Dáil Éireann Debate, Wednesday - 27 May 2020
55. Deputy Michael McGrath asked the Minister for Finance if he will address a matter raised in correspondence (details supplied) relating to the temporary wage subsidy scheme; and if he will make a statement on the matter. [7328/20]
View answerThe Deputy will be aware that the Temporary Wage Subsidy Scheme (TWSS) was legislated for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020 and that the TWSS is an emergency measure to deal with the impact of the Covid-19 pandemic on the economy. Of necessity, the underlying legislation and the scheme itself were developed quickly, having regard to the Government objective of getting assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions introduced in response to this Public Health emergency.
The TWSS builds on data returned to Revenue through its real-time PAYE system. It must be accepted that the underlying legislation and the scheme itself cannot be tailored to meet every individual unique set of circumstances for either employers or employees. A key element of the eligibility is that the employees were on the payroll at 29 February 2020. This requirement together with the other eligibility requirements for the TWSS were particularly designed as safeguards against abuse of the scheme.
Accordingly, the TWSS can only operate in respect of an employee, whether full-time or part-time, who was on the payroll of the relevant employer as at 29 February 2020. Craft Apprentices alternate between ‘on-the-job’ training with an employer and ‘off-the-job training’ in an education centre. The employer pays the Apprentice while she/he is being trained ‘on-the-job’ and a training allowance is paid through the Education Shared Business Services Unit of the Department of Education and Skills while the Apprentice is attending ‘off-the-job’ training.
Eligible employers can participate in the scheme in respect of any eligible Apprentice who was on the payroll at 29 February 2020. Apprentices who were not on the payroll of the employer at 29 February 2020 are not eligible employees for the purposes of the TWSS. Furthermore, the wage subsidy per employee is calculated based on the net pay reported by the employer for January and February 2020. The scheme does not distinguish between periods in ‘off-the-job’ training where the Apprentice was not in receipt of a wage from the employer and was not therefore reported on the payroll of the employer and so from an operational standpoint the employer would have no basis period on which to base the wage subsidy. Accordingly, the TWSS can only operate in respect of an Apprentice, who is on the payroll of the employer as at 29 February 2020.
The question of an individual’s entitlements in an employment context following his or her resumption of duty after a period of training, and the question of what wage amount an employer may or may not be in a position to pay such an Apprentice in the light of the impact of the Covid-19 pandemic on the employer’s business, are matters that are outside the remit of the TWSS. Those employees who are laid off following such a resumption of duty would be entitled to claim the Pandemic Unemployment Payment from the Department of Employment Affairs and Social Protection.
