9 Apr 2020

Coronavirus: Employers keep wage subsidy for themselves

From Morning Report, 7:23 am on 9 April 2020

Some employers are not passing on all of the pandemic wage subsidy they're receiving for workers, and are instead pocketing the money for themselves.

The $585 a week subsidy requires employers to use their best endeavours to pay people up to 80 percent of their pre-lockdown wage.

Around 170 complaints have been registered about the wage subsidy scheme and most of the complaints are to do with money not being passed on

A hospitality worker says before the lockdown, she was being paid about $450 a week.

She says her boss is now claiming the full $585 on her behalf but only passing on $350 of this, and pocketing $235 for themselves.

Stu Lumsden is the National Manager Labour Inspectorate for the Ministry of Business, Innovation and Employment. 

He speaks to Susie Ferguson.