Government measures in key jurisdictions 5th edition - Flipbook - Page 63
Ireland
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A 6-month payment moratorium – banks, credit unions, retail credit firms and credit
servicing firms will grant payment breaks on mortgages, personal loans and business loans
for those businesses and individuals experiencing financial difficulties caused by Covid-19.
Following ongoing discussions with the Central Bank of Ireland ("CBI"), the Banking &
Payments Federation Ireland have extended the original 3-month payment moratorium to
six months, which coincides with the majority of the EU and the EBA guidelines. On 8th
June, 2020, the CBI sent a ‘Dear CEO’ letter to CEOs of regulated firms that previously
granted payment breaks of up to six months to borrowers affected by the pandemic. The
‘Dear CEO’ letter outlines the CBI’s expectations of regulated firms when dealing with
borrowers in respect of Covid-19 payment breaks. It also includes the information that
should be provided to borrowers regarding Covid-19 payment breaks. As of now, Irish banks
are not offering a system- wide right to payment moratoriums, although borrower can be
offered breaks according to their individual circumstances.
Extensive supports for SME customers – banks are working to ensure that a wide range of
measures are made available to businesses who are trying to manage the financial pressures
arising from Covid-19. The measures include the provision of cash flow and credit facilities
as well as supply chain supports.
A customer focused approach – banks have committed to providing suitable tailored
supports for business including the extension of credit lines, risk guarantees and trade
finance.
These supports are intended to complement the range of Government supports, including the
Irish Liquidity Scheme detailed above. For more information, please see our recent articles
listed here: The ABC and DE of Emergency Liquidity Solutions (available here), Covid-19: Range of
Banking Measures announced due to the Pandemic (available here), Government Funding
Supports for Businesses Impacted by the Covid-19 Pandemic (available here), and Update:
Additional Government Funding Supports for Businesses impacted by Covid-19 (available here).
Employment
What
financial support
is the
government
providing to
businesses and
to individuals on
employment
issues?
Employment Wage Subsidy Scheme: The Employment Wage Subsidy Scheme (EWSS) provides
a flat-rate subsidy to qualifying employers based on the numbers of eligible employees on the
employer’s payroll and is expected to continue until 31 March 2021. Detailed information in
relation to the operation of the scheme can be found on the Revenue website here.
Covid-19 Pandemic Unemployment Payment (PUP): This is a payment which is available to
employees who either lost their job entirely or were temporarily laid-off, on or after 13 March
2020, as a result of the Covid-19 pandemic. The PUP is also available to self-employed
individuals whose trading income has ceased due to Covid-19. From 16 October 2020, the PUP
has been divided into 3 categories depending on the amount that the employee used to get
paid. The scheme is expected to remain in place until 30 June 2021. Further information can be
found on the Revenue website here.
Return to Work Safely Protocol: The government has issued a set of guidelines or protocols to
enable people to return to work. These are available here. The Health and Safety Authority has
also published various templates and checklists to assist employers in complying with the
Protocol. Those are available here. Employers need to be aware that they will continue to be
bound by their usual obligations as regards the safety and health of their employees (or other
visitors to their premises).
The Workplace Relations Commission, which is the forum of first instance for most employment
law matters, has postponed all face-to-face Adjudication Hearings, Conciliation Meetings and
Mediations for the foreseeable future in response to the reintroduction by the Government of
level 5 restrictions for Covid-19. Where in-person services had been scheduled for a future date
parties will be offered a virtual service, including remote hearing of adjudications using the
Webex platform. Virtual services that were already scheduled will continue to proceed. In the
meantime, the WRC remains open - complaints can be submitted electronically or by post and
a telephone mediation service is operating. See the WRC’s visitors’ guidance notes here.
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