Government ramps up response to COVID 19 crisis – employment law

The government has announced new measures that aim to slow down the spread of the COVID-19 virus and to provide much-needed support to workers and businesses affected by the crisis.

Increased restrictions

Significant new restrictions that will further reduce employment were announced while it was also confirmed that the initial review date of March 29th has now been extended until April 19th.

From midnight on the March 24th, the government specifically requires all theatres, clubs, gyms/leisure centres, hairdressers, betting shops, marts, markets, casinos, bingo halls, libraries and other similar outlets to shut.

All hotels must limit occupancy to essential non-social and non-tourist reasons.

All non-essential retail outlets are to close to members of the public, and all other retail outlets are to implement physical distancing.

For any other business, employees are required to work from home. Where this is not possible, employees must only attend their place of work where their attendance is essential.

The widening of the restrictions will, of course, lead to further job losses as it effectively leaves only employees who can work from home and essential frontline staff in the retail and healthcare sectors assured of continued employment.

Financial supports for workers and wage subsidies

Recognising the need to support workers during the crisis, the government announced substantial increases in social welfare benefits.

The COVID Unemployment Payment has risen to €350 a week.

Likewise, the COVID Illness Benefit for self-isolating employees has also increased from €305 to €350 per week and can be topped up by employers.

To avoid large scale redundancies, the government has also moved to encourage employers to keep staff on their payrolls.

Under the government’s wage subsidy scheme, the state will co-fund 70% of the cost of salaries up to a maximum of €410 per week – the equivalent of €38,000 a year in take-home pay. Additionally, the scheme will provide assistance of up to €350 per week for employee earnings between €38,000 and €76,000.

Employers will only be eligible if they have suffered a 25% decline in turnover and are unable to cover their outgoings.

Though state intervention was badly needed by the SME sector to survive this rapidly evolving crisis, whether the new measures will be enough to prevent widespread job losses remains to be seen.

Guest article by Alan Hickey, Associate Director of Advisory at Peninsula.