Last Updated: 14:40 27/10/2020

Lay-off’s during COVID-19 Pandemic

The Government has brought in a ‘COVID-19 Pandemic Unemployment Payment’ for any employees who are temporarily laid off. Employees who have been placed a shorter working week, can avail of the Short-Time Work Support.

You can place your employees on ‘lay off’ or ‘short time’ if it is stipulated in their contract. Otherwise, if they have no contract of employment or if it is missing a clause like this, you will need to seek their agreement before placing them on lay off.

If you are placing an employee on lay-off, you, as the Employer would need to inform your employees in writing. Following this, you will have to follow one of the process’ below. If your business decides that lay-offs are necessary, you need to consider which of the two options below suits your business best:

Employment Wage Subsidy Scheme

If your business operates the Employment Wage Subsidy Scheme and can make payments to your employees through the Scheme, please follow the process below:

  • Issue the following letter to the employee notifying them that they are being laid-off as a result of the ongoing pandemic and that you will continue to pay them through the Employment Wage Subsidy Scheme

The Employment Wage Subsidy Scheme has been amended to align with the amendment to the Pandemic Unemployment Payment. There will now be 5 payment bands for the Employment Wage Subsidy Scheme based on an employee’s earnings:

  • From 0 to €151 = €0
  • More than €151 and less than €203 = €203
  • More than €203 and less than €300 = €250
  • More than €300 and less than €400 = €300
  • More than €400 and less than €1,462 = €350

EWSS – Lay off Letter Template

Pandemic Unemployment Payment

If you are not in a position to avail of the Subsidy Scheme for your employees, you may wish to use the ‘COVID-19 Pandemic Unemployment Payment form’ below and the employee(s) can receive the payment for the duration of the crisis at the present time.

You should also issue the employee(s) with the layoff letter below, informing them of the reason why they are being placed on lay off.

PUP – Lay off Letter Template

Disclaimer:

The above templates have been prepared for you to use in conjunction with the correct process. Please consult with your dedicated HR Advisor if in any doubt.

Redundancy

Under the Redundancy Payments Act 1967, employees who are placed on a period of lay-off or short-time for four consecutive weeks, or six weeks in any thirteen-week period, may request redundancy. In response to Covid-19 and to assist businesses during these difficult times, the Government issued the ‘Emergency Measures in the Public Interest (Covid-19) Bill 2020.’ This Bill temporarily prevents employees invoking these redundancy rights when on a period of lay-off or short-time. This has recently been extended until 30th November 2020.

It is important to note that the employee’s right to claim redundancy has not been removed but deferred for the emergency period in circumstances of temporary lay-off or short-time employment.

RP50 Redundancy Form

Short-Time

A Short-Time situation exists where there is a reduction in the amount of work available, leading to a reduction in:

  • Weekly earnings to less than half the average weekly earnings or
  • The hours worked to less than half the normal weekly working hours.

To qualify for Short-Time Work Support, an employee must be:

  • temporarily working a standard reduced weekly work pattern
  • working 3 days or less per week having previously worked full-time
  • be under 66 years of age
  • be capable of work and be available for full-time work

Job Seekers Form

UP1 Form

Short-time Form

UP14 Form

Short-time Booklet

Explanatory Booklet

‘Level 5’ Restrictions 

As of midnight, on the 21st of October 2020, Ireland is under Level 5 of the Plan for Living with COVID, and currently, there are a few small exemptions in place.

Level 5 Restrictions include the following:

  • People are being asked to remain at home and work from home where possible. The only exemption to this is in the case of people providing essential services for which their presence is required. Please click here for a list of Essential Services 
  • People will be allowed to exercise within 5 km of their home. Penalties may be applied for movement outside of the 5 km, if not in line with the outlined exemptions.
  • All schools, early learning and childcare services will continue to remain open.
  • Non-contact training can continue for school aged children, outdoors in pods of 15.
  • Visits to other homes or other people’s gardens are not permitted; however, support bubbles will be allowed for defined categories to facilitate those who may be at risk of social isolation.
  • No social gatherings are permitted except in the case of Weddings or Funerals. Weddings and Funerals should not exceed 25 people.
  • It is allowable to meet with one other person from another household in an outdoor setting which is not a home or garden, for exercise.
  • Organised indoor or outdoor events are not permitted.
  • Essential retail and services will remain open. Please click here for a list of Essential Retail Services.
  • Public Transport will operate at a capacity of 25%. It will solely be to provide transport for those working in essential services.
  • Professional, elite sports and inter-county Gaelic games, horse-racing and greyhound racing can continue behind closed doors.
  • Bars, Café’s, and Restaurants can open to provide take-away and delivery only.
  • Hotels, guesthouses and B&Bs can remain open to support the provision of essential services.
  • It is recommended that those over 70 years of age remain at home as much as possible and limit engagement to a small network for short periods while remaining physically distanced. If exercising, it is recommended to stay at least 2 metres distance from others. It is recommended to shop during designated hours only while wearing a face covering and avoid the use of public transport.
  • Religious services will only be allowed to take place online.
  • Museums, galleries, and other cultural attractions will remain closed.
  • Libraries will only be available online.
  • Outdoor playgrounds play areas and parks can remain open with protective measures.
  • Visits to Long Term, Residential Care facilities are suspended except for visits required for critical or compassionate circumstances.

