Question :
I employee workers as contractors- can I get any assistance to continue to employee them?

Question submitted 26/03/20 @ 02:09pm
Industry: HR & Talent
  • Hi, the contractors should submit their own application with WINZ for the wage subsidy https://services.workandincome.govt.nz/ess/trader_applications/new
    They should be eligible for the subsidy if the total amount they invoice each week (to you and any other people they contract to) is at least 30% lower than what they normally invoice, for at least a 4 week period. If they contract for 20 hours or more they will be entitled to $585.80 per week. If they contract for less than 20 hours they will be entitled to $350 per week.

    Hi Darren- yes I had thought of this- however if they claim the money themselves then they don’t need to work for me do they? If they were my employees then I could continue to have them do our online work and use the subsidy to help pay for it while we are not getting sales. I am giving them the info to apply for the subsidy but I won’t be able to employee them anymore myself and can’t get the work done!

    Hi Melissa, yes, you’re grappling with one of the essential differences with employees and contractors. As a contractor, they may well ‘elect’ not to continue working for you.
    However, if they want to qualify for the wage subsidy they need to take active steps to mitigate the impact of COVID-19 on their business and I’d suggest they’re not doing that if they walk away from their contracting engagement with you.
    In addition, without knowing their current terms, if they carry on providing their services to you, they have the opportunity to earn 70% of their normal contracting fee from you AND receive the wage subsidy.

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