Gerald Nash (Louth, Labour)
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202. To ask the Minister for Finance his plans to follow other EU countries in prohibiting firms availing of the temporary wage subsidy scheme from dismissals on economic grounds; if he will seek the full repayment of the compensation per each employee in the case of dismissal on economic grounds; if he will oblige employers to reach an agreement with trade unions or other worker representatives in the case of large-scale dismissals, that is, of 20-plus employees, on economic grounds; and if he will make a statement on the matter. [16871/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government’s priority in so far as the Temporary Wage Subsidy Scheme (TWSS) is concerned was and is to ensure that all employers experiencing significant negative economic disruption from COVID-19 can register for and start to receive payment quickly. The ambition of the scheme is to ensure the relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once the crisis has passed.

The TWSS can only operate in respect of an employee, whether full-time or part-time, who was on the payroll of the employer as at 29 February 2020. Thus, eligible employers can participate in the scheme in respect of any eligible employees on their payroll, including rehired staff who were temporarily laid off. Eligibility for the scheme can be satisfied by an employer once they meet the relevant criteria, which can be at any point in time during the scheme’s duration.

The amount of the subsidy for each employee is calculated based on the average net weekly pay of the employee as reported to Revenue for January and February 2020. With regard to the subsidy amount, there is no distinction made between businesses who closed due to the restrictions and businesses who continued to trade, with employees continuing to work full time with similar hours as before the Covid-19 pandemic.

The TWSS has no role in relation to the employer/employee relationship insofar as terms, conditions, entitlements and rights of the employment are concerned. Consequently, the operation and management of redundancy is a matter between the employer and employee concerned and is outside the remit of the present scheme.