less than 12 weeks?

 

If you have to make an employee redundant (one for whom you are currently receiving the wage subsidy for), then you can use the wage subsidy to pay the employee any notice period arising from the redundancy.

Any balance remaining after the notice period has been paid, should be returned to MSD

You can repay the funds using the online form

You will need to include the following information in your email: 

  • Business name
  • IRD number
  • New Zealand Business Number (NZBN), if you have one
  • Phone number
  • Email address
  • Postal address
  • And advise the amount you need to repay

If an employee leaves voluntarily during the 12 week period (i.e. to take up another job, voluntarily resigns etc.) then you are not required to repay the subsidy already paid to you and can use these funds towards the payment of their other staff for whom the subsidy has been received.

 

What are the circumstances where I would need to repay the wage subsidy? 

 

  • you no longer meet the criteria for the subsidy () (e.g. where a 30% drop in actual or predicted revenue has not occurred)
  • you are no longer using the subsidy to retain and pay your employees 
  • you received insurance for costs which were also covered by the wage subsidy 
  • you provided false or misleading information in your application for the wage subsidy 

 

What happens if I cannot continue to employ those for whom I applied for the subsidy?

 

Any employer applying for the wage subsidy after 3pm on Friday 27 March 2020 must now declare that they will retain any and all staff included on their subsidy application for the full 12 week period.

If you are unable to retain your employees for the period in which the subsidy is to be paid, then you may be liable to repay some or all of the subsidy received.

For employers who applied for the wage subsidy prior to Friday 27th March, you should consult your employment lawyers regarding individual employment agreements, and your legal obligations concerning minimum pay and redundancy before terminating employment.

The ability to communicate clearly and effectively with employees is crucial during this time.

 

All of my employees are part-time and receive less than the value of the wage subsidy. What do I do with the excess? 

 

The funds (in excess of amounts paid to those employees) should be used to assist with the wages of other affected staff members in the first instance. 

Where there are no other employees, the excess funds should be held and returned to MSD.

You can repay the funds using the online form

You will need to include the following information in your email: 

  • Business name 
  • IRD number 
  • New Zealand Business Number (NZBN), if you have one 
  • Phone number 
  • Email address 
  • Postal address 
  • And advise the amount you need to repay

Note that wage subsidy funds cannot be used for anything other than the payment of wages to the employees named in your application. 

 

 

Employer Obligations and Employee Entitlements

 

Can I pay my employees sick leave while my business remains closed as a result of the national COVID-19 alert level?

 

Provided the day would have been ‘otherwise a working day for the employee, an employee may take sick leave if—

(a) the employee is sick or injured; or

(b) the employee’s spouse or partner is sick or injured; or

(c) a person who depends on the employee for care is sick or injured.

 

My business has opened back up in Alert Level 3. Can I continue paying my employees 80% of their normal wages now that they are working again?

 

The wage subsidy scheme does not change your obligations under employment law, nor does it change the employment agreement you have with your respective employees

Employees should be paid for all the hours they work, at their normal pay (unless otherwise agreed).

You can only amend an employee’s hourly rate or contracted hours of work by mutual agreement.

 

Can my employees take annual leave during Alert Level 4 or 3?

 

Employees can request to utilise their leave entitlements i.e. Annual Leave, Annual Leave in advance etc. 

These requests should be considered and paid in line with their individual employment agreements and the Holidays Act 2003. 

An employer must not unreasonably withhold consent to an employee’s request to take annual holidays. 

 

Do I need to pay my employees special leave if they cannot work during Alert Level 4  or 3? 

 

Employees can request special leave from their employer, however this would be by agreement with the employer, as there is no obligation for the employer to pay this. 

 

My staff are working from home, what do I need to pay them?

 

If employees are working from home during the lockdown, or otherwise working as usual, then they should continue to be paid as normal (unless otherwise agreed). 

Any amendments to an employee’s individual employment agreement are not a matter of right and we recommend you talk to your lawyer regarding your legal obligations. 

 

My employer is not paying me because the business is physically closed and I cannot work from home. Can I go on an unemployment benefit instead? 

 

While you remain an employee of the business, you will not be able to access an unemployment benefit. 

Check if you are eligible for a benefit

 

My employees are not able to work at the current alert level, what do I need to pay them?

 

If employees cannot work from home, and the business remains physically closed, then there is no legal requirement to pay the employees. They are ‘ready and willing’ to work, but they are not ‘able’ to work. 

We suggest you seek legal advice on this matter, and could enter words such as “employers obligations during lockdown” into an internet search, as a starting point.

However, if the employer has claimed the Wage Subsidy, they have made a declaration to use their best endeavours to pay employees at least 80% of their normal wage. 

 

Calculating Ordinary Pay & Payroll Treatment

 

Should I pay the wage subsidy to my employees as a lump sum?

 

The wage subsidy is designed to assist the employer with the payment of wages, and to help retain their employees, for the 12 week period to which the subsidy relates.

We recommend that you continue to pay your staff in line with their normal pay cycle as opposed to making a single lump sum payment.

You should consult your BDO advisor regarding implications of paying the subsidy as a lump sum, which may include additional tax and Student Loan implications for your employees.

 

I have applied for the wage subsidy for my casual employee. Should the 8% holiday pay be paid on top of the subsidy amount? 

 

The employee should be paid their casual holiday pay on top of the subsidy (or any amount that has been paid). 

 

Do I need to pay PAYE on top of the subsidy amount, or is it inclusive?

 

The wage subsidy is a gross payment, and the relevant employee deductions should be paid from this amount (not on top of it).

