COVID-19 - Update on leave scheme for essential service workers

Following on from my earlier blog post about vulnerable essential service workers and employer questions (https://www.rachelwebster.net/blog/2020/3/30/covid-19-vulnerable-essential-service-workers-employer-questions), as anticipated, the Government have now put in place a scheme to support these vulnerable workers (and people who live with them) who take leave from work in the current circumstances (in line with Government and health advice).

The Government have announced the Essential Workers’ Leave Scheme (the Scheme) which is open for applications from midday on Monday, 6 April 2020. Guidance is being prepared for release prior to applications opening, but at the current time here are the key details:

Which employers does the Scheme cover?

The Beehive release stated “A number of essential businesses are still operating but, are facing a significant loss of business. This scheme is for them and allows them to pay those workers who need to take leave due to the COVID-19 Public Health guidance…”. We are yet to see the application criteria – but this statement appears to indicate that the employer will still need to declare it has had a loss of income to be able to apply.

Which individual employees does the Scheme cover?

• Workers who are self-isolating in accordance with public health guidance because they have contracted the virus or have come into contact with someone who has contracted the virus (or have a dependent they need to care for who is sick or self-isolating);

• Those deemed at higher risk if they contract COVID-19, in accordance with public health guidance and as such should self-isolate for the duration of the lockdown (and potentially longer);

• Those who have household members who are deemed at higher risk if they contract COVID-19, in accordance with public health and as such should self-isolate for the duration of the lockdown (and potentially longer) to reduce the risk of transmitting the virus to that household member.

What does the employee get paid?

For full time employees who would usually earn less than $585.50 or part time employees who would usually earn less than $350 per week, they get their usual weekly pay.

For employees who earn more than these amounts, the Beehive’s announcement on this is not entirely clear. The Beehive have stated in these cases the employer should pay workers “A minimum of the full leave rate, if the workers’ usual income before COVID‑19 exceeds the relevant rate, and in that case also make best endeavours to pay at least 80 percent of the workers’ usual income before COVID-19”. This will no doubt be subject to clarifications by the Government just as the wage subsidy scheme was. It seems to me the intention is the same as that behind the wage subsidy. That is, the business should pay their employee 100% of their usual weekly earnings pre-COVID-19 and if that’s not possible it should use its best endeavours to pay as much as possible and in no case pay less than the subsidy amount received by the business for that employee.

Employees who are on other forms of paid leave should be paid at their usual full rates of pay.

How long does the person get paid?

The business will get a payment for a 4-week period. Businesses can re-apply for those same workers after 4 weeks, or make further applications for additional workers who are eligible at any time, while the Scheme remains open.