Covid-19 – Update #1 - Short and Useful

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With the impact of Coronavirus being felt far and wide, we are being asked questions by a number of employers.  With all of the information available it’s a little bamboozling.  We’ve tried to decrypt this for you.

Government Support Package

Details about the Government’s Support Package announced on 17 March is summarised below:

Check out MSD’s information on wage subsidies and leave payments.

https://workandincome.govt.nz/documents/eligibility/emergencies/covid-19/wage-subsidy-and-leave-payment-employer-support-factsheet.pdf

The IRD have tax support available.  Check out their website:

https://www.ird.govt.nz/covid19

Both agencies are updating their websites regularly.  Keep an eye on them.

Wellbeing

We are all worried to varying levels.  This is OK.  Keep checking in and talking to people, particularly if someone is self-isolating or very worried about the whole situation.  We can’t underestimate the importance of supporting and caring about each other right now.

Working from home 

Can you and any of your team work from home for a period of time?  We realise that this won’t suit all business but where it does, this might be a great option.

Think about:

  • Technology (devices, servers and internet access)

  • Privacy and security obligations

  • The importance to employees switching off

  • Keep in touch with each other (phone, video, team chat)

Reducing wage/salary costs

If you need to look at wage/salary costs, you could consider the following:

Leave

  • Employees taking accrued/entitled annual leave – we realise this might be a cost which you could not afford.

  • You can agree with all or some employees to take a period of unpaid leave (e.g. 4 weeks).

Temporary Working Arrangements

  • You could agree with all or some employees to a temporary variation to their work, e.g. reduced hours or reduced pay for a period of time.   This all needs to be agreed in writing between you and each employee.

  • Agree to do different work as their normal work might not be available.

Redundancy

This is worst case and we know no one wants to think about this.  We encourage you to be aware of what this might involve.

There is a process here and even in these unusual times, you should still follow a good process. First step is to check your employment agreements for redundancy and notice period clauses. 

It’s essential that you talk to your teams about what you are proposing before making a final decision.  You also need to document what you are discussing and any final decisions that are made.

We can talk you through the process.

Robyn Young