Eoghan Murphy (Dublin Bay South, Fine Gael)
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58. To ask the Minister for Finance if he will clarify certain details regarding the temporary wage subsidy scheme (details supplied). [31896/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Temporary Wage Subsidy Scheme (TWSS), which was provided for in section 28 of the Emergency Measures in the Public Interest (COVID-19) Act 2020, expired on 31 August 2020.  The TWSS has been replaced by the Employment Wage Subsidy Scheme (EWSS), which was legislated for in the Financial Provisions (Covid-19) (No. 2) Act 2020.  Therefore, it is the EWSS that is currently available as a support to businesses operating under reduced demand because of Covid-19 restrictions.

The eligibility criteria for EWSS state that an employer must be able to demonstrate that his or her business will experience a 30% reduction in turnover or orders between 1 July and 31 December 2020, by reference to the corresponding period in 2019, as a result of business disruption caused by the Covid-19 pandemic.  Where an eligible employer makes a payment of wages, within prescribed limits, to a qualifying employee during the scheme, the employer may claim an EWSS subsidy in respect of that employee. There is no requirement for the employee’s consent to be given.  

Regarding the Deputy's question about an employer placing an employee on reduced hours and thus reducing the employee's pay for the purpose of making a profit, the legislation for the EWSS has been specifically drafted to ensure that Revenue have sufficient powers to address any abusive practices that do not have a bona fide commercial basis and specifically targets the artificial manipulation of pay levels in such circumstances.

I have been advised by Revenue that the question of an individual’s entitlements in an employment context, and the question of what wages an employer may or may not be in a position to pay such an employee in light of the impact of the Covid-19 pandemic on the employer’s business, are matters that are outside the remit of the EWSS. The scheme has no role in relation to the employer/employee relationship in so far as the terms, conditions and entitlements of the employment are concerned, subject, of course, to the employer paying the requisite amount of gross wages to an employee, as outlined above, in order to qualify for a subsidy in relation to the employee.

Finally, as the Deputy will be aware, in tandem with the recent decision by Government that the country will move to Level 5 restrictions, changes are being made to enhance the rates of subsidy available under the EWSS.