COVID-19 Wage subsidy question

Forums › Off topic › COVID-19 Wage subsidy question

trig42

5802 posts

Uber Geek

ID Verified

#270494 12-May-2020 13:45

Hi,

A close friend of mine works at a business that had to close in Level 4, and is open in a limited, non-contact way under level 3.

She is on $25 an hour.

She is getting the Wage Subsidy, and during level 4 this was nearly 90% of her wage (she only worked about 25 hours a week before lockdown).Now that they are back, she's doing a few extra hours, but her boss is under the impression that she still only has to pay the subsidy.

The hours she worked last week would have come to about $700 before tax but her payslip only shows the $585.80 being the subsidy.

It is my opinion that that is not correct - you have to be paid for the hours you've worked at your agreed hourly rate. She has not agreed to an hourly rate reduction, and it was never discussed.

I can't find anything on the employment or WINZ websites that states it explicitly.

Has anyone seen anything I can point her at so that she can go back to her employer and get it sorted (or shall I just tell her to walk out after she has done the hours (about 23 hours a week)?

I hate employers doing this sort of thing.

TIA.

BlinkyBill

1443 posts

Uber Geek
Inactive user

#2481919 12-May-2020 14:06

The employer is 100% wrong. First thing to do is look up a definition of the word ‘subsidy’, which in this case is a contribution to wages paid, and not a replacement for the wages paid, or the government paying wages. There is absolutely no doubt the full contracted rate should be paid for the hours worked.

Second point is the subsidy is meant to cover, from memory, 80% of the persons wage, with the employer paying some or all of the difference between $585 and whatever the person’s 100% wage would be.

Employment NZ is the first port of call for help here. Contact them and ask them what to do.

The employer is probably mis-informed, but a small but significant proportion will be trying it on.

tripp

3848 posts

Uber Geek

Trusted

Lifetime subscriber

#2481924 12-May-2020 14:14

Correct, if there has been "no talk" about reducing her hourly rate with her agreement then they need to pay for the hours she has worked. Does not matter if the company is getting the wage sub or not.

The wage sub is not a replacement for peoples contracted rates etc unless both parties agree. I would also suggest if they ask for her agreement then get everything in writing with agree amount for how long etc.

Also something to note, the wage sub should also be taxed at their correct tax rate (i.e. M, MSL etc). Might pay for her to check her payslip to confirm she was not paid correct and it's just tax that brings it down to 585 etc. If she is only getting the wage sub then she should be getting less than 585 due to income tax having to come out.

trig42

5802 posts

Uber Geek

ID Verified

#2482012 12-May-2020 15:13

Yep thanks.

She is getting taxed correctly. Just the extra hours worked not being paid.

She will follow up. I'll let you know how it goes. Its awful having to confront your employer about being underpaid.

tripp

3848 posts

Uber Geek

Trusted

Lifetime subscriber

#2482015 12-May-2020 15:17

trig42:

Yep thanks.

She is getting taxed correctly. Just the extra hours worked not being paid.

She will follow up. I'll let you know how it goes. Its awful having to confront your employer about being underpaid.

It's never good having to correct the hand that feeds you. But it is also up to the company to read up / get advice on how these things work and make sure they are doing what they should. If money is tight then there are other ways to work it out (i.e. time off later). But like i said any agreement should be in writing with info about time frames etc. This protects both employer and employee.

tripp

3848 posts

Uber Geek

Trusted

Lifetime subscriber

#2482018 12-May-2020 15:21

@trig42

Here is more info on it all

https://www.workandincome.govt.nz/covid-19/wage-subsidy/employee-information.html#null

Look at the wage subsidy payments area and you will see this

If you're working

Your employer should pay you in accordance with your employment agreement. Your hours of work and hourly rate can only be changed with your agreement.

For information or questions on employment law, contact Employment NZ on 0800 20 90 20 or visit their website.

tripp

3848 posts

Uber Geek

Trusted

Lifetime subscriber

#2482020 12-May-2020 15:24

Also this

https://www.employment.govt.nz/leave-and-holidays/other-types-of-leave/coronavirus-workplace/changing-an-employees-work-arrangements/

Deal with each other in good faith

Employers and employees must discuss in good faith the implications of COVID-19 on their working arrangements.

Where changes to current working arrangements are proposed by an employer, there are specific good faith requirements that must be followed. Any changes made need to be agreed to by both parties.

Employers and employees may be considering changes that involve workplaces closing temporarily or reductions in hours. These changes require additional good faith or other process arrangements, including consulting with employees and their representatives, providing time to respond to proposals and considering their comments.

In the current situation, there may be circumstances where consultation on changes can be truncated if the employer genuinely needs to make rapid adjustments to cope with their circumstances under COVID-19 alert restrictions, but truncated processes must still occur in good faith, and provide opportunity for workers to seek advice.

Guidance on workplace change