Government’s Covid-19 response – the latest update
The following is a summary of the most recent announcement made by the Government in response to the Covid-19 pandemic:-
The pandemic unemployment payment for employees who have been laid off due to the impact of Covid-19 has been increased to €350 per week from the 24th of March. This is a flat rate irrespective of the earnings of the employee. This payment will continue as long as the emergency remains in place.
The Government has introduced a new national Covid-19 income support scheme which can be summarised as follows:
- The Government will reimburse an employer up to 70% of an affected employee’s take home income up to a maximum weekly tax repayment of €410 (this equates to 70% of an employee on a salary of €38,000 per annum). The subsidy for employees on salary of greater that 38k is €350.00 and there is no subsidy for employees earning in excess of €76,000.00
- As a condition of this subsidy the employer is expected to make best efforts to maintain as close as possible to 100% of the employee’s normal income.
- The employer must self-declare to the Revenue that they have experienced significant negative economic disruption with a minimum of 25% decline in turnover and an inability to pay normal wages or their outgoings. The payment will only apply to employees who have been on the payroll in February 2020.
- Employers should be aware that pre Covid if they decided to lay-off their employees or put them on short-time for four or more consecutive weeks or six or more weeks within a thirteen week period an employee could seek to be made redundant. This entitlement on the part of the employee has been suspended during the Covid crisis,
- In the event, that an employer is obliged to make an employee redundant, employees who have two years or more continuous service will be entitled to a statutory redundancy payment calculated at two weeks’ pay (capped at €600 per week) per year of service plus a bonus week.
The employer must be able to satisfy the test that the redundancy is genuine and that it is the role that has been made redundant and that there has been a fair process before the employee in question was selected.
For further information on this or any employment matters please contact Brendan Dillon or Niall MacCarthy on 01 2960666
