Following Monday’s announcement from the Minister for Employment Affairs and Social Protection that the government will refund employers who have temporarily laid off their employees but continue to pay them €203 per week for the duration of the COVID-19 situation, Revenue has agreed to implement a refund system on behalf of the Department of Employment Affairs and Social Protection.

It was previously thought that the refunds would take some time to process meaning that employers would have to rely on banks to provide working capital finance by way of overdrafts or short-term loans to cover costs while waiting on their refunds. However, the Minister has stated that Revenue’s support will expedite the refund process and likely reduce the need for employers to seek short-term finance from banks.

What this means in practice is that, should an employer who has temporarily laid off staff not be able to provide any wage payment to its employees, they are asked to keep their staff on payroll and pay them €203 per week. Once the employer’s payroll provider submits their payroll returns to Revenue, it will refund the €203 to the employer. In terms of employees who have dependents, these individuals are asked to apply online for Jobseeker’s benefit to ensure that they receive all their entitlements.

Where an employer is unable to pay their employees or the affected person is self-employed, a COVID-19 Pandemic Unemployment Payment has been introduced. This will be paid for 6 weeks at a rate of €203 per week. Applications can be downloaded online and submitted by post.