Do you have to pay out the COVID-19 Wage subsidy to an employee that has been made redundant?

Recent information has become available from MSD regarding the pay-out of the COVID19 wage subsidy to employees that have been made redundant during the period the employer has been receiving the COVID19 Wage subsidy.

Remember first, that you have an obligation to retain those employees that you are receiving a subsidy for.

If you have to make an employee redundant during the subsidy period, you may:

• use the wage subsidy to pay the employee any notice period arising from the redundancy, and

• you must repay any balance of the Wage subsidy that’s left after the notice period has been paid, to MSD.

You cannot use the Wage subsidy to make any contractual redundancy payments to an employee.

If you need to chat about this or any other HR, Payroll, recruitment or temp staffing matters – give us a call.

Julia Palmer MHRINZ DIRECTOR / CONSULTANT M 027 595 0146 T 04 293 4833 Unit 13A, Copperfield Gardens 7 Seaview Road, Paraparaumu Beach www.starpeople.nz