Some hospitality businesses are abusing wage subsidy, says employee advocate

August 23, 2020

One of the hardest hit industries is hospitality and workers say not only have they lost jobs and hours, but some employers are abusing the wage subsidy scheme

Complaints about the Government wage subsidy have been pouring in, with over 3500 so far.

Over $13 billion has now been paid out in the wage subsidy.

One of the hardest hit industries is hospitality and workers say not only have they lost jobs and hours, but some employers are abusing the wage subsidy scheme.

Hospitality advocate Chloe King says her inbox is inundated with workers complaining about bosses abusing the wage subsidy.

“Their employer has said they’re not going to pay them over lockdown, whether they’ve got the subsidy or not.

“I've got them calling me needing food grants,” she told 1 NEWS.

For the next three days many businesses in NZ’s largest city must close their doors to customers.

However, Hospitality NZ CEO Julie White says she hasn’t heard such claims.

“I haven't heard directly that they have been misusing the wage subsidy, they are in survival mode so they’re trying to keep as many people employed as possible.”

Of the over 3500 complaints about the wage subsidy, 323 investigations are underway.

The Social Development Ministry says no cases have yet been prosecuted and it doesn't know how many relate to hospitality.

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