Under lockdown level four, many businesses have had to lose. Closures have affected the hospitality sector hardest. For people employed in this sector, it is important to understand your rights around getting paid.
Should I still be getting paid during lockdown?
Yes, your employer has to continue honouring your employment agreement, even if level four means you cannot work. There is a caveat here as employment issues like this are up for interpretation and are not necessarily hard-and-fast rules. However, a decision made last year by the Employment Relations Authority confirmed that workplace closures as a result of Covid-19 do not alone allow an employer to withhold wages. This is because you are ready and able to work, but circumstances outside your control (the lockdown) mean you cannot.
If my employer has to shut during level four, do I have to take annual leave?
No. Your employer can only require you to use annual leave entitlements with 14 days’ notice.
What about sick leave?
Employers cannot make employees take sick leave because of the lockdown.
How do I access the wage subsidy?
Your employer should access the subsidy on your behalf and pass it on to you if their revenue has dropped at least 40% because of the alert level change.
How much am I entitled to be paid from the wage subsidy?
The wage subsidy is $600 a week for each full-time employee (20 hours a week or more) and $359 a week for each part-time employee (less than 20 hours a week).
In general, you should be paid as normal according to your employment agreement.
If that’s not possible (ie your employer truly can’t), they must try their best to pay you at least 80% of your usual wages. Failing that, they must at very least pay you the full subsidy rate.
I work different hours each week – am I entitled to be paid the subsidy?
Yep, it just gets a little more confusing. You’re entitled to your average hours of pay.
If you work variable hours, employers should use some kind of average. It should not be based on the minimum guaranteed hours in your contract if you usually work more than those hours.
I’m a casual employee – can I get the subsidy?
Casual workers aren’t entitled to ongoing work, so there is no guarantee that you will continue to be employed. But your employer can still apply for the wage subsidy on your behalf and pay you accordingly. For casual employees, the same calculation above for average wages applies.
Can my boss use what’s left over from my wage subsidy for other expenses?
No. Any difference should be used to top up the wages of other affected staff only – the wage subsidy is designed to keep employers connected to their employees.
