Question :
I am confused about how the Wage Subsidy applies to temps. If we had a Temp on a 12 week assignment and we applied for the Wage Subsidy, but then they were subsequently stood down after six weeks, do we have to keep subsidising them to 80% of their salary for the full 12 weeks?

Question submitted 09/04/20 @ 01:07pm
Industry: People & Culture
  • Up

    Hi there – I suggest you start by checking the contractual agreement you have with your temp. What does the termination clause say about their normal notice period? If they were fully paid for the first six weeks and then stood down in line with their regular notice period terms and conditions (including payment for the notice period), then in my mind, you have met the requirements regarding the employee and no further payment would be needed. Assuming that is the case, you may now be left with excess income from the remaining weeks of the wage subsidy that you may not be entitled to keep now that the temp is no longer working in the role. If that is the case, I encourage you to contact MSD asap, to fulfil your responsibility to notify the Ministry of Social Development if anything changes that may affect your eligibility, to seek their advice about whether a repayment is needed. I hope that’s helpful. Fiona

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