The last two weeks have been very challenging with incomplete and confusing information circulating from the Government for businesses affected by the four week lockdown of New Zealand.
This has made it very difficult for all business owners to get their head around what to do, especially with their business advisers scrambling to understand the situation where everything keeps changing and moving at lightning speed.
The one thing that is abundantly clear is that businesses that were put into lockdown for four weeks on 26 March are now fighting for their survival. This must equate to 95% or more of all businesses in New Zealand. Every business put into lockdown is in the same boat. A significant number of businesses will not have the resources set aside to deal with the impact of a full month of wage and overhead costs with no sales/income even with the wage subsidy.
The COVID-19 Wage Subsidy comes from the Public Purse. As such you must remain fully aware of the conditions attached to the wage subsidy. Ensure that you cross your t‘s and dot your i‘s with regard to the conditions of the wage subsidy; as if you don’t this can be treated as fraud.
We are all currently at war for the survival of our businesses. Take care with the way you handle staff and documentation, both with regard to the process and the supporting evidence for your decisions with regard to any possible redundancies. Employment Law has not been suspended.
There is currently a lot of confusion around the businesses community relating to the four week lockdown of New Zealand and the resulting implications. In order to try to provide some clarification, which is urgently needed, we have prepared this discussion document. Because this document is a ‘discussion document’ we cannot accept any liability to any person who places reliance on the contents of this discussion document. You must seek your own independent specialist advice before making any decisions around your particular circumstances.
