By Vaughan Granier 

This is the moment we have all been hoping for. Alert level 2 presents an opportunity to begin to rebuild; to undo the economic damage that we have all endured as a response to containing the COVID-19 virus. We write this acknowledging that many businesses have struggled immensely under the constraints, and are hard-pressed to find a way back to productivity and profitability.

Even more importantly, in an economy where the vast majority of businesses are smaller, more intimate and locally based, we recognise that the pressure can be on to maximise revenue and returns as quickly as possible. Unfortunately, a rush to do that may come at a cost to safety, and the strategy of level 2 is to open up the economy through requiring personal responsibility. What that means is that business and individuals are expected to do for themselves and for each other, what Lockdown did on their behalf, previously.

Proper social distancing and, for example, “the Three S’s” are not going to make it easy to simply “release the brake and floor it”. As we have said previously, a return to economic viability will not be like switching on a light; it will be more like switching on an oven. There will be a gradual heating up of the economy, a consistent improvement week on week, but not an instant event. Expectations can lag behind reality, and it would be unwise to take unnecessary risks to speed things up.

The financial pressure and the need for ongoing physical distancing will be at loggerheads for a while – until we get creative and invent new ways of doing old things. What we can do is help you to ask important questions, and guide you where we can, to find the answers.

Bubbles are expanding -what does that mean?

When a bubble grows, it exponentially increases risk. When bubbles grow and also start to connect with other bubbles, that exponential growth looks more like an explosion of possible contacts. In a family bubble of 4, matters are nicely contained. If we go to work, and there are 9 other employees each with a family of 4 as well, our possible contacts expand to 40 each day. If each worker comes into contact with 50 customers a day, each with a family of 4, the potential contacts now expand to 8,000. That is just work bubbles. After a week, that is 40,000 potential contacts. Now add in gym, church and attending a few end-of-lock down parties!

This is why contact tracing is important. It enables infections to be traced backwards from 40,000 potential contacts to a few likely ones on one day at one time.

What does contact tracing actually entail?

Contact tracing entails keeping a detailed record of the following information

  • Where a person was.
  • What time they were there.
  • Who they had contact with.
  • At what distance and how long that contact was.

It is easy when it is being done electronically, which is why a contact tracing app is so useful, but we are not there yet, so doing it manually is important. It is best to use a phone-based app like a Notes app, or our calendar app because we all have our phones with us all the time.

A responsible employer would require a daily contact log to be emailed/printed/saved and kept in a central place for ease of access.

How do we implement social distancing in a closed/small work area?

Keeping bubbles consistent and as small as possible is best – so in a workplace, having the same people working in the same team, working on the same days, using the same dedicated equipment, contacting the same clients all make the potential contact list exponentially smaller than letting everyone into a free-for-all environment.

Setting up physical pathways that prevent accidental contact or cross-contact also helps. Allocating machinery/equipment to a single user is very important. Constant sanitising and cleaning of common areas is one of the most important disciplines. Reorganising tasks and rotating shifts so that not everyone is at work at the same time, can also ease congestion in confined spaces.

How do we manage or prevent failure to comply with precautions?

  • Precautionary/physical distancing measures should be consulted on and agreed to by all.
  • Employees should all be made aware of the importance of adhering to precautionary measures. Notices, meetings, tool-box talks etc are all vital means of communicating.
  • Employees should also be advised that a failure to do so could lead to the spread if COVID-19
  • They should be aware that the business could be forced to close if an infection is found in the business or even possibly traced to the business
  • They should be aware that business can be forced to close simply for failing to comply with precautionary measures, even if there is no illness or infection known.
  • Therefore it should be regarded as serious misconduct (with the possibility of termination) to willfully and recklessly ignore precautionary measures. Accidental breaches are not the same as willful or reckless breaches and will be treated differently.
  • Employees are encouraged to proactively help each other to comply; and given the risk to the business and to their own jobs in the event of a closure, to make a point of doing so.
  • If there is a repeated breach, an anonymous reporting facility might be one way of management obtaining information to deal with the matter.

