27 March 2020
We are pleased to report that the Government has made some changes to the wage subsidy scheme this afternoon. As this is an important change for many of our members, we felt that it was important to advise you of this immediately.
When you access the wage subsidy scheme you must still undertake best endeavours to pay employees 80% of their pre-covid income. However If you are a business that has little income due to the covid-19 shutdown, and workers are not working any hours, you can now pay the wage subsidy only to your employees. You must undertake to keep employees in employment for the period of this subsidy. Please see the press release from the Minister of Finance here.
We have been fielding a lot of enquiries on this issue and we have been advocating for you directly with Government, and so we are pleased to see this option is now being offered.
We hope that this will provide the breathing space that you need right now.
If you would like an update on the Covid-19 issues for business, please access our Covid-19 Resources.
If you need any advice, please talk with our lawyers.