COVID-19 Leave Support Scheme - A guide for New Zealand employers and businesses - Employsure
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COVID-19 Leave
Support Scheme.
A guide for New Zealand employers and businesses.
employsure.co.nz
Contents
Page 2 General
Page 3 Eligibility
Page 4 Communication with employees
Page 5 Payment and superannuation
The information contained in this document is strictly confidential and may not be reproduced, distributed or published by any recipient for
any purpose without the prior written consent of Employsure Limited. The information is for background purposes only, does not purport to
be full or complete and does not constitute advice. No representation, warranty or undertaking, express or implied, is given as to the accuracy
or completeness of the information or opinions contained in this document and no liability is accepted for the accuracy or completeness of any
such information or opinions. To obtain advice on your specific situation, seek advice from an employment relations expert.
Version 5 - 10 February 2021 Page 1
General
What is it?
Since March 2020 there has been a payment for some businesses to pass on to their workers who
are unable to attend work due to COVID-19 (“Leave Support Scheme”). The intention is to provide
income support to workers who need to stay home in order to reduce the spread of COVID-19.
From 6 April 2020 to 1 May 2020 it was only available to essential businesses. However, it was
expanded from 1 May 2020 to all eligible businesses (apart from state sector organisations) and
from 21 August 2020 the eligibility criteria has been updated to remove any requirement for a
business to meet a revenue loss test to access it.
From midday 28 September 2020 the scheme has expanded eligibility criteria and the payment
length is two weeks (as opposed to the previous four weeks). From 9 February 2021, the eligibility
criteria was amended due to the introduction of the COVID-19 Short-Term Absence Payment.
As an employer, how do I apply?
If your employee is eligible you can apply to Work and Income online.
Do I have to apply for all my employees?
No, you should only apply for eligible employees after consulting with them.
How and when will the Leave Support Scheme payment be made?
If successful, you will receive a flat rate lump sum per employee based on:
• $585.80 for employees who work 20 hours or more per week
• $350.00 for employees who work less than 20 hours per week
The Leave Support Scheme was initially paid as a lump sum for four weeks per employee. From
midday, 28 September 2020 it is paid as a two week lump sum payment. Employers can reapply
every two weeks for the same employee if they continue to meet the eligibility criteria.
Is this the same as the Wage Subsidy?
No, there was a separate wage subsidy scheme (the Wage Subsidy) set up to provide support to all
New Zealand employers, contractors, sole-traders, self-employment people, registered charities and
incorporated societies affected by COVID-19. Applications for the Wage Subsidy have now closed.
Page 2
Eligibility
Do I qualify?
Most businesses will qualify to receive the Leave Support Scheme, provided they meet the below
eligibility criteria:
• The business must be registered and operating in New Zealand;
• The business’ employees must be legally working in New Zealand (including employees who
have a New Zealand work visa, have a condition on their New Zealand temporary work visa that
allows them to work in NZ, those who are international students whose visa allows them to work
in New Zealand); and
• The business retains the employees named in their application for the period of the Leave
Support Scheme
Government and crown entities, schools and tertiary education institutions are not able to receive
the Leave Support Scheme. Before applying, you need to:
• Discuss how you can best support your employee (for example discussing if they can use sick leave);
• Get your employee’s consent for the application; and
• Agree that they are eligible (see below).
Who are eligible employees?
From 9 February 2021, to apply for the Leave Support Scheme your employee must:
• Be sick with COVID-19 and must self-isolate until a doctor tells them they can leave isolation;
• Be identified as someone who has been in close contact with someone who has COVID-19
and have been told to self-isolate for a period by a health official through the National Contact
Tracing process;
• Be the parent or caregiver of a dependent who has been told to self-isolate for a period by a
doctor or health official through the National Contact Tracing process and the dependent needs
support to do so safely;
• Be considered higher risk if they contract COVID-19 and a doctor has told them to self-isolate
while there’s active community transmission; or
• Have household members who are considered higher risk if they contract COVID-19 and a
doctor has told them to self-isolate, to reduce the risk of transmitting the virus to vulnerable
household members.
Page 3
Communication with employees
What are the Ministry of Health’s guidelines?
The Ministry of Health’s guidelines can be found here and the Ministry of Health’s case definition
and testing guidance can be found here.
Do I have to tell my employee that we are participating in the Leave Support Scheme?
Yes, you must discuss the application and how you can support your employee before applying.
Do my employees need to sign anything? And what if they don’t agree?
Yes, they will need to consent to their information being shared with the Ministry of Social
Development and other departments. If they do not consent, then you will not be able to make
the application in respect of them.
What proof do I need?
Work and Income are not requiring proof of eligibiity currently, so you will not need it for the
application. If you are applying for the Leave Support Scheme, you will need to sign a declaration
outlining that you have discussed the application with the employee. The employee should inform
you why they think they meet the criteria. As an employer you can ask for a medical certificate if the
employee is sick or injured, or if someone that depends on them for care is sick or injured. Payment
for obtaining the medical certificate will depend on the circumstances and any policies.
Page 4Payment and superannuation
What do I pay my employees if I have received the Leave Support Scheme payment?
Workers should still receive their normal pay. If this is not possible, a business must try their hardest
to pay at least 80% of their usual wages, and the employee must at least receive the payment rate.
Discuss with your employee how they will be paid during their absence and record any agreements
in writing.
Do I need to deduct tax and KiwiSaver on the Leave Support Scheme payment?
The Leave Support Scheme payment is paid like normal wages, so normal deductions should still
occur (such as PAYE, KiwiSaver etc).
What if my employee earns less than the payment normally?
If the employee’s normal wage is less than the Leave Support Scheme payment, then pay them
their normal wage. Seek clarification from Work and Income regarding how to use the remainder, as
normally this should be used for other affected employees.
How often do I make the payment?
Pay your employee during their normal pay cycle or the frequency that you agreed with them.
Does my employee need to use their leave entitlements first?
You should discuss whether your employee wants to use any existing leave entitlements, but
they do not have to use up their leave entitlements before you apply for the Leave Support Scheme.
Page 5Employsure one of the
largest providers of From contracts right through to
safety… you suddenly have that
employment relations and safety net, all the information
you need in one place to make
workplace health and safety sure that you’ve got it right.
services in New Zealand. Lesley Jacobs | Country Charm Furniture
Why Employsure?
At Employsure, we believe all New Zealand
employers, no matter the size, deserve access to
comprehensive, quality, honest advice and support
that is scalable to the needs of their business.
Unlike big corporations, small businesses don’t
Employment relations changes can be complex and
difficult to manage, especially for overstretched
small business owners. Employsure was If I could do one thing different,
established in response to these challenges. It is I definitely would have employed
our aim to ensure New Zealand business owners the services of Employsure a lot
have access to cost effective, professional advice earlier. They’ve taken a lot off
my plate.
in respect to a variety of employment relations and
work health and safety issues Renata Watene | Occhiali Optometrist
What we offer
Employsure provides customised documentation,
unlimited advice, policy procedure review and
access to legal representation.
Being an Employsure client means no surprises
– we keep our clients updated about workplace
relations changes and wage updates. Our advice
team is available 24 hours a day to assist employers
through difficult situations. Our employees are important
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