Did businesses pocket quake cash?

Taxpayers gave more than $14 million to keep workers in quakeaffected jobs but some bosses may be pocketing the cash.

Work and Income figures show 1301 businesses got money under its earthquake support subsidy, which started after the Kaikoura earthquake on November 14 to help employers keep staff while things return to normal.

But a Wellington cafe worker said she was yet to see a cent for eight weeks out of work, and was forced to draw money down on a student loan to live.

The university student, who did not want to be named as she was now back working at the cafe, said she called the Winz helpline in December about the subsidy but was told to talk to her employer.

It was early January when she returned to paid work.

She asked her boss about the payment ‘‘multiple times’’ but was fobbed off with stories about problematic paperwork.

The Ministry of Social Development confirmed a ‘‘small number of enquiries’’ from concerned employees.

‘‘The subsidy is paid to employers to support them to be able to continue to pay their employees, but the relationship is still between the employer and employee,’’ a statement said.

‘‘Employees have been referred back to their employer on this basis and, at this stage, no further investigation has been carried out,’’ the ministry explained.

The subsidy is paid at $500 per week for fulltime employees and $300 per week for part-time employees.

Work and Income advises that employers needed to continue employing and paying staff they were claiming the subsidy for at the rate each employee was receiving before the earthquake, where possible, along with the likes of ACC levies and holiday pay.

Employment lawyer Peter Cullen said this suggested businesses not paying employees while getting the subsidy may be acting in breach of the subsidy payment arrangement.

‘‘Where the employment relationship continues and the employee is ready and willing to work throughout, they should be entitled to receive their normal wages, regardless of the existence of a subsidy,’’ he said.

‘‘So they should claim that, if necessary, in the Employment Relations Authority.’’