Parents returning from maternity or adoptive leave will be included in coronavirus wage subsidy scheme

PARENTS returning to work from maternity or adoptive leave will be included in a government scheme to subsidise their wages during the Covid-19 crisis.

Minister for Finance and Public Expenditure and Reform, Paschal Donohoe, said the scheme is set to be changed to address an “anomaly” that excluded them, following a cabinet meeting today.

Those who were not on the payroll on February 29 or were being paid during January and February this year because they were on unpaid leave were not eligible.

The amendment will be legislated for later in the year but the change should apply from June 12.

Employers can apply for backdated payments from March 26 to subsidise their workers’ pay.

However, if a worker has been receiving the Covid-19 pandemic unemployment payment in the meantime they will not be entitled to backdated payments.

Under the scheme, employers’ can apply to have up to 85pc of their workers’ wages subsidised by the state.

“The change being made will allow for consistent treatment with other employees who were on the payroll on February 29,” said the Department of Finance in a statement.

It noted that it is only because of the personal circumstances relating to maternity and adoptive leave that these employees were not on the payroll in the first instance.

‘I am satisfied that this change addresses the anomaly and ensures appropriate operation of the temporary wage subsidy scheme recognition of the unique circumstances applying to those returning to work after a period of maternity or adoptive leave,” said Mr Donohoe.

Chambers Ireland welcomed the reform but said certainty on the duration of the wage subsidy scheme – which ends on June 9 – is needed urgently.

Taoiseach Leo Varadkar has indicated that the next government will make a decision on its extension.

“Businesses still lacks clarity on what will, or will not, be in place following the June deadline,” said chief executive, Ian Talbot.

“Without this certainty, businesses cannot plan for their reopening until they know what the government will do to support them.”

Irish Congress of Trade Unions general secretary, Patricia King, said the changes to the scheme will end weeks of uncertainty for new mothers.

“These women are bona fide employees often with a long employment history with the employer registered with Revenue for the temporary wage subsidy scheme,” she said.

“Excluding them from coverage was unacceptable to Ictu and in direct conflict with the spirit of the temporary wage subsidy scheme and the provisions in employment equality legislation.”