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The Emergency Measures in the Public Interest (COVID-19) Act 2020-Important Employment Law Changes

The Emergency Measures in the Public Interest (COVID-19) Act 2020 came into effect this week. The act contains some remarkable provisions in the public interest to help fight the effects of the coronavirus.

Let’s take a look at at some key aspects of the Emergency Measures in the Public Interest (COVID-19) Act 2020 as the act impacts on employment law in Ireland.

The Temporary Wages Subsidy Scheme

Part 7 of the act provides for this scheme which has been the subject of two sets of guidelines from the Revenue Commissioners. Here is the most recent guidelines on employer eligibility to the wages subsidy scheme.

Key points regarding the guidelines are

  • The employer must self declare that he has been seriously impacted and is a statement that as a result of the coronavirus he will be unable to pay normal wages, wants to retain employees, and will suffer a decline of at least 25% of turnover during the COVID-19 pandemic
  • An employer who has significant cash reserves will be expected to pay a significant proportion of the employee’s wages, even if he has suffered a decline in business
  • The 25% turnover decrease calculation can be carried out on any basis that is reasonable
  • There is some supporting proofs required for Revenue
  • The names and addresses of employers availing of the subsidy will be published
  • There are 2 phases: phase 1 from 15th March 2020 to 20th April 2020 and phase 2 from April 20th, 2020
  • Employees must have been on the payroll on 29th February 2020

There has been criticism of this scheme from various quarters and, no doubt, it is not perfect. But given the circumstances and the need for speed it is inevitable that some infirmities or anomalies would arise. Nonetheless, with goodwill on all sides it is probably worth a fair chance to see the wages subsidy scheme in action.

Redundancy payments changes

Part 8 of the act makes a change to the Redundancy Payments Act 1967 and provides clarity concerning layoffs and short time working during the COVID-19 crisis.

This emergency legislation suspends the employee’s right to a redundancy payment pursuant to section 12 of the Redundancy Payments Act 1967.

Section 12 provides

F31[12.—(1) An employee shall not be entitled to redundancy payment by reason of having been laid off or kept on short-time unless—

(a) he has been laid off or kept on short-time for four or more consecutive weeks or, within a period of thirteen weeks, for a series of six or more weeks of which not more than three were consecutive, and

(b) after the expiry of the relevant period of lay-off or short-time mentioned in paragraph (a) and not later than four weeks after the cessation of the lay-off or short-time, he gives to his employer notice (in this Part referred to as a notice of intention to claim) in writing of his intention to claim redundancy payment in respect of lay-off or short-time.

(2) Where, after the expiry of the relevant period of lay-off or short-time mentioned in subsection (1) (a) and not later than four weeks after the cessation of the lay-off or short time, an employee to whom that subsection applies, in lieu of giving to his employer a notice of intention to claim, terminates his contract of employment either by giving him the notice thereby required or, if none is so required, by giving him not less than one week’s notice in writing of intention to terminate the contract, the notice so given shall, for the purposes of this Part and of Schedule 2, be deemed to be a notice of intention to claim given in writing to the employer by the employee on the date on which the notice is actually given.]

This new legislation inserts a new section 12A which suspends the employee’s right to claim redundancy during the emergency period which is defined as the period from 13th March 2020 to 31st May 2020. This period oculd be extended, however, depending on how the coronavirus is being dealt with.

The critical impact of this provision is to give employers some comfort regarding the fear they had that they would face a large number of claims for redundancy arising from forced layoffs or short time working.

Here is the bill as it was passed by the Dail on Friday 27th March 2020: Emergency Measures in the Public Interest (Covid-19) Bill 2020.

This act also makes emergency provisions regarding the operation of the Residential Tenancies act 2004, time limits relating to planning and development, health and social care professions, the Mental Health Act 2001, the Defence Act 1954, the Civil Registration Act 2004, the Redundancy Payments Act 1967.