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The Government’s Job Support Scheme to help employers retain workers who might otherwise be facing redundancy has been extended to include more employers from 27 April 2009. To check your firm’s eligibility visit the Work and Income website or call their employer line on 0800 778 008.
Under the scheme the Government provides an allowance to supplement the income of workers who have accepted reduced hours. It is paid to employees through their employer. The scheme is voluntary and must be negotiated with workers and, where applicable, their unions.
For further information on the Job Support Scheme, visit the website of Work and Income or call their employer line on 0800 778 008.
If an employee agrees with their employer to work a nine day fortnight they will need a temporary variation to their employment agreement. For more information on employment agreement variations see Information for Employers.
If an employee is covered by a collective employment agreement the union and employer need to negotiate a variation to that agreement. Click here for more information on collective bargaining.
Employees will not accumulate holiday leave or sick leave for the day that they do not work. The allowance paid will be included in an employee’s gross earnings for calculating holiday pay. Click here for more information on leave.
The allowance to employees will be taxed the same as other earnings. Get information about tax obligations for employers and employees at Inland Revenue's website.
Employers and employees will pay ACC levies on the allowance as they apply to their other earnings. For more information visit www.acc.co.nz.
If you have questions about how working a nine day fortnight will affect your employment you can check the Department of Labour’s FAQ Knowledgebase.
Employers considering the impacts of the Job Support Scheme can read more on the Information for Employers page.
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This page was last updated on:
13-Oct-2009
and is current.
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