Your obligations for COVID-19 Wage Subsidy March 2021

These are your obligations when you get the COVID-19 Wage Subsidy March 2021. You must also comply with employment law.

An overview of your COVID-19 Wage Subsidy March 2021 obligations

You must agree that:

  • you meet the following eligibility criteria:
    • your business has had a 40% revenue drop attributable to the rise in COVID-19 alert levels on 28 February 2021
    • your business is registered and operating in New Zealand
  • you have taken active steps to mitigate the financial impact of the rise in COVID-19 alert levels on 28 February 2021 on your business activities, including proactively engaging with your bank and calling on your internal cash reserves (where appropriate)
  • you will use the subsidy to retain and pay your employees, including casual employees:
    • you will retain the employees named in the application for the period the subsidy is paid in respect of those employees
  • for the period of the subsidy you will:
    • use best endeavours to pay at least 80% of each named employee’s ordinary wages or salary for the duration of the subsidy
    • pass on at least the full amount of the subsidy claimed, to the employee, for the subsidised period, but
  • if the employees’ ordinary wages are less than the subsidy, pay them their ordinary wages
  • you have discussed the application with the named employees, who consent to the information in the application being:
    • provided to the Ministry and
    • used by the Ministry, and shared with other agencies, to make decisions about the application, and to review and check the integrity of any subsidy granted
  • you consent to the information in the application being verified with other agencies
  • you consent that the Ministry will check whether you’re getting another COVID-19 payment for that named employee for the same period
  • you will keep records of your revenue decline and how that was caused by the rise in COVID-19 alert levels on 28 February 2021
  • you are aware you may be audited and reviewed, and if you provide false or misleading information, you may be investigated for fraud
  • you will notify MSD if circumstances change that affect your eligibility
  • you will repay any amount to which you are not entitled

Your obligations under employment law

Regular employment law applies to all employment relationships – regardless of the circumstances that we find ourselves in. This includes anything that has been agreed to in an employment agreement.

For information on your obligations under employment law, contact Employment NZ on: 0800 20 90 20 or visit their website. For example, you might have questions about:

  • employer contributions to KiwiSaver
  • holiday pay
  • annual leave.