Chris Andrews
Question:42. Deputy Chris Andrews asked the Minister for Finance if staff can remain on the temporary wage subsidy scheme as a transition or if they revert back to ordinary employment immediately. [10555/20]
View answerTuesday, 16 June 2020
Questions (42, 71)
Bernard Durkan
Question:71. Deputy Bernard J. Durkan asked the Minister for Finance if on their return to work, employees in the construction sector can expect to operate on the basis of a normal wage inclusive or exclusive of a pandemic unemployment payment; and if he will make a statement on the matter. [10800/20]
View answerWritten answers
I propose to take Questions Nos. 42 and 71 together.
The Temporary Wage Subsidy Scheme (TWSS) was introduced on 26 March to support firm viability and preserve the relationship between the employer and employee insofar as is possible by subsidising a portion of the employer wage bill in circumstances where the employer’s business has been negatively impacted by the restrictions that have had to be introduced to stop the spread of the COVID-19 virus.
When originally announced, it was expected that this economy wide measure would be in place for 12 weeks until mid-June. Having regard to the novel circumstances surrounding the re-opening of the economy as well as the need to avoid the risk of forcing otherwise viable firms to close, the Government has decided that the TWSS will remain until the end of August.
The key prescribed conditions of the scheme are that –
- the business is suffering significant negative economic impact due to the pandemic and is unable to pay normal wages to employees, but wishes to continue to employ the employees and is making best efforts to continue to pay some wages to the employees,
- the employees were on the payroll at 29 February 2020, and
- the employer had fulfilled its PAYE reporting obligations for February 2020 before, in general, 15 March 2020, but recently extended to before the 1 April 2020.
In terms of Deputy Andrews' question, employee eligibility for the scheme does not depend on that person being absent from the workplace. Eligible employees who return to the workplace will continue to be eligible for the TWSS provided that the core criteria for qualification for the scheme continue to be met.
Similarly, former employees who were on the employer's payroll on 29 February and who subsequently availed of the Covid-19 Pandemic Unemployment Payment (PUP) may return to that employment and be eligible for the TWSS. A person ceases to be eligible for the PUP from the date they return to employment.
I might add that the position in relation to the TWSS does not affect any legal obligations that the employer may have to their employee as regards any terms, conditions or entitlements of their employment, including pay. The question of an individual’s employment entitlements following their resumption of work and the question of what wages an employer may or may not be in a position to pay such an employee are matters between the employee and the employer. However, the employer is expected to make best efforts to maintain the employee’s net income as close as possible to normal net income for the duration of the Subsidy period.
Finally, there is no minimum amount that the employer must pay as an additional payment in order to be eligible for the scheme, but for Revenue operational systems reasons the employer will need to enter at least €0.01 in Gross Pay when running its payroll.