Job Support Scheme
The Job Support Scheme is an allowance to supplement the income of employees who have accepted reduced hours to retain their jobs.
What it does
The Job Support Scheme is designed to help employees keep their jobs in this challenging economic climate.
It provides an allowance to supplement the income of employees who have agreed to reduced hours at work. The allowance is available for up to six months.
Employers need to negotiate an agreement with their employees, and unions where appropriate, which reduces their hours by up to 10 hours per fortnight. This encourages businesses to keep employees on reduced hours rather than make them redundant. It also provides job security to employees while they take part in the scheme.
Who can get it
The Job Support Scheme is available for employers in New Zealand who have 50 or more staff.
To be eligible for the Job Support Scheme an employer must:
- have negotiated an agreement for a maximum period of six months with employees (and unions where appropriate) that temporarily varies the existing employment agreement(s) of employees participating in the Job Support Scheme
- reduce the hours of participating employees by up to 10 hours a fortnight but not so they work less than 30 hours a week
- not make any participating employee redundant
- agree to pay the allowances they get (less tax and levies) to participating employees
- confirm that the shift to reduced hours is only expected to be a temporary measure
- confirm that participating employees are New Zealand citizens, permanent residents or have valid work permits.
For each job saved from redundancy we can potentially pay the allowance for up to 10 employees. This means that if an employer indicates five employees may be made redundant, up to 50 employees may be able to get the Job Support Scheme allowance.
Only employees who were working 37.5 hours or more per week before agreeing to reduced hours can get the allowance.
Which businesses are eligible?
Employers with 50 or more staff in New Zealand may be eligible, with the exception of:
- central and local government
- incorporated and unincorporated societies and associations
- charitable trusts
- all education institutions
- district health boards
- Local Authority Trading Enterprises and State Owned Enterprises, except in individual circumstances where exclusion would lead to an unfair commercial situation (for example if a direct competitor was using the Job Support Scheme).
How much is it
The Job Support Scheme will provide employers with an allowance equal to the adult minimum wage ($12.50 per hour from 1 April 2009, or $12.75 per hour from 1 April 2010) for each participating employee, for up to five hours a fortnight.
The employer must pay the allowance in full, less any tax and levies payable, to the employees who agree to participate in the scheme.
Employers need to invoice Work and Income every four weeks for the total amount of allowance paid to their participating employees for the previous two fortnights plus GST. They also need to confirm that they have continued to meet the terms and conditions of the Job Support Scheme.
Training and volunteer options for employees
Employees taking part in Job Support Scheme may like to use their extra day off to develop their skills through training or help their community by doing voluntary work.
Training websites
Information about a range of programmes for people wanting to gain new skills and improve their chances of getting a job. You can search for courses near you and check whether you’re eligible.
Voluntary work websites
Voluntary work can give people the opportunity to develop new skills while helping their community. More than one million New Zealanders are involved in some form of voluntary work.
Information about participating in volunteer work and links to sector organisations.
Use your skills to help someone else. Search for volunteer jobs in your region by job category and type of organisation.
For more information
This covers:
- general information
- who can take part
- payments
- what happens when an employee leaves
- training and up-skilling.
Call Employer Line: 0800 778 008
Websites that may help
Information about the scheme such as employment variations, collective bargaining and leave. You can ask them a question and see answers to other people's questions about the scheme.
Information about ACC levies.
How employers can apply
Please call Employer Line. If you're interested in the scheme you'll then be contacted by someone and provided with more information. They can help you with your application and tell you about any other assistance we may be able to offer.
- Employer Line: 0800 778 008
- contact us.