Note the employer kiwisaver contribution, ESCT and other similar items would be paid on top of the subsidy amount.

 

Do I have to pay my employee 80% of their normal wages? What if all I can afford is to pass on the value of the wage subsidy?

 

If your business is receiving the Wage Subsidy, you must make your best efforts to pay your employees at least 80% of their normal wages. 

If that is not possible, you need to pay them at least the full value of the subsidy (or 100% of their normal wages if this is less than the subsidy that you are receiving for them).

 

My employees have requested annual leave and/or sick leave. Can I use the wages subsidy to pay these? 

 

Wages includes the payment of annual leave and/or sick leave as appropriate.  The wage subsidy can be used to pay for these.

 

If the wage subsidy is more than my employee would normally be paid, what do I need to pay them?

 

If you applied for the wage subsidy after 4pm on the 27th March 2020, you declared that you will, for the period you receive the subsidy, pay at least the full amount of the subsidy to the employee.

However, where the ordinary wages of an employee is below the amount of the subsidy, pay the employee that amount. 

You can use any remaining subsidy to assist with the wage obligations for other affected staff.

 

How do I treat the subsidy with regards to my payroll?

 

The payment to staff is quite separate to the receipt of the subsidy. 

The receipt of the subsidy is exempt from tax in the hands of the employer.

Any wage payments made to employees will form part of their taxable income and, regardless of the amount to be paid, should have the appropriate PAYE, KiwiSaver etc. deductions applied. The net payment is what goes to the employees.

The payment to the employee is non-deductible to the employer, up to the amount of the wage subsidy received. Therefore, from an income tax perspective, businesses will need to be able to clearly identify the amount of remuneration paid to employees that had been generated from the wage subsidy.

 

  Subsidy Type
Wage Leave
Taxable income for employer? No No
Subsidy attract GST for employer? No No
When employer pays employee, is the employee subject to tax? Yes Yes (i.e. Employer deducts paye/KS etc when they pay staff as normal but it will be tricky to separate things in the normal payroll. 
Is the subsidy deductible to employer when paid to employee? No No 

 

I am a self-employed person and receiving the full-time wage subsidy or $585 per week. Is the amount received for the wage subsidy treated as income?

 

Yes, the wage subsidy received will be treated as taxable income to the self-employed person, as it is a payment that replaces loss of earnings.

 

I have an employee who works variable hours. How do I calculate their ordinary pay? 

 

In this instance, you should look at the number of hours the employee would usually work for the business and calculate the average. 

Use the average hours worked each week: 

  • over the last 12 months, or 
  • over the period of time they have been employed (if it is less than 12 months). 

If the average hours are: 

  • 20 or more, apply for the full-time rate 
  • less than 20, apply for the part-time rate. 

 

My employee is on minimum wage, what happens when the rate increases?

 

For employees working; 

If the employee is working, they need to be paid the new minimum wage for each and every hour that they work as of 1st April 2020. 

If the employer cannot process the minimum wage raise in time, they can process it as soon as they are able to do so, having regard to safety and any restrictions under the various Alert Levels.

Employers will need to pay employees back for any hours worked at the new rate that wasn't processed on time. 

 

For employees not working; 

The employer is obliged to make best efforts to pay 80% of the pre-COVID-19 income, which will be at the rate they were receiving on 26th March 2020. 

Therefore, the minimum wage raise will not take effect until the employee starts working again

 

I have received the wage subsidy for my employee, and this is more than they would ordinarily be paid, what do I need to pay them? 

 

If you applied for the wage subsidy after 4pm on the 27th March 2020: 

Where the ordinary wages of an employee are below the amount of the subsidy, then the employee should be paid 100% of their normal wage. 

 

If you applied for the wage subsidy prior to 4pm on the 27th March 2020: 

You declared that you would make best endeavors to pay 80% of the ordinary wages for all employees named in your application. 

That may mean, you are paying 80% of the ordinary wage, even though the subsidy could cover 100% of their wage. 

 

 

My employee is paid Minimum Wage and works for 40 hours per week. Am I allowed to pay her 80% of her normal wage and still have her work the same hours?

 

No – Employees working from home, or working as usual for an essential service, should be paid their ordinary pay (unless otherwise agreed). 

Employees cannot be paid below the minimum wage when they are working, regardless of the circumstances. 

 

Can I change my employee’s hours or pay without asking?

 

No - an employee's hours or pay cannot be changed without the employee’s agreement. 

In the event that the employee's contract permits the employer to make this change, the employer must still act reasonably and in good faith. 


Essential Workers

 

I am an essential business and I have employees who can’t come to work because they are over 70, sick or vulnerable, how do I pay these employees?

 

From Monday 6 April at midday, you can apply for the new leave scheme for essential workers.  You will be able to receive $585 or $350 gross for a 4 week period to pass onto these employees while they stay at home.  You should consider whether you can top up their pay to 80% of their normal income.  After 4 weeks, you can re-apply for these employees as well as any other employees that later fall into this category.

 

How do I know if my employees are vulnerable?

 

The scheme applies to workers who are required to self-isolate (or have a dependent who is self-isolating), those who are deemed higher risk of contracting Covid-19 and those who have a household member in their bubble who is higher risk.  Those at higher risk include employees over 70, employees with underlying medical conditions, people undergoing treatment for cancer or blood conditions, pregnant women and employees without easy access to healthcare.  Your employee who is vulnerable does not need to be registered with Healthline.

 

Does my essential business need to be suffering a 30% decline in actual or predicted revenue as a result of Covid-19 to apply?

 

No, but you need to be unable to financially support your employee while they are at home due to the cost of paying for replacement staff.

 

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