Government Supports

The Government of Ireland has published information regarding supports that are being made available to Small and Medium Sized businesses and to their employees as follows:

Additional information that you may find useful:

  • A €200m Strategic Banking Corporation of Ireland (SBCI) Working Capital scheme for eligible businesses impacted by COVID-19. Loans of up to €1.5m will be available at reduced rates, with up to the first €500,000 unsecured. You can apply through the SBCI website.
  • A €200m Package for Enterprise Supports including a Rescue and Restructuring Scheme available through Enterprise Ireland for vulnerable but viable firms that need to restructure or transform their business.
  • The maximum loan available from MicroFinance Ireland will be increased from €25,000 to €50,000 as an immediate measure to specifically deal with exceptional circumstances that micro-enterprises – (sole traders and firms with up to 9 employees) – are facing. Applications can be made through the MFI website or  your local LEO.
  • The Credit Guarantee Scheme will be available to COVID-19 impacted firms through the Pillar Banks. Loans of up to €1m will be available at terms of up to 7 years.
  • Firms that need to reduce hours or days worked can avail of the Department of Employment Affairs and Social Protection Short Term Work Support by contacting their local Intreo Office.

Q&A on coronaviruses (COVID-19)

The following information can help business owners and Employers understand their obligations concerning the evolving COVID-19 situation which is affecting businesses globally. It is also having an impact on our clients and their employees.

Please be advised to check back for regular updates as the Government of Ireland makes more information available.

A ‘lay-off’ situation can occur when there is an unexpected downturn in the business that is out of the Company’s control. If you have no work for the employee, and/or the Business is under extreme financial pressure, you can place an employee on lay-off.

Lay-off should be the Company’s last resort. It is viewed as being a temporary situation. Usually, after four weeks of lay-off, employees are entitled to seek redundancy. The employee then has five days to either accept the redundancy or reject it with a statement saying they expect to be able to provide thirteen weeks of work beginning no later than four weeks from that date. The right to claim redundancy after lay-off due to Covid-19 has been suspended by the government until at least November 30th, 2020.

A lay-off situation occurs to preserve business continuity and save people’s job. If you are considering placing an employee on lay-off, you need to ensure you have a business justification for doing so. If your decision was ever challenged in the WRC, you will need to show your reasoning. If you are not placing all your employees on lay-off, you must ensure that you have a fair selection process to decide who is put on lay-off. This can be a first-in/last-out system, or the use of a selection matrix.

Yes, it is permissible to lay-off some but not all employees. Employees selected to go on lay-off must be chosen fairly.

Employers can use a last-in, first-out system, they can select employees based on department and function, or they may create a selection matrix. The criteria measured should be reasonable and applied in a fair manner.

Under Employment Equality Acts, the selection must not discriminate against employees on basis of  any of the following 9 grounds:

  • Gender
  • Civil status
  • Family status
  • Sexual orientation
  • Religion
  • Age (over the age of 16)
  • Disability
  • Race
  • Membership of the Traveller community.

In this case, you can still put the employees on lay-off/short-time if they agree to do so or if there has been a precedent already set within the Company.  If the employee rejects this on the basis that it is not in their Contract of Employment, the employee may instigate the redundancy process.

The Pandemic Unemployment Payment is payable at 4 rates based on an employee’s earnings. The rates are as follows:

  1. If an employee is earning €400 or more per week, they will be entitled to €350 per week.
  2. If an employee is earning between €300 and €399.99 per week, they will be entitled to €300 per week.
  3. If an employee is earning between €200 and €299.99 per week, they will be entitled to €250 per week.
  4. If an employee is earning less than €200 per week, they will be entitled to €203 per week as is in line with the primary rate of Jobseeker’s Benefit.

