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Reply To: Payroll – tricky question

Hi Sacha,

I’m reading your question a little differently, so apologies if I’ve misinterpreted it. You need to continue to treat them as employees until their final day (2 April 2020) at which point their redundancy payments, if any, would be paid in their final pay).
While conceivably, you could have applied for a subsidy for them covering that period, it doesn’t appear that the subsidy is in fact intended for this situation, as the Work & Income guidance talks about the subsidy being “designed to keep your employees connected to you”. If an employer is making them redundant, the steer I’ve been given is that we don’t believe the subsidy would apply, so I believe they would get their full normal wages for those two weeks.
The guidance can be found here: https://www.workandincome.govt.nz/products/a-z-benefits/covid-19-support.html#null
Hope that helps!