New financial supports announced for struggling business owners and employees as a result of Covid-19

The Government has announced new measures this week to help businesses and employees who are struggling financially during the Covid-19 emergency. The new measures provide a comprehensive range of supports for businesses who are in a position to retain employees but also for employees who have been laid off as a result of the crisis. The measures introduced (as of the 26th of March 2020) include a Temporary Wage Subsidy Scheme for employers and a social welfare payment known as the ‘Covid-19 Pandemic Unemployment Payment’ for employees who have been laid off.

  1. Temporary Wage Subsidy Scheme:

The Temporary Wage Subsidy Scheme aims to ensure that employers maintain links with their employees which will make it easier for businesses to return to a normal working environment after the crisis. Employers are encouraged to avail of the scheme and retain employees on their books during the crisis.

The scheme will operate from Thursday 26th March 2020 and Revenue will refund employers up to €410 for qualifying employees from this date. Refunds to employers are expected within 2 working days after the payroll submission.

From April, the subsidy will be adjusted to provide a subsidy of 70% of an employee’s weekly wage up to a maximum of €410 for employees earning under €38,000. For employees earning between €38,000 and €76,000 the maximum subsidy will be €350. The scheme will not apply in respect of employees earning over €76,000.

To qualify for the scheme employers must experience significant negative economic disruption to their business due to Covid-19. In particular, employers must demonstrate to Revenue that their business has suffered a minimum of a 25% decline in turnover and that they are unable to pay normal wages and outgoings.

The scheme will automatically replace the Covid-19 Refund Scheme which many employers have already signed up to.

Employers can register for the scheme through ‘MyEnquiries’ on the ROS website.

  1. Covid-19 Pandemic Unemployment Payment:

The Covid-19 Pandemic Unemployment payment is a social welfare payment available to employees who have been laid off work as their employer was unable to retain them due to the Covid-19 crisis.

This new social welfare payment of €350 is available to all employees, self-employed, students and part-time workers aged between 18 and 66, who have lost their jobs or stopped trading as a result of the pandemic.

The original rate of payment was €203 however all recipients will automatically receive the increased rate of €350. The increased rate will also be backdated to the date of the employee’s application.

The easiest way for employees to apply is online at or by sending an application form by post.

These two new support measures provide much needed assistance to struggling businesses and employees during these difficult times.

We at J.W. O’Donovan are monitoring the situation very closely and are available to answer any queries that any businesses owners or employees may have at this time.  We strongly advise that a constant review of the Revenue guidelines be undertaken as the applicable rules are frequently changing. If you would like more information on any of the above please contact

Date of Publication: 26th March 2020

Employment Law Update: Covid-19 Pandemic Unemployment Payment Scheme and Illness Benefit

As employers and employees face into changed circumstances as a result of Covid-19,  the government has introduced new social welfare measures to take effect immediately.

The situation remains fluid, with the guidelines being updated regularly. If you need specific advice around your obligations as an employer, you can get in touch at

The following is an overview of the current Covid-19 Pandemic Unemployment Payment Scheme and the Illness Benefit.

1 Covid-19 Pandemic Unemployment Payment Scheme

The Government has introduced the Covid-19 Pandemic Unemployment Payment Scheme, which is designed to cover the first six weeks of being out of work. Job-Seekers Allowance is not ordinarily payable for that period.

The €203 payment a week under this new scheme arises where the employed or self-employed become unemployed or have their hours reduced because of the impact of Covid-19. It is payable for six weeks during which time employees must seek the normal Job-Seekers Allowance. Currently, employers will not get Job-Seekers Allowance after the six week period. This will likely be reviewed by Government as matters progress over the coming period.

The scheme applies to those between 18 and 66 years of age and applies provided they have been in work. The claim is made by completion of a short form which should be submitted electronically and not be personal visit to the relevant Intreo office.

As part of the evolving Government response, employers are being requested to pay the €203 a week and seek reimbursement from the Government. On Wednesday the 18th March 2020, the Government announced the reimbursement scheme would be operated by Revenue on behalf of the Department of Employment Affairs and Social Protection. The up-to-date Revenue advisory to employers is payments made by employers under this scheme are not subject to tax, USC or PRSI. The amount paid by employers to employees and notified to Revenue will be reimbursed generally on a “next day” basis direct to the employers bank account.

Any refunds of income tax or USC that an employee may be entitled to receive due to being laid off will also be administered by the employer and again the employer will be reimbursed by Revenue through the scheme.

Revenue has issued guidance notes for employers and their ROS agents on its website.