They will need to apply for the COVID-19 payment through www.mywelfare.ie

Yes, a self-employed person can apply for the Pandemic Unemployment Payment. They can download the form online and return by post. They will need to apply for the COVID-19 payment through www.mywelfare.ie

Yes, employees with a Stamp 2 and Stamp 4 can apply for the Pandemic Unemployment Payment for the duration of the crisis.

The government has instructed people to work from home unless It is absolutely necessary to travel to work. Employers should make every effort in accommodating employees working from home. However, if an Employer cannot facilitate this and the organisation provides an essential service or is an essential retailer, you should ensure all necessary health and safety precautions and protocols including social distancing and handwashing are in place.

If an employee has been in contact with somebody who has been diagnosed with COVID-19 they should restrict their movements immediately. They should not attend the workplace. If they are not exhibiting symptoms of COVID-19, and they can work from home, this can be permitted. If they have been present in the workplace, the Company should review the contact tracing log to clarify what other employees will need to be made aware of the possibility of them also isolating.

If they test positive for COVID-19, they should isolate, and the Company should follow the normal sick pay policy as with any other sickness. The employee will also be entitled to claim the Enhanced Illness Benefit for the time during which they are required to isolate.

If an employee is not required to self-isolate but, as an Employer you insist they self-isolate then the employee should be paid for this time out of work.

During this period and depending on the role of the employee, they may be able to work from home. You may wish to consider the following if you are asking the employee to work from home:

  1. Do they have the required resources to do so?
  2. Does my Insurance Policy cover employees working from home?
  3. How will I monitor my employees working from home?
  4. How long will I be able to maintain this arrangement?

If you have concerns, you should request the employee to contact their doctor initially. If their Doctor gives their professional opinion that the employee is fit to work, then the employee can remain at work. If the Company chooses to go against the doctor’s opinion, and requests the employee remain at home, the Company will need to pay the employee during this time as this would be akin to a suspension.

It is important to understand if the employee has recently been travelling in previous 14 days and/or if they have had contact with an infected person, if they are showing symptoms of the virus, they should immediately be sent home and instructed to contact their doctor.

Employers have a legal obligation to ensure the safety, health and welfare at work of their employees under the Safety, Health and Welfare Act (the 2005 Act). Employers must also ensure to comply with the Return to Work Safety Protocol.

Some of the measures you could implement, in consultation with your health and safety provider, are as follows:

  • Carry out a risk assessment.
  • Provide hand sanitisers, sanitation materials and masks/visors.
  • Ensure employees practice social distancing wherever possible.
  • Remind employees to wash hands regularly and disinfect surfaces they have used.
  • Facilitate remote working if possible, this is in line with government guidelines stating that employees who can work from home should be allowed to do so. If this is not possible, the Company should be able to justify why remote working cannot be facilitated.
  • Ensure the Company have a COVID-19 Response Plan in place which clearly states the procedures where there is a suspect or confirmed case in the workplace.

Ensure employees conduct contact tracing to help control the spread of the virus.

Elect a COVID-19 lead representative in line with the Return to Work Safety Protocol to act as a liaison with employees on COVID-19 related issues.

Implement temperature monitoring within the workplace.

Reducing non-essential business travel or conducting meetings via video link wherever possible.

If an employee has been in contact with somebody who has been diagnosed with COVID-19 they should restrict their movements immediately. They should not attend the workplace. If they are not exhibiting symptoms of COVID-19, and they can work from home, this can be permitted. If they have been present in the workplace, the Company should review the contact tracing log to clarify what other employees will need to be made aware of the possibility of them also isolating.

If they test positive for COVID-19, they should isolate, and the Company should follow the normal sick pay policy as with any other sickness. The employee will also be entitled to claim the Enhanced Illness Benefit for the time during which they are required to isolate.

If an employee is returning from abroad, they are expected to isolate for a period of 14 days if they are returning from a country that is not on the ‘Green List’.

The ideal way to implement this isolation is to contact the employee prior to their annual leave and provide them with the options for how they would like to spend the isolation period. These options could include;

  • Working from home, where possible.
  • Booking more of their annual leave to cover the time.
  • Unpaid Leave.
  • Parental Leave, if applicable.

If an employee presents a medical certificate for any reason, including contraction of the virus or self-isolation, you should then follow your sick pay policy as normal. If an employee contracts COVID-19, or is medically instructed to self-isolate, they may be entitled to receive up to €350 per week from the Department of Social Protection in the form of Enhanced Illness Benefit. This payment is for up to 2 weeks for self-isolation and for a maximum of 10 weeks when a person tests positive for COVID-19.

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