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In the wake of the Covid-19 lockdown, many employers are assessing options available to them to save their business and are contemplating cutting staff. This decision should not be taken lightly as the underlying requirements for proper termination of employment still apply.

In response to the Covid-19 outbreak the Government has announced a $12.1 billion support package to support the economy. If you are an employer, contractor, sole-trader or self-employed, you may be eligible to apply for financial support.

The Covid-19 level 4 alert lockdown is having a significant impact on the way people work during this time. Whilst the Government is providing assistance to businesses such as the wage subsidy to pad the landing for employers, there are numerous challenges facing employees in the coming weeks.

The Covid-19 pandemic and the announcement of the Level 4 Covid-19 threat level in New Zealand has meant that many businesses may be forced to default on their commercial obligations, especially as non-essential businesses are told to close. However if their contracts contain a "force majeure" provision, this may provide them with a way out.

At a press release on 24 March 2020 at 1.00 pm a spokesperson for the Ministry of Business, Innovation and Employment (MBIE) said: "If you are in doubt whether you are an essential service, you're probably not".