If my employee is off work to get a COVID test, should I use their sick leave or The Short-Term Absence Payment to pay them?
The Short-Term Absence Payment should be used to cover the cost of workers who:
– are entitled to paid sick leave; or
– aren’t eligible for sick leave or have used up their paid sick leave.
If your employee has sick leave available and you are receiving the Short-Term Absence Payment, you should use this to pay their entitlement while they are waiting for a test result. If you unsure about how to approach your situation, we recommend getting in touch with Work and Income.
Who can get the COVID-19 Short-Term Absence Payment?
The COVID-19 Short-Term Absence Payment is available for businesses (including self-employed) to help pay their people while they wait for a COVID-19 test result. It’s to help businesses keep paying eligible workers:
– who cannot work from home, and
– need to miss work to stay home while waiting for a COVID-19 test result (in line with public health guidance).
What are my obligations when I receive the Short-Term Absence Payment?
Normal employment law applies to all employment relationships – regardless of the circumstances that we find ourselves in. This includes anything that has been agreed to in an employment agreement. For more information about your obligations, head to Employment NZ.
How much can an affected employee receive from the COVID-19 Leave Support Scheme?
The Leave Support Scheme will be paid a flat rate of:
– $585.80 (gross) per week for people working 20 hours or more per week (full-time rate)
– $350 (gross) per week for people working fewer than 20 hours per week (part-time rate)
NOTE:The Leave Support Scheme is paid as a lump sum and covers four weeks per employee from the date you submit your application. You can re-apply for the scheme for the same employee in their fourth week of the payment period, if necessary.
How do I qualify as an eligible employer for the COVID-19 Leave Support Scheme?
The scheme is open to New Zealand businesses (other than in the state sector) that meet the usual criteria. If you apply for the scheme before 1pm on 21 August 2020, you will not need to meet on the of two tests below:
– experienced a minimum 30% decline in actual or predicted revenue over the period of a month when compared to the same month last year, and the revenue loss is related to COVID-19; or
– had your ability to support your employee to take leave negatively impacted due to the COVID-19 public health restrictions.
if you apply for the scheme after 1pm on 21 August 2020, you will not need to meet these tests. You can’t receive the Leave Support Scheme if you’re already getting other COVID-19 payments like the Wage Subsidy Extension or the Resurgence Wage Subsidy for the same employee at the same time.
What are my obligations as an employer when applying for the COVID-19 Leave Support Scheme?
Before applying for this scheme, you must have discussed the application with the affected employee, obtained their consent, and agree they fall into one of the eligible groups. You should also have explored other ways to support them (e.g. paid leave options such as existing sick or annual leave entitlements). Regardless of whether you applied for the previous Essential Workers Leave Support or the renamed Leave Support Scheme, the way you pay your employees has not changed:
– You must try your hardest to pay the employee named in your application at least 80% of their usual wages or salary; or
– If that isn’t possible, you must pay at least the rate of the Leave Support Scheme (unless the employee’s usual wages or salary is lower, in which case to continue paying their usual wages or salary).
Note: Neither you or your employee need to provide medical verification to the Ministry of Social Development. When you apply, you will need to confirm that you have read, understood and agree to a declaration, including declaring you’ve confirmed with your employee that they meet Ministry of Health guidelines. You can find a complete overview of your employer obligations and a copy of the relevant declaration here.
How much can I get for the Short-Term Absence Payment?
If your application is approved you can receive a one-off amount of $350 for each eligible worker. This is regardless of whether they’re working full or part-time.
When will I receive the payment for the Short-Term Absence Payment?
Work and Income are working hard to process and make payments as soon as possible. Once your application is approved, you’ll receive a confirmation email.
How can I apply for the Short-Term Absence Payment?
Businesses (including self-employed) can apply for the Short-Term Absence Payment on the Work and Income website.
How do I apply for the COVID-19 Leave Support Scheme?
Only employers can apply for the Leave Support Scheme (not the individual employee). When you’re ready to apply, you will need to complete the relevant online form on the Work and Income website.
Does the employee continue to accrue annual leave while they receive the COVID-19 subsidies?
Short answer, yes they do. One of the obligations Work and Income states for receiving the Wage Subsidy (or other COVID-19 subsidies) is that you will not make any changes to your obligations under any employment agreement, including to rates of pay, hours of work and leave entitlement, without the written agreement of the relevant employee. No changes to leave entitlement should be made while receiving the subsidy. If we consider that annual leave accrual is the periodical accrual of annual leave which contributes to the employee’s annual leave entitlement, then we must continue to accrue annual leave for the hours that the employee was expected to work during the time they are receiving the subsidy. Anything less would indicate that the employer is not giving the employee their full leave entitlement.
Can an employee use their other leave entitlements during the lockdown period?
Employers and employees can agree to use any form of paid leave (e.g. annual leave) to cover their period of self-isolation. However, employees aren’t required to have used any or all their paid leave entitlements before they can receive the Wage Subsidy support paid to an Employer. Refer to Scenarios 3 and 7 in the Wage
Subsidy Guide.
need to miss at least one shift of work and;