Penneys will close their Irish stores temporarily during the coronavirus outbreak.
Mandate Trade Union members working at the retailer will receive two weeks of pay based on their contracted hours.
A review will take place after that period.
Around 5,000 workers will be affected by the closure.
In a statement, Penneys said the stores will remain closed until further notice
The company said: "Penneys has overcome many challenges over the past 50 years, and we pride ourselves on our agility and our ability to adapt.
"We thank all our employees, customers, suppliers and partners for their continued support."
It comes following the announcement that Brown Thomas and Arnotts stores will also be closing from today.
Mandate said the company behind the department stores has committed to paying workers their contracted rostered hours for the foreseeable future - with the union suggesting that should be a "benchmark" for other retailers.
'Devastated' retail sector
Meanwhile, the Retail Ireland group has called for emergency supports for the 'devastated' retail sector here.
Director of Retail Ireland Arnold Dillon said: "With the closure of more of our major retail flagship brands today including Arnotts and Brown Thomas there are significant issues to be addressed by Government both in terms of support for job losses and for businesses.
“We need to do everything possible to preserve vulnerable businesses.
"The State must continue to look at cash-flow and forbearance measures and to adjust supports which can help preserve as many retailers as possible through the crisis period.”
The Mandate union, meanwhile, has called for emergency measures for workers - with the union saying the €203 COVID-19 welfare payment "falls far short of what is required to sustain most families".
Mandate General Secretary John Douglas said: "Employers with the assistance of Government funding should be instructed to pay all impacted workers the equivalent of their normal net take home pay.
"The tsunami of temporary job lay-offs should not be allowed to swamp already stressed-out workers and their families."