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Business

Ministers urge employers to reconsider staff redundancies and look at State supports

The government announced Covid-19 income support measures last week.

GOVERNMENT MINISTERS HAVE sought to remind employers affected by Covid-19 that support is available to assist them now and in the future.

Employers who have been hit by the Covid-19 crisis, or who expect to be hit in the future, are encouraged to consider the options announced by the government last week. 

These measures include:

  • Temporary wage subsidy of 70% of take home pay up to a maximum weekly tax-free amount of €410 per week.
  • Enhanced Covid-19 unemployment payment of €350 per week for those who have lost their jobs as a result of the coronavirus, an increase from €203. This also applies to the self-employed. 
  • Covid-19 illness payment has been increased to €350 per week. 

Minister for Finance Paschal Donohoe said all employers whose businesses have been, or have the potential to be, affected by the crisis should examine what is on offer and reconsider making staff redundant at this time.

“By securing as many links between the employer and the employee as we can, Ireland will be ready to spring back when the time comes, getting our people back to work and the economy back up and running again,” Donohoe said. 

The public health crisis is our very first priority. Securing our economic future and the livelihoods of our people comes next. The measures in place aim to shelter as many businesses from this storm as possible, until we get to the brighter days ahead.

Minister for Business Heather Humphreys said these measures will “ensure that when we get through the worst of the pandemic, businesses will be best placed to return to normality and kick-start the economy once again”.

“It’s important to bear in mind that if you have recently laid off workers, you can still avail of the Scheme by re-employing them, which will allow you to plan ahead with more surety,” she said. 

“I would also like to reiterate that employers with cash in reserve, who have been hit by a significant decline in business, will still qualify for the scheme.”

Employers must self-declare to Revenue that Covid-19 has had a significant negative impact on their business, with a minimum of 25% decline in turnover and an ability to pay normal wages and other outgoings.  

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