The Government also introduced a recent change to entitlement to Illness Benefit increasing it to €305 a week for Covid-19- affected people only (normal non-Covid-19 Illness Benefit continues at €203 a week). To obtain Covid-19 Illness Benefit, the employee must satisfy the criteria of being medically certified to self-isolate or having received a medically confirmed diagnosis of Covid-19. If it is a medically approved self-isolation, the employee is paid enhanced Illness Benefit for two weeks and if a diagnosis of Covid-19 follows, then the payment continues for the duration of the illness.

An employee who unilaterally decides not to come to work, where work is available from the employer, does not qualify for the enhanced Illness Benefit of €305.

Article by David Pearson, Partner on J.W O’Donovan Solicitors’ Employment Law team.

Covid-19 JWOD Update

To all our clients and colleagues.

We are constantly monitoring the evolving situation with Covid 19 and are following all advice from the authorities in the best interests of our staff, clients and colleagues. Our office remains open and we are continuing to provide a full service to our clients, while taking all appropriate measures to play our part in containing the spread of the virus.

Our IT systems allow all our solicitors to work remotely so they will do so where feasible and will continue to be available to clients.

We have adopted a policy that face to face client meetings will only take place where absolutely necessary and with all appropriate safeguards.

We are committed to supporting all our clients during this difficult period so you should feel free to contact us as usual. We shall provide further updates as and when required.

What are employer duties around Covid-19?

The outbreak of the coronavirus Covid-19 raises challenging points of Health and Safety Law, Employment Law, Data Protection Law, Immigration and Employment Equality issues. The outbreak is prompting employers and HR Departments to assess the risks, review existing Contracts of Employment and Company Policies, devise a plan and clearly communicate with employees on a continuing basis in light of the evolving spread of Covid-19.

What should employers do? 

Employers should carry out a Risk Assessment of the workplace under Health and Safety legislation. Measures to protect against the spread of Covid-19 entering the workplace and to mitigate or minimise the effects of an outbreak at the workplace should also be adopted. Measures could be minimal such as ensuring sufficient hand sanitisers, hand wipes and increased cleaning of surfaces. Other options include permitting or requiring employees to work from home or remain out of work.

Relevant company policies should be reviewed, including policies such as an existing infectious disease outbreak response plan, sick pay policy, holiday policies, force majeure policies, carers policies and lay-off policies.

Communicate with your employees

Once the initial risk assessment has been carried out and all policies reviewed, strong HR communication with staff is critical to ensuring a full understanding by employees of what is expected of them, particularly if they become symptomatic or in contact with somebody who is symptomatic. Employees should also be informed that if a significant portion of the workforce become infected or are required to remain in “self-isolation” the policies may need to be adapted to changing circumstances.

Obligations around pay and sick leave

One of the main questions for an employer will be whether to pay or not pay an employee who is required to remain out of work but not diagnosed with Covid-19.  If those employees can continue to work from home then they should be paid their normal renumeration. If they’re not able to work from home, the employer needs to apply a consistent policy across the workforce and keep that policy under review.

Where an employee has not contracted Covid-19 but is required to remain out of work and unable to work because of public policy considerations or directions, any sick pay policy will not apply to that employee until such time as the employee has contracted Covid-19.

Additionally, an employer may need to relax normal rules around providing medical certification of sickness in circumstances where medical professionals may not be in a position to provide certification and/or employees may not be in a position to obtain medical certificates in a timely fashion.

In parallel with the application of any sick pay policy, the employer needs to ensure that it has a robust absence policy for employees who may seek to unfairly take advantage of a developing situation. Consideration will need to be given to employees who refuse to come to work,  including those based on reasonable grounds. Flexibility around unpaid leave, annual leave and/or carers leave might need to be considered by the employer.

In extreme cases, an employer may be required to temporarily shut a significant part or all of the workplace.  Employers may be able to temporarily “layoff” staff under existing contracts of employment and the employee handbook.  An infectious disease outbreak response plan would also need to take consideration of employees who have travelled abroad on behalf of the employer, in particular, employees returning from areas that are subject to an outbreak of Covid-19.

Applying an infectious disease outbreak response plan

In implementing any infectious disease outbreak response plan, an employer must have particular regard for individual employees who have contracted Covid-19 or who may be required to remain out of work. Information in relation to individual employees will be personal data under GDPR and will require to be treated with the greatest sensitivity by the employer.

Another challenge for employers applying an infectious disease outbreak response plan is to ensure that its application is not based on race, nationality or ethnicity.  The Employment Equality Acts prohibits discrimination against employees on a number of grounds, including race, with severe consequences for employers who are found to have discriminated against employees.

In summary, an employer’s infectious disease outbreak response plan should be reviewed frequently in light of any developing situation within the workplace and generally and taking into account of advice from appropriate authorities such as the government, HSE and World Health Organisation.

Article by David Pearson, Partner on J.W O’Donovan Solicitors’ Employment Law team. If you would like more information on this topic, contact David at  or 021 7300200.