What will happen to the Wage Subsidy?

The wage subsidy is a fixed 12-week benefit that was paid out in a lump sum. When it is depleted, it is gone. That means that 12 weeks after it starts, or maybe sooner, an employer is once again on their own with regard to paying employees their wages.

How do we pay employees who work?

Unless an agreement was reached with employees to pay them a different hourly rate or salary, then an employee working a normal full day is entitled to a normal full day’s wage.

How do we make changes to pay if we can’t afford normal wages yet?

Cashflow takes time. Obviously, not every business will immediately be in a position to afford the full wage bill, but they may very well need “all hands on deck” in order to function. If you need to make any changes to pay, then it is vital to comply with employment laws and engage employees in a formal workplace change process to obtain their agreement where possible, or at least demonstrate good faith consultation before making decisions.

How can we access finances to assist with cashflow?

  • Business Finance Guarantee SchemeThe Business Finance Guarantee Scheme is a system providing targeted small loans to business via their normal banks. The Government in partnership with those banks will guarantee 80% of the risk of those loans for the banks, thus facilitating loan approvals to small businesses when borrowers may normally face increased scrutiny.
  • Small Business Cashflow Scheme – This is a one-off loan to support small businesses which have been adversely affected by COVID-19. A Business should apply for this through myIR, and it is administered by Inland Revenue. Applications by businesses can commence on 12 May.
  • Temporary Loss Carry Back Scheme (Bill, awaiting approval) – Businesses reasonably expecting to make a loss in 2020 or 2021 as a result of the current uncertain environment, can bring that loss forward by one year and declare an estimation of that loss earlier, in order to reduce the tax burden of the current year. The loss can be done in full or in part and will still be available to be carried forward in future if not carried back now.

How do we pay employees who are not working?

  • Employees who are not able to be deployed yet, present a difficulty as the wage subsidy will end and they will be entitled to work and be paid unless a force majeure clause exists in their contract and is activated. The above comments on workplace change will apply if you need to make further arrangements with them. One option, skills and systems willing, is the idea of rotating work between employees so that everyone receives at least part of the benefit of returning to work.
  • Employees who are self-isolating because of possible infection/illness are doing their duty as responsible citizens, and where possible flexibility will be greatly valued. Obviously, if they have sick or annual leave this is one avenue to explore, but most employees will not have any left. So, provided it can be afforded, making concessions to advance leave or “going negative” would be an option. Supporting employees who might be seeking extended credit facilities at their banks with positive letters and guarantees of ongoing employment, would be another.

How do we pay employees who need to take leave?

  • Annual leave

Annual leave will be paid as per the law at the greater of the ordinary weekly pay, or the average weekly pay over the past 52 weeks.

  • Sick, bereavement or family violence leave

Incidental leave, such as the above, will be paid at the greater of the relevant daily pay, or the average daily pay over the past 52 weeks.

What if someone gets sick at work?

Firstly, any respiratory illness should be treated very seriously and employees should not “push through” any illness. So leaving work and taking sick leave immediately is very important.

If there is any chance of a COVID-19 infection, then:

  • Isolate
  • Notify and provide contact tracing records
  • Test
  • Contact Trace as carefully as you can within the business – employees, clients, customers, suppliers etc. That way you can exclude potential contacts and probably keep operating

What if a client or customer gets sick and an employee is possibly involved somehow?

  • See above for sick employees.
  • Contact trace, exclude from risk whoever can safely be excluded and provide a list of people who need to be tested.
  • Provisionally isolate.

Vaughan Granier is the National Workplace Relations Manager for HR Assured NZ. He has over 24 years’ experience in international human resources, health and safety, and workplace relations management. With over 10 years working in New Zealand and Australian companies, he provides in-depth support to leadership teams across all areas of HR, Health and Safety, and